Think for a moment about the impact of the name Porsche or Tiffany’s.
If someone is looking for an economical car or one with fantastic safety ratings, they would not automatically turn to Porsche.
People turn to Porsche cars because the brand carries with it a particular level of prestige. This allows the brand to capture their targeted portions of the market, despite costing more than competitors.
The same concept applies to Tiffany’s. Even cities like ‘Jerusalem’ can carry with them a degree of attraction that draws people.
This attraction by customers is referred to as ‘brand equity.’ Here is what you need to know about this phenomenon and what it can do for your organization.
What is brand equity?
Brand equity is the appeal that a brand name carries for customers based on how that particular organization is perceived by potential buyers.
Brand equity can apply both to businesses as a whole, such as Apple, or to individual products, such as a Corvette.
Surveys offer fantastic tools for better understanding how customers view your organization or your product. For example, you can ask potential customers about their familiarity with the brand or how they would rank the trustworthiness of your organization compared to competitors.
As you build your efforts to gain brand equity, remember that branding and marketing are not the same things. Branding should drive marketing by providing messaging and ideas for marketing campaigns. Branding focuses more on recognition, awareness, and equity, while marketing usually focuses on conversion-driven goals.
Why is brand equity important?
Brand equity helps your organization stay on the forefront of the minds of potential customers as they get ready to buy. It allows businesses to attract more customers while spending less per sale, helping the business grow.
When customers feel as though they are familiar with you and your offerings, they become more likely to select your brand over competitors.
How do I start building brand equity?
Building brand equity requires a firm understanding of precisely who you want to connect with, their pain points, and how your brand fits into that market’s needs.
You’ll want to focus on these steps to make your brand strong.
- Know who you are targeting and why. You want to know what these consumers' pain points are and how your brand can help solve them.
- Know how you can make yourself stand out. Brand equity is not built by blending in with the industry. You want to stand out in your messaging, your imagery, your logo, and your advertising strategy.
- Be consistent. As you begin to build marketing campaigns across multiple platforms and channels, you want to make sure that your messaging remains consistent so that customers can easily connect your different promotions to your brand.
- Watch the competition. Know what the competition is doing in their branding and take note of what does and does not work for them when targeting your common niche. This can help you improve your own strategy.
- Reinforce your messaging. Make sure that prospective customers regularly receive your messages to strengthen the associations you touch upon. Use a variety of touchpoints and opportunities to help customers engage with you.
- Have outstanding customer service. Once you get someone to buy from you, you want them to remember your brand for treating them well. You want prior customers to tell others how great you are. This builds an organic reputation.
How do I maintain brand equity?
As you begin to build brand equity, you want to make sure that you regularly reinforce the messaging you send out for your brand.
Presenting your brand in a consistent manner can raise your average revenue by an incredible 23 percent. Consistent branding across channels will help customers recall your brand name and help you create a positive reputation.
Do not just stick with digital advertising. You want to reach out to customers across a variety of channels, including television, billboards, and radio. This will help you become a consistent presence in the experience of your customers.
If certain qualities of the brand become forgotten over time, repositioning or revitalizing your brand can be a good course of action. This lets customers know what else you have to offer and can help cast your organization in a new, positive light.
Brand equity can offer a variety of helpful traits for your organization. Major entrepreneurs recognize the importance of having customers make certain associations with your brand.
Advertising to create awareness of your brand and influence your reputation can have a positive impact on your long term revenue, even if it does not lead to immediate ROI.