Brand equity represents a brand’s assets or liabilities in the form of brand associations, brand visibility, and customer loyalty. Strong brand equity is a foundation for a company’s long-term success and should represent the value of a brand.
Brand equity is an essential part of brand-building strategies through its impact on the brand’s ability to sustain a long-term competitive advantage.
Brand equity can help you increase your brand awareness. Brand equity also helps build relationships with clients by promoting brand loyalty for financial benefits in the long run.
Develop a Strong Brand Personality
A brand personality makes sure that customers perceive the brand the way you want them to. Brand personality and brand story are vital elements of your brand kit as they help you make better marketing and strategy decisions in the future.
If you are just getting started with branding, you can use visual representations to determine your brand personality. Elements such as the color of your logo, the font you use on your labels, and your social media give your customers insight into who you are.
Establish a Strong Mission Statement
A mission statement is a key marketing tool for your business. Creating brand equity for your business helps you connect with your customers and establish a good reputation among customers and business partners.
Your mission statement should be appealing to your potential customers to help build positive associations with the brand.
To establish a strong mission statement, you need to determine the core values of your business, your target audience, the unique values your business provides, and the image you wish to maintain.
Customers are always looking for solutions and not buzzwords. Your mission statement should focus on your main objective and clearly articulate the value your company provides.
Build Brand Awareness
Brand awareness is the degree to which customers associate brands with specific products. In your efforts to build brand awareness, consider elements of your business that your customers interact with often and how you can present them to potential customers.
Your logo serves as the face of your business and is meant to give you valuable exposure, whether it’s on social media or on the packaging.
Your website informs your customers about your business, while blogs and social media increase web visibility and show your customers more of your brand personality. Once you build your brand awareness, don’t forget to measure your brand awareness at all levels and the brand awareness of your competitors.
Don’t depend on brand awareness quick fixes, but rather take time to think about long-term brand awareness with the right people in the right way.
Create Effective Messaging
The best way to understand your brand equity is by opening lines of communication with your customers.
Sending out automated feedback forms with rewards for response or activating email messaging for feedback are sure ways to help you build trust in your brand and ensure there are return customers.
Establish a High Level of Customer Experience
Customers determine the strength of your brand’s equity. Therefore, you need to provide a high-level customer experience to build and maintain positive relationships with your customers.
A growing relationship between you and your customers can build loyalty and lead to repeat purchases. High-level customer experience can take the form of staying in touch through social media and tracking, listening, and responding to any negative feedback.
Strong customer experience can reshape how customers feel and think of your brand. Customers respond to your brand through feelings and judgments of quality, credibility, and relevance of your products to their needs. Better customer experience could ignite positive feelings such as excitement, fun, security, and self-respect.
Customer Loyalty and Retention
Businesses strive to attain customer loyalty and retention as they are important components of brand equity. Loyal customers who continuously buy your products and engage with your brand are valuable assets to brand equity and capitalize on customer loyalty and retention by creating incentive programs.
Customer retention is a way of deterring customers from defecting to another company. The more returns customers buy, the more they are likely to buy again.
To attain customer retention, create strategies around your business goals and insights to build a more personal relationship with your existing customers.
Implications of Low Brand Equity
Failure to create strong brand equity can lead to failure. It can also affect how customers perceive your brand, which can damage the overall growth of your company.
Since brand equity plays a major role in the formation of customer perception, building the right brand equity can influence customers to buy more from you, become loyal, and recommend others to your brand.