Why are you reading this?
You must have a reason; perhaps to be enlightened or to find answers to some questions.
Actions without purpose are meaningless. Hence the first question you need to ask yourself before any action is ‘why’ –‘Why am I doing it?’ Being aware of your reasons help you wholeheartedly involve in your actions. And that’s just one of the many benefits.
‘Why’ for brands
Emphasizing ‘why’ is also the reason behind the emergence of big brands. Their methods of communication are quite different from others, which gives them a competitive edge over theirs. They share their vision and story based on why they started their business or why they are doing what they are doing. Sharing your brand’s message helps you strengthen your connection with your audience, giving them a reason to ensure loyalty.
The Golden Circle
A comprehensive view of this concept is given by Simon Sinek in his book ‘Start With Why’. Through this book, Simon has unveiled the Golden Circle to help organizations uncover their purpose. It highlights the nuances of the procedure for clear understanding. He also discusses ways to communicate that purpose in the internal and external settings, creating a strong brand culture. So here it comes.
Key elements of the Golden Circle
Below are the three key elements of the golden circle in detail. Give them a thorough read to understand their impact on the overall results.
-
What
‘What’ is the product or service that the organization offers to its customers. That is the most obvious part of a business. It forms the outermost sphere of the golden circle –least important.
“We are a top-rated digital marketing agency.”
-
How
‘How’ highlights the ways in which a business sets itself apart from its competitors. These are the special features that give the customers a reason to prefer you over others. You can also call it a unique selling point or USP. How forms the concentric circle of this model.
“Our creative professionals guarantee to double your sales.”
-
Why
‘Why’ is the core of the golden circle. It is directed towards the purpose of your organization. It includes the beliefs and values incorporated into your business. It provides a definite answer to why your business exists and why should others care about it.
“We are dedicated to assisting businesses in improving their sales and ROIs at a super-affordable cost.”
Some non-serious or materialistic businesses only serve to earn. Their sole purpose is to make money. However, according to the golden circle, they do not count as a purpose. Instead, they are merely the results of business activities. The purpose is the norms and principles on which the business operates to generate value for the customers.
Prevailing marketing approach vs the Golden Circle
These elements remain the same for all organizations. What varies is an organization’s focus toward them. Let’s learn how most businesses emphasize and communicate each factor and how they should according to the golden circle.
Prevailing marketing approach
Most businesses focus on their ‘What’ and ‘How’, keeping ‘Why’ –the major factor, aside. That’s because these factors are easy to determine, execute, and explain.
They intend to create value through those two factors and rely on them to stand apart. Their unique products might help them generate a fair market share but it would not be as powerful to beat a business based on ‘Why’.
We can say that the organizations start from the least significant element of the golden circle yet expect results.
The Golden Circle approach to marketing a business
‘What’ and ‘How’ do generate results, but they are not as effective in deriving a particular behavior as ‘Why’, observed by Simon Sinek. According to him,
“People don’t buy what you do, they buy why you do it”
Although these outer factors enable customers to make educated purchase decisions, they do not shake their emotional grounds that could result in long-term relationships and customer loyalty. Hence, they fail to make your customer feel a certain way about your products or services.
The golden circle, starting with Why intends to fill that gap between your offerings and their perception in your customers’ minds. Such an approach directly targets the decision-making part of a brain, hence, deriving unmatchable results.
Adopting Why-approach is not only limited to external communications. Instead, a business must maintain a purpose-driven vibe generally in both internal and external working environments. It is a great way to attract people that truly believe in your cause and want to be a part of it, be it employees, suppliers, distributors, investors, customers, or others associated with your business.
