Have you ever been forced to make a decision between two different brands that offer a similar product?
You chose one brand over the other for good reason, right?
That reasoning is the essence of brand equity.
Brand equity is the value of a brand from the consumer’s perspective, compared to a brand with a similar product or service.
If your perception of a brand is that of a negative connotation, chances are you’re going to opt for the competitor and leave the other product on the shelf.
Brand equity is all about what the customer thinks.
Are the products safe? Does it actually do what it’s supposed to? Do I trust the company?
All of these questions help customers make decisions on what brands to choose.
Coke or Pepsi? Sony or Xbox? Ferrari or Lamborghini?
Throughout any given day we interact with thousands of brands. Branding has become a huge part of society. From sport arenas to billboards and the internet, we learn to recognize our favorite brands at an early age.
Brands like Google, Apple, and Amazon have all become household names.
Need to search for something on the internet? Just Google it.
They have even changed the way we use the word “search”. Instead, we simply replaced it with “Google”.
Need directions, questions, answers, pictures, videos? You name it, Google has it all. They have solidified the public’s perception of them as a reliable company to receive a wealth of information.
Each of these companies all have one thing in common with Google. They provide a product that is trusted and relied on by their customers.
Maintaining a good relationship with your customers is an essential way to boost your brand equity. Customers want companies who are passionate about their products and care about the customer’s satisfaction.
A common trend among consumers is to read reviews before buying a product.
Reviews offer customers insight into what they are buying before they open their wallet and try the product for the first time. This is a big deciding factor on the internet.
No one wants to buy products from a company that has received nothing but negative reviews, which brings me to another point.
Companies must be confident about their products and put nothing but their best foot forward at all times.
A one time mistake can result in a negative public perception about that brand for life. This results in damaging your brand equity and can seriously impact business.
You keep hearing about how important brand equity is for your company. But what is it and how do you measure it? We’re telling you exactly what you need to know
Now that we have an understanding the basics of what brand equity is, how do you measure it?
Keys to Measuring Brand Equity
The first key to measuring brand equity is to determine what sets your brand apart from the competition.
What is different about your company or product that gives you an advantage over competitors? Do you offer something different? Do you stand for something other than your brand?
Standing for something other than your brand is a big factor for a lot of consumers.
Often times consumers will feel better about buying a product if they know part of their proceeds will go to a good cause.
By making donations to charities you can connect to your customers on a more personal level and give back to those in need.
Another important key to measuring brand equity is understanding the consumer’s knowledge about your product.
If a potential customer hears good things about a product, the chances of them buying said product are highly probable. You want customers to feel good about purchasing something.
That’s how you keep them coming back.
The second key to measuring brand equity is to analyze your products accessibility.
Can customers find your product in a variety of places or do they have to travel a great distance to get it? Is it going to take too long for them to get the product if they order it online?
This could very well be a deciding factor between you and your competitor.
Make sure you analyze how easily accessible your product is in relation to your competition.
Understanding the knowledge of your customers is a way to gauge the popularity of your product.
It is also equally as important to do adequate research in your industry.
Researching the industry can simply be done by heading to social media and seeing what the customer is saying.
What are they saying about your brand? Do they have certain needs or wants that aren’t being met? How can you help?
Social media helps build your brand equity by interacting with customers and building a positive relationship which can aid them in becoming loyal consumers. It also helps develop new strategies and products that your company can use to get ahead of the game.
Trending topics are also a great way to reach a wider public audience. Find out what’s trending online and see how you can use it to improve your brand equity.
One of the most important tips to maintain your brand’s equity is to distribute surveys amongst your customers.
You can ask questions like, are you satisfied with the product? What are ways that we can improve? What products would you like to see in the future?
By having customers complete surveys you are able to directly collect valuable information of your choosing.
Customers can provide invaluable information that will help you improve customer satisfaction.
Lastly, collecting financial data like sales, revenue and net worth are all principal factors when measuring brand equity.
These numbers are correlated with the publics perception of your brand.
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Financial data will also help measure brand equity before and after rebranding campaigns. Numbers can be compared and contrasted which will give you more insight into the success of your brand.
You can take advantage of these opportunities and use them within your company. Just remember these tips and you’ll succeed.
So get out there and build your brand into the next Google or Amazon.
We’re counting on you!
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