Maintaining a competitive edge is critical to the success of your business. However, that’s often easier said than done.
So, how do you do it? One way is to build brand equity.
Here’s what you need to know about how to build brand equity.
What Is Brand Equity?
Brand equity is a marketing phrase that refers to the value a well-known brand adds to your business and products. Typically, it is defined by the experiences and perceptions of your customers.
If you want to know what the different types of brand equity are, understand that there are only two: positive and negative.
Positive brand equity comes when people think highly of the brand because of their wonderful experience with it, further reinforcing its good reputation. On the other hand, negative brand equity falls short of expectations due to the unsatisfactory quality of goods or services.
What are some brand equity examples?
Coca-Cola is one of the most recognizable beverage brands in the world. It has excellent positive brand equity because most consumers are aware of it and associate it with something good.
The same goes for Apple. Its positive brand equity stems from the reputation of its high-quality Mac computers, which allows it to expand its product line easily by leveraging a loyal fan base.
When a brand loses its perceived value, people are less likely to trust it, leading to costly repercussions. Goldman Sachs experienced this during the 2008 financial crisis when it was identified as one of the culprits in the meltdown.
BP’s brand equity as one of the biggest oil companies dropped in 2010 when an explosion on its oil rig in the Gulf of Mexico resulted in the largest oil spill disaster in history.
Why Is Building Brand Equity Important?
Most businesses are perplexed by the question, “What does it mean to develop brand equity?” However, developing positive brand equity is important and has several advantages, including:
Bigger Market Share
If many customers have a good impression of a certain brand, they generally favor it when faced with many choices. When your brand is known for being exceptional, you will secure a greater share of the market, as loyal customers will continue to stick with you.
Another compelling reason to grow brand equity is premium pricing. Because of a brand’s perceived high value, companies can charge more than the average for the same product or service.
Product Line Expansion
Possessing strong brand equity enables a business to expand its services more easily. Customers will continue to purchase new items or services if they feel they will be as excellent as the originals due to the associated brand.
You have more leverage during negotiations as a company with valuable brand equity because of your significant market share and revenues. It also opens up more opportunities for growth and expansion since potential business partners understand your brand’s value.
Now that you’ve seen the advantages of high brand equity, the next question is, “What increases brand equity?”
How Do You Build Brand Equity & Brand Elements?
Positive brand equity doesn’t happen overnight—you have to start from the ground up and grow it. Here’s how to do it.
Increase Brand Awareness
Brand identity is what makes your brand stand out from the rest. If you want customers to be aware of your brand, take steps to make them see it and remember it fondly:
- Use the same logo or image for consistency
- Provide a positive customer experience
- Give great customer service through a responsive call center
- Be present on several platforms—email, social media, and websites
When done right, awareness leads consumers to trust your brand.
Tell Your Brand Story
Know what your brand stands for, and communicate these values effectively to the target audience. Most consumers are looking for brands that align with their beliefs, not simply to meet their immediate needs.
Develop better brand meaning through pleasing or unique customer experiences that reinforce your company’s values. If you’re a brand that puts its customers first, make sure they feel it at every stage of their purchasing process, including after-service. Having a customer-centric call center gets your message across loud and clear.
Encourage Positive Experiences & Feelings
When people have favorable opinions or feelings about your brand, odds are they’ll eventually become loyal customers. Their response to your brand, based on aspects like quality, credibility, consideration, or superiority, impacts brand equity.
The same can be said with how your target market feels about your brand—does it evoke positive feelings like warmth, fun, respect, excitement? If yes, more people are likely to gravitate towards it, but the opposite happens when there’s widespread negative sentiment.
Foster a Deeper Relationship with Customers
Developing valuable brand equity involves forming a strong bond with your customers. When consumers have a deep relationship or unshakeable connection with a brand, they fully trust it and have unwavering loyalty.
Such attachment is powerful because it translates to repeat, long-term customers. To foster this type of relationship, always make customer service a priority and customer experience top-notch.
Maintaining Brand Equity
Achieving valuable brand equity is only half of the job—you have to work constantly to maintain your brand’s positive perception and reputation. Otherwise, you’ll easily lose what you’ve built.
How do companies manage their brand equity? Most of them periodically audit their marketing efforts to see where equity usually comes from and focus on improving these.
Also, follow what strong brands often do—draft a brand equity guide that details the best use of assets and records results. It also helps keep track of long-term goals and minimize distractions that could pull you off target.
Grow Your Brand Equity with ROI
Whether you want to know how you protect brand equity, grow it, or both, partner with ROI Call Center Solutions to achieve long-term growth and a solid reputation in your industry.