Explaining How To Build Your Brand’s Equity
By Jenny Williams
Brand equity is quite simply the value attached to a brand. The term value doesn’t have a monetary meaning, so it is challenging to pin down the exact value of a brand. Instead, it refers to the value a customer or user places on the brand’s name and nothing else. The more equity a brand has, the more custom it has. Customers have faith in and trust the brand and will often pay a premium for it. This is true in supermarkets where there are hundreds of leading brands on every aisle with other brands competing against them. Despite the higher price tags, there can be little difference, if any, between well know brands and lesser knows.
What is important to companies is to know how to build equity in their brand and become a name that people know and trust in their own area of the market. When we think of breakfast cereals there are brands which have high equity in them as they are household names.
So, how can a brand build up equity?
The customer should recognise your logo or branding colours instantly. This increases brand awareness and gets you known on the market. It is not only the physical appearance that increases awareness. Having excellent and consistent customer service is another great way to increase brand equity. Customers who have their issues dealt with swiftly and caringly are more likely to come back to the brand and give it a second chance.
Communicate your brand’s meaning
This can be a back story to the company’s creation and its lowly beginnings. Having a compelling and genuine story creates a positive emotion towards your brand and increases equity in it. It is not enough to simply say what your brand or product does any more. You have got to communicate why your brand does what it does. This can be solving a day-to-day problem or by using sustainable materials. Leading companies produce their products from recycled materials and promote this. They explain why they use recycled materials to make them more appealing and consequently increase their brand equity.
Build a community
Online forums are all over the internet and are set up around a particular product or company. People with similar interests join up and discuss pros and cons with other users. This is a brilliant place to build brand equity as the more people promote you, the more sales you are likely to get. It is worth creating these yourself and having a team monitor what is going on. Chipping in with an acknowledgement shows that you care, and this will also build brand equity.
How to advertise
With the popularity of social media and blogging, companies are being forced to invest their efforts into different spaces. Thinking out of the box can really increase brand equity and make it stand out from the competition. This can be done with traditional tv and radio adds but people are connecting with social media multiple times a day. Getting your brand to be recognised and promoted on line is almost a necessity in building brand awareness and equity.
Keeping ahead of the game
This sounds obvious but keeping your brand at the forefront is key to building and securing equity. Monitor social media and advertising campaigns. If these are not being as successful, they need to be changed. Also, listen to customer feedback. If most of your customer base are suggesting the same thing, then it is a good idea to follow them. This shows you as a brand who listens and provides what customers want. Doing so helps to build loyalty to you and will also generate recommendations from satisfied customers.
Brand equity makes your product more desirable to people and therefore more likely to keep using it. As a company, this is the desired model, hundreds of repeat users, and recommendations. The great this is, your brand doesn’t have to change massively, all that does need to change is the publics perceptions and emotions towards you. Once a customer is happy with a particular brand, they tend to remain loyal to it and keep using it.
Jenny Williams an American business analyst and writer at Assignment Writing Service and Research Paper Writing Services, regularly contributes to debates around new companies. She also writes for Gumessays.com service on her passion for all things gardening.