Brand Equity Guide
Updated: Aug 27, 2018
The purchasing decisions of today’s consumers are widely influenced by several factors, one key factor is that of brand equity. Brand equity is how consumers differentiate between you and the alternative, it is crafted around consumer experiences, the compounding of these experiences over time creates equity or brand value. Brand equity is the factor that motivates consumers to refer your business to their followers, it instills loyalty and brand advocacy. Most businesses look to achieve a positive brand equity; hence they make strong promises to their consumers, but only a few get it right and are able to provide a reason for consumers to purchase from them.
Global icons have an immense brand equity, but its key to remember that this equity was carefully crafted over decades and not overnight.
If you are one among the many businesses that are looking to build a positive brand equity, then this can help chart a course of action to get there. Given below are five critical aspects your business needs to get right in order to have positive brand equity.
1) Value Proposition:
This may be blindingly obvious to most, but it is still one of the most flawed aspect. Businesses keep failing to get the secret sauce right, they fail to address market need and fail to understand their products value proposition. In order to build a desirable brand equity, businesses need to clearly emphasize their value proposition and be able to represent that one aspect your business stands for.
Consumers will be able to identify with the brand only when businesses are clear in their message and value proposition. If businesses fail to get this right, then consumers will just consider your brand as one among the many and will not be able to differentiate you from the alternative.
2) Product and Service Quality:
The backbone to any brand is its product and service, businesses should always ensure that every interaction a consumer has with the product should be positive and all services that revolve around it should work to provide a memorable experience for the customer. The product and service should always address a need in the market and that should be clearly defined and delivered as promised during promotions.
Every aspect of the product and service, from design, to packaging, to delivery, to experience should be aligned to delight the consumer. Expectations should be met, and promises should be delivered to gain a positive brand equity.
Always listen to what your consumers have to say, view social media as a medium to understand your market. According to a 2018 Global Consumer Insight Survey by PwC, shoppers trust the wisdom of the crowd and social media is the number one medium where consumers find inspiration for their purchases. This entails that businesses need to be more active on social platforms and listen more to what the consumers are saying about their products and services, so that they can take advantage of potential opportunities and rectify pitfalls.
Businesses need to target smaller audiences and provide memorable experiences that will compound over the years. Social allows businesses to enhance their delivery and provide knowledge through promotion which in turn increases brand equity. After all brand equity resides in the mind of the consumer.
4) Internal Atmosphere:
Brand equity is a combination of both external and internal factors. Businesses need to believe in what they are selling and not do so just for a bump in sales. Global icons are known for instilling the same motto outwards and inwards. Companies that scream innovation, implement the same within and are always improving their processes, ensuring their employees have a great experience.
The internal code of any business impacts its external, if the internal code is flawed, it will show with external efforts. Always improve internal processes and ensure the entire business is aligned towards one goal or motto, ensure to keep staff moral up and provide positive experiences, this will help improve brand equity. What your staff says about your business matters as much as what your consumers have to say, in some cases they may even impact consumers decision making.
Collaborations can have a huge impact on brand equity, the impact can be negative or positive based on the entity involved. Always research and ensure the entity your business is collaborating with aligns with your goals and are not in negative sight. Never lose sight of consumers during collaborations, always have their inputs and analyse their reactions towards a potential tie up. Always have market acceptance before any major change, it will help stabilize brand equity during transition.
Building brand equity is not easy, it requires constant monitoring and effort to compound over the years, but if done right the pay off is huge, given below are few benefits businesses with positive brand equity enjoy:
Increased Sales and Profits - Product and services sell faster
Higher Influence – Dominance in market opens new opportunities
Loyalty and Recognition – Brand re-call, irrespective of product and service
Faster Market Acceptance – Newer products and services are easily excepted
Let us know in the comments below on how these five steps have helped improve your brand equity and if there are newer methods.
If your interested in implementing these steps for your business, then click here and request a free quote today.