Before we get to creating brand equity, understanding what brand equity is important. Brand equity can be defined as the Value premium that brands can charge their consumers or customers as opposed to their generic counterparts. This is not necessarily to do with the product or service itself being better than their counter parts but rather it is to do with the fact that the brand itself holds a certain perception in the minds of consumer which gives the brand the upper hand or that added leverage.
A simple example would be purchasing a product which is branded as opposed to the same product in its generic form. They might have different features which would make branded variant expensive but the cost of making the branded product would not exceed the generic variant by a great amount. But the price difference in the open market would be because of the brand value, perception and the command a certain brand holds in the market as opposed to their generic or branded competition. This, in short, is brand equity.
Brand equity has the following components:
- Brand Loyalty
- Customer satisfaction
- Perceived quality of your service or product
- Associations with your brand
- Positioning versus your competition
- Relationships in trade
- Trademarks, copyrights, patents, etc.
Basically this means that brand equity is a total of all your assets, stake in the market, perception, service etc. As much as it is about an overall company’s position in the market, it’s the small things that create a great perception in the mind of customers. From great customer service to products which fill a gap in the consumers life. From great employees to ethical business practices during alliances and trade, all of these small aspects are in fact the epitome of building equity.
Brand equity is a mix of actual and notional assets and takes a long time to amass. With a long period of time, companies and brands create offerings, products, services for their consumers. During this time, connections with consumers are built over a period of time. This bond of dependency also turns into emotional ties which, eventually helps in growth of the brand equity.
Solving customers problems, timely resolution of their issues, compensation of any grievances they have had all come under the roof of great customer experience. Since the customer service personnel are the customer facing team, a great customer service experience becomes your most important filter when it comes to customer perception and eventually brand equity.
A brand should also invest time and effort in creating, sharing and connecting the story of their product with their customers. Eventually, the world loves a great story which has emotion and truth which people can relate to.
Great advertising is also a key metric for great brand equity. Creating a position for your self in the market and sticking with it as a fixated latent mental space for all consumers creates a long term union both emotionally and mentally between a brand and the consumers.
Eventually maybe some of those same consumers aspire to be a part of the brand as employees. Hence it is equally important to drive the same ethics, belief’s and visions of the brand into each and every employee. If the employees are happy with an aspirational brand that they work for, that’s how a brand reaches new heights. As the saying goes, ‘A chain is only as strong as its weakest link’!
In closing, it can be said that just like Rome, brand equity cannot be built in a day. It requires effort, time, patience, perseverance and the collective effort of the entire organization when it comes to creating and increasing brand equity.
Source Links –