Brand equity is described as a measurement of brand value based on widespread customer perception and experiences. With high brand equity, companies charge a premium for their products.
When defining brand equity, compare your brand characteristics with a generic-brand product of similar features and quality. If their brand is better known, more trustworthy, and easily recognizable, their products or services will have a price tag to match.
The usual definition of brand equity identifies the value of positive qualities in companies. Let’s take Apple, for example. Apple’s well-known name and customer loyalty are directly linked to its high brand equity. Many Apple products are perceived as prestigious, user-friendly, and well-made. Therefore, Apple’s annual revenue supersedes that of its competitors. Also, Apple’s flagship product (the iPhone) is relatively pricier when compared to other mobile devices.
Obviously, building a reputation requires the company to deliver quality products and excellent service. Still, over time, customers are likely to choose the brand even if similar products are available. This is because of that built-in trust and previous positive experiences.
You understand the definition of brand equity. You also know the difference between negative and positive equity. Now, let’s break down the process of how to build brand equity for your company.
Since brand equity stems from customer connections, the process to increase it requires nurturing those encounters into a solid relationship.
First off, brand awareness plays a vital role in a company’s brand equity. The more people aware of your brand, the bigger the pool of prospective customers.
Eventually, awareness is likely to evolve into preference. By continuing to deliver on your promises and building on the positive experiences, brand loyalty should strengthen as well.
If you can excel in your marketplace for multiple years, you can expect certain brand associations to develop around your company. People will perceive you as a reliable provider of products and view your selection as superior.
Building brand equity is a long and challenging process that requires delivering top-quality services and products and deeply understanding your audience.
At LeadJig, we provide financial advisor marketing tools that will help you boost your brand equity. With over 2,500 advisors nationwide utilizing our product, you know LeadJig has the capabilities you need to propel your practice to the next level. Request a demo to learn more about our process today!