Brand equity refers to the value of your brand’s messaging. Simply put, brand equity describes a consumer’s perception and personal experience with your business. Strong brand equity can lead to lifelong customer loyalty, higher demand for your products or services, and a premium product price.
What factors contribute to brand equity?
- Brand awareness: Is your brand easily recognized by current and potential customers by its logo, products, tagline, and more?
- Brand loyalty: Are your customers willing to make multiple purchases from you over time? Do they recommend your products or services to their friends and family members?
- Perceived quality: What is the level of perceived value associated with your brand?
- Brand association: What values and attributes are closely associated with your brand?
Every business within different industries will need to customize their roadmap for building positive brand equity. For business owners and stakeholders, this shouldn’t be an overlooked component of your business structure. In fact, prioritizing positive brand equity can support your organization’s goals.
What are the benefits of building positive brand equity?
- An increase in sales: Customers are willing to pay more for your products or services if they trust your brand’s reputation or are aligned with your values.
- Increased customer retention: Creating a positive, memorable customer experience makes it more likely that customers will make repeat purchases.
- Growth: Correctly leveraging brand equity can help you establish your business in new markets or to untapped demographics because customers are more likely to try your new products.
How can your business build brand equity?
What are the most effective ways to begin building brand equity? Here are a few simple tips to get started:
1. Identify your company’s core values.
The core values of your business are the cornerstones of what your brand stands for. Ideally, these values should be incorporated into your brand’s look (design), message (content and language), and customer relationships. Your core values strongly shape your company’s culture, making it crucial to identify and evolve your core values over time.
2. Establish and build brand awareness.
Brand awareness refers to a consumer’s ability to recognize your brand. Is your branding easily identified by demographics that haven’t purchased your services or products? Is it correctly associated with the right products?
To increase brand awareness, your brand must be viewed at the right time and in the right place by potential consumers. This can be achieved through strategic brand placement and targeted marketing.
3. Develop a positive perception of your brand.
Brand perception describes the emotions a customer feels toward your brand. This perception can be positive or negative, and a positive brand perception means consumers are more likely to choose your business over a competitor and recommend it to others.
4. Build customer loyalty.
A brand with a strong base of loyal consumers can better withstand economic instability, supply chain disruptions, inflation, recession, and more. Brand loyalists will continue to buy the products and services they love. Strong brand loyalty leads to long-term, sustainable business success.
5. Improve and evolve the customer experience.
Customer experience involves any in-person and online interactions with your business. A great customer experience increases overall satisfaction and loyalty, making customers more likely to recommend your products to others. That’s why it’s vital to continuously find new, innovative, and unique ways to serve your customers. Send surveys to current customers seeking feedback on what new challenges they’re experiencing within their business or industry. After, work with your team to find ways to support that problem with your services.
6. Engage with your community regularly.
Authentic human connection is vital to establishing and fostering a successful business. Start building a community around your brand. Use social media networks and live or virtual events to make community members feel valued and create a unique digital and real-world community experience.
Start building brand equity in your business.
Cunningham and Associates can help you achieve your business goals, from conducting business valuations to building brand equity. Subscribe to our blog now to receive helpful updates delivered straight to your inbox.