Do you know how each one of us has a certain kind of personality and reputation to uphold? And based on that certain personality and reputation, we form and join groups and communities. We rely and build this upon who we are as a people and what our core values are. This will also be what other people’s treatment and interactions depend greatly on - not that it is the only factor. We take care and value even the smallest details because we know what it means to us as people and how much it might affect our relationships. In a business sense, that would also be how we would go about defining brand equity. With this brand equity definition comes the why and how to build brand equity. Read on, and let’s take our conversation to the next level.
What is Brand Equity?
Brand equity plays a vital role in distinguishing a business’ identity. It defines the value that your products give to your consumers, and in the grand scheme of things, brand equity is how well the market responds toward your products. Not only does it increase the value of the return and profit that you get in the long run, but it also strengthens your position and reputation in the market. Simply said, it is the value of your brand. However, it isn’t as simple as that. In fact, most experts and professionals have various attempts at defining brand equity for what it really is. See, because of its complex and multifaceted nature, there really is no exact brand equity definition. Nevertheless, you can still understand and learn how to measure brand equity and build it by knowing all the different factors and considerations under its whole concept.
Understanding brand equity is vital because when faced with various competitors such as larger players in the game, generic brands, and start-ups, having a well-perceived brand by the market will give you an advantage in terms of pricing and market share. This must all be followed by product quality, sales output, after-sales support, and efficient operations. When your business establishes itself and acquires large brand equity, then you will have earned the trust of your consumers, garnered the reputation of your company and its products, and provided you with the allowance to test, research, and produce new products.
Here are some terminologies that you need to be aware of and know as you try to understand, measure, and build the brand equity of your business:
Brand Identity. Brand equity is all about the value of your brand. Now it only makes sense that before you even consider knowing the value of your brand equity, you should first know what your brand entails. Brand identity is a vital aspect of your brand equity. Without properly knowing who you are as a brand and a business, you can’t expect your consumers (or potential customers) to know it. And if people have no idea about your identity, then we can’t expect them to put any value on it, right? To put it more tangibly, brand identity is usually centered on introducing and framing your business in public using various visual elements.
Brand Awareness. As the name suggests, brand awareness is another concept that falls under the umbrella of the brand equity definition, which refers to how much customers or the general public know your brand. This tests how quickly consumers can point out and differentiate your brand and your business from all the rest. This refers to how much knowledge they have about your brand and business. Do they know that your brand exists? Do they know what products you sell? What values and reputation do they associate with your brand? This tests how well you could introduce your brand to the world and how the public will respond to your brand.
Brand Perception. When discussing and defining brand equity, it is not conceivable to neglect how the general public sees your brand and your business, particularly the customer segments you are targeting. Perception of your brand is an important component of brand equity. When you look at the most popular companies today and mention any of their competitor products, you will most likely hear someone's reason for why the popular brand’s product is better. Regardless of other factors (especially price), those brands and companies esteemed as the best by the majority are deemed better than all the other brands.
Brand Recognition. While brand equity is often associated with brand recognition, brand equity encompasses a more broad and complex concept. Brand recognition only refers to how customers or the public are not just aware of your brand but actually know and distinguish it. This is either with a prompt or not. Brand recognition revolves around how well your customers can pick out your brand from other similar businesses’ brands. This is only one of the elements that go into brand equity definition because brand equity does not stop with just recall and recognition.
Brand Experience. When you talk about brand equity, it doesn’t stop at those only seen and known. Value is most felt and established when people truly experience all that you have to offer. Brand experience refers to how well your brand performed about the expectations and identity you initially set and promoted. This is where the quality of your products and services comes into play. Other things that go into the brand experience are your customers’ interactions with you and your staff and the quality of the programs you endorse and encourage your customers to participate in.
How to Measure Brand Equity?
Because defining brand equity is not a linear path, we can only expect that measuring it will also entail numerous factors to take into account. Here are some of the main things you should look into when you want to measure brand equity.
In knowing how to measure brand equity, you should understand how much your customers affect your brand equity. After all, it is important to note that (in reality), the growth of your brand equity is up to their response and their behavior. Don’t get us wrong; we’re not saying that your efforts at building your brand are pointless. We are trying to point out that your efforts are only as good as its lifted response and interactions from your customers. You can look into your brand equity by looking at consumer behavior and decisions. You can look into how they perceive your brand and their experience with your brand. Their words will go a long way in not just measuring your brand equity but also in building it in the long run. You can ask for their thoughts and opinions through survey forms, follow-up emails, or social media interactions.
Of course, one of the primary tools to measure brand equity is to look into how it affects your bottom line and other financial figures that you value. These figures can be based on how much revenue you pull. Or they can also be based on the value of brand equity as an asset. Furthermore, you can also look into the percentage of market share that your company holds for the time that you are measuring. Take note that these figures are easily changed and affected by internal and external factors, so you have to be careful not to overestimate or underestimate the values you see.
How to Build Brand Equity?
1. Develop Visual Identity
Image taken from Strikingly Product
Brand equity might not only be about how your brand and your business are seen, but it sure does help your value grow when you have visual prompts set out for your consumers to absorb and recognize. That is why in knowing how to build brand equity, one of the main things that you should invest your time and efforts on is developing your brand logo, your brand identity, your brand colors, and all other brand visual elements.
Another important step in knowing how to build brand equity is to focus on providing the best customer experience to each customer that walks through your doors - or enters your website. There are so many innovative ways to invest and really improve how your brand is experienced by all customers. It is vital that you really put effort into ensuring that they are well-taken care of and that all your endeavors are really set to help and satisfy them. Because if your customers feel valued, then they would also
While your products and services can do a good job in contributing to your plans on how to build brand equity, you still have to give extra time and effort in making sure that your brand is spread throughout the market. Many people know or have the potential to know your brand and your business and all you have to offer. Utilize all the online platforms that are available and appropriate to your business and brand, which range from building your website to social media integration and interaction.
It might take some extra effort to measure and build your brand equity. But given the brand equity definition, it will all be worth it in the end. After all, having strong brand equity means that your customers are responding well to your own efforts. And who doesn't want to be received with open arms and hugged tightly, right? With tools like Strikingly to help you know how to build brand equity up and maintain all of your brand equity status and other brand components. Sign up now and let us help you build your brand equity!