How to Build Effective Brand Equity In 4 Simple Steps
Say you want to advertise your restaurant, your pet shop, or any other business for that matter. One thing you’ll always start with is your brand. When branding comes into the picture, you will hear so many words and phrases thrown around, such as brand identity, brand archetypes, brand awareness, and, in this case, brand equity.
Brand equity is what makes Apple and Microsoft household names. It’s why people pay a little more for Tylenol than generic brands. Nike, Instagram, Starbucks, Coca-Cola, and the list goes on—all of these brands have brand equity. And they enjoy such strong customer loyalty and retention because of it.
Before we dive into how you can build effective brand equity, let’s first define this marketing term and what it entails.
What Is Brand Equity?
Brand equity is the perceived value of a brand in the eyes of its consumers, and it often reflects the general public’s perception of the brand, whether it is positive or negative.
Nowadays, we know that a brand’s reputation can make or break its business. That’s why it's more crucial than ever for your brand to focus on building its brand equity.
With more positive brand equity and a greater perceived value in the marketplace, you can charge a higher price premium for your products and services, expand your company’s market share, enjoy more sales, and create a loyal network of customers. On the other hand, you risk decreased revenue and poor brand reputation with negative brand equity.
How Do I Build Brand Equity?
If you want to stand out from your competition and enjoy a better brand reputation, you always have to get to the core of it all: your consumers. Remember, brands are not built by companies; it's the customers that create them.
To have the level of commitment where they will always prefer you over other brands, follow the steps below:
Step 1: Create A Compelling Brand Image
If you’re starting out, consider the following questions:
As a brand, who are you? What values do you stand for?
What is the vision of your company?
Does your brand have any distinct qualities that other brands do not have?
What value do you want your customers to get from your brand?
These are just a handful of the questions that will guide you in developing your brand identity. Keep in mind that if the image your brand projects is diluted and unclear, so will your brand equity be.
A bold, relevant, and authentic brand image is the most vital foundation for increasing recognition, as this will lead to increased sales, loyalty, and advocacy in the future.
Step 2: Identify Your Customers’ Why
After you’ve defined your brand, you will need to take a deeper look at your customers and their reasons for purchasing your product or service. What are the pain points and problems that they require assistance with?
If you can figure these out, you'll know just how to improve their purchasing experience.
To do so, discuss your consumers' goals and requirements with your team and consider what it will take to address them. Rather than making assumptions, you'll probably need to conduct extensive market research and send out surveys/questionnaires.
Devote the time to learn about your customer base so that you’ll have a far higher chance of establishing positive brand equity.
Step 3: Create Outstanding Products and a Memorable Customer Experience
No amount of good press or a thousand word-of-mouth praises can compensate for poor product quality or a bad customer experience. Amazing products or services and an enjoyable shopping experience must be the foundation of your brand equity. So, how does yours fare?
Consider and ask yourself or your team the following questions to upgrade the quality of your product or service:
Do our products or services help our customers with their issues?
Are they meeting or exceeding our customers’ expectations?
What can we do to make our customers happier?
What distinguishes our products from those of our competitors?
What do our competitors do better than us?
When it comes to your products or services, keep innovating. As for the customer experience you provide, see if you can do the following:
Make sure that your website, social media platforms, and other retailers are all consistent. Consistency in text, product imagery, price, and other factors contribute to brand impression and trust.
Add user-generated content and product reviews to help develop confidence in your brand and products. When customers read the positive opinion about your product or service from others, they will more likely feel a sense of trust and eventually purchase from your brand.
Ensure that your customers find it easy to explore and discover what they're searching for by optimizing your eCommerce store for conversions. Improve the user experience by optimizing website load speeds, reducing checkout time, and tweaking product descriptions, photos, and videos.
Step 4: Foster Your Relationship Through Brand Response
A relationship is always two-way. It’s never just you feeding everything to your consumers and not expecting any kind of feedback in return. Create a safe space for your customers by giving them platforms where they can discuss any of their concerns.
However, keep in mind that collecting and filing this input isn't enough. You have to demonstrate to your consumers that you respect and consider their input. Therefore, it's critical to prove to them how you've implemented changes based on their suggestions or concerns.
Doing this allows your brand to generate better products and provide better customer service. Consider this valuable information for market research straight from your clients' mouths to your boardroom. Furthermore, this will also create loyal consumers who feel your organization genuinely cares about them and wants to make them happy.
Building Growth With Brand Equity
There’s no mistaking it—effective brand equity is what the world’s most powerful brands have over their weaker competitors.
So, whatever stage your brand is at this very moment, understanding brand equity is critical. If you want loyal customers and a greater perceived value in the industry you’re in, you need to develop a favorable image in everyone’s minds.
Once you’ve accomplished this, your brand will strengthen, and you will experience authentic growth.