4 Ways to Boost Your Brand Equity
In simple terms, Brand Equity is the total value of a brand. The value comes from how a brand is perceived, which goes on to define how others relate to the brand and create relationships with it. If the perception of a brand is positive, it leads to positive brand equity. Conversely, if brand perception is negative, this can lead to the brand being devaluing.
Having high brand equity can lead to business expansion, higher prices, better stock value, and more. Research has shown it can even help attract top talent to your organization.
Building brand equity is something you must think about right from the start. Amazon has now overtaken Google and Apple to become the world’s most valuable brand. Amazon’s use of technology and obsession with customers has led to its growth. Amazon is constantly adapting and transforming based on customer feedback and needs. On the other hand, when a brand is involved in something negative, it is detrimental to its equity. For example, when Shell caused an oil spill in the Niger Delta, it damaged its reputation, leading to negative brand equity. This was an important crisis for the company and they have been actively taking steps to repair their reputation and gain more value since.
There are many different ways brands can boost their brand equity. At the core of it lies brand awareness and customer experience. When more people are aware of a brand and consistently have a positive experience with it, it can lead to the brand having higher equity. Consumers will then reach out for that brand on the shelf, or add it to their e-shopping cart. Over time, they will become familiar with the brand and prefer it over other brands, becoming loyal customers. If they have a really good experience with a brand every time they shop, they will also be more likely to recommend it to their family and friends. Let us take a look at some of the methods to increase brand equity in more detail.
When you consider how a user can recognize your brand, there are many ways, but here are the essentials.
・Have the right logo
Having a great logo is right at the foundation of having your brand recognized. It showcases your business’ identity, mission, and ideals. Read more about the importance of a great logo here.
・Consistency in use of visual elements
Typeface may seem like a minor detail, but can go a long way in illustrating your brand’s traits and personality. Whether you have a more playful font like Coca-Cola, or a more traditional font like Chanel, as long as you are consistent in your choice and use of fonts, customers will be able to build an association with your brand every time they see your communications.
Brand awareness represents the extent to which your target audience is familiar with your brand. It goes without saying that high brand awareness impacts brand equity.
How is your business going to help answer the needs of your target audience? Start by addressing key questions about your business so you can develop your business proposition and brand identity.
By using media, you can get your brand in front of customers so it’s top of mind. Media can also influence how customers perceive your brand. Some of the ways you can do this is by having strategic brand partnerships, using content marketing, and thinking consciously about your social strategy.
A good brand communicates consistently with its customers. Customers should have consistent interactions with your brand throughout their user journey. Having a clear branding toolkit as well as communicating in the same manner, in a defined cadence across your channels, goes a long way in building the customer’s trust in your brand.
Lush, the handmade cosmetics company is great at building a consistent and rich narrative about their brand. Their commitment to organic ingredients shines through in all their communications right down to how their employees express those values in the store.
It’s important to create experiences that differentiate you from other brands. You can do this by finding emotional and engaging ways to connect with customers. A study showed that 62% of consumers feel they have a relationship with a brand.
A great example of a brand that creates unique customer experiences is Disney. First of all, Disney focuses on making sure its customers have a consistent experience across all platforms -- starting with mobile and chat to social media and in-store. They also use customized ways to make their customers feel special, such as their magic bands. Ticket owners to Disney's resorts receive magic bands that are used for different functions: making payments and as a key to their hotel, storing photos taken with Disney characters, and more.
Brand reputation is important, not just for consumers but even for a brand’s organization. A survey by the World Economic Forum and Fleishman-Hillard showed that a company’s reputation is a huge component of a company’s value and performance. The survey showed that a corporate brand or reputation represents more than 40% of a company’s market capitalization. 77% of respondents believed that reputation has become more important over time. Here are some of the basics to ensure you are managing your organization's reputation and, indirectly, brand equity.
As your business grows and you start creating more brand assets, it's important to have a method to manage them. You should think about how your digital and physical assets are organized and also have a methodology for your marketing and PR teams to be able to access the appropriate assets easily.
According to a Deloitte study, eight in ten consumers believe that trust is the first emotional metric that influences their loyalty to a brand. When a brand is consistent and dependable in the customer service it provides, it presents a positive image to consumers. By allowing consumers to reach out via different channels (via social media, call center, or elsewhere), the consumer knows they can rely on the brand to resolve any issues they might be experiencing with the brand's product or service.
Businesses measure brand equity in different ways. The main ones include customer feedback, change in customer preferences, and established brand metrics. You can work on building an understanding of what the baseline of your brand’s equity is and then measure changes against it over time.
If you are looking for a place to start measuring brand equity, customer feedback is the best place. Whether you conduct polls, surveys, or research studies, the feedback your customers (and even those who are not your customers) provide can be invaluable in determining how your brand is perceived.
Brand equity may seem like an unattainable concept or something only big companies and brands can achieve. However, there is nevertheless value for small and medium-sized companies to invest in measuring, understanding, and monitoring brand equity. You might just learn how effective you are as a business, as well as be able to collect helpful nuggets on how to develop your business for further growth!