Branding is an incredibly broad concept that encompasses several different disciplines and elements.
Among these is brand equity, which refers to the value attributed to a product based on its brand.
Let’s take a closer look at what brand equity actually means.
What is brand equity?
Brand equity fundamentally refers to the value a brand can add to a product beyond its actual features and functions.
Brand equity can play a crucial role in consumer purchasing decisions, as a strong brand naturally fosters a certain level of loyalty.
Brand equity arises partly from brand awareness and loyalty but also from perceived quality and the associations consumers have with the brand.
How to achieve positive brand equity
The additional value attributed to a product results from consumers’ positive experiences, attitudes, and feelings toward the brand.
To establish a strong connection between a brand and its target audience, it is first essential to create brand awareness.
This naturally follows from targeted campaigns on the right channels, where strong storytelling highlights the brand and its quality.
Providing excellent service across all company channels also contributes to a positive customer experience, leading to trust in the brand through positive reviews.
A growing customer base exhibiting loyalty can be achieved by investing in loyalty programs and personalized experiences.
However, competition is fierce across most markets, making it crucial to stand out and establish a strong brand identity from the beginning.
How to measure brand equity
There are several ways to measure brand equity.
Surveys are among the most commonly used methods and can measure parameters such as brand awareness before and after a campaign.
Ongoing feedback regarding product quality is also highly relevant and can be collected through short surveys via email marketing after a purchase.
Another interesting study is brand associations.
This qualitative research method involves a panel of consumers associating various elements with a brand, providing businesses with insights into the perceived value of their brand.
Finally, monitoring social media can be beneficial to track comments on company profiles and user reviews.
Curious how I would market a clothing brand? Get the answer here.
What are the benefits of positive brand equity?
A brand with positive equity naturally enjoys many essential benefits, but achieving this requires time and patience for lasting results.
First and foremost, positive brand equity fosters brand loyalty, which ultimately enables expansion into new product categories.
It also ensures greater market relevance and a stronger position among competitors.
However, like many other aspects of business, maintaining brand equity requires continuous attention to consumer opinions and space for ongoing optimization.
Comments