Brand equity is the value that your customers place in your business. It’s the confidence they have when they think of your business. The more positive associations with your brand, the more customers will be willing to pay for it.
By increasing awareness, loyalty, quality, and distinction, you can grow and strengthen your value and equity. Let’s dive deeper into each of these components.
Components of brand equity
1. Awareness
If nobody knows about you and your business, it’s going to have less value. If there is a lack of awareness, there is an equal lack of value attributed to it. Don’t let your customers keep you a secret. Encourage them to share you and your services.
One way to build awareness is through a referral system. Build opportunities where your business can be in front of more people. Get your name out there. When you increase your awareness, you help increase your equity.
2. Distinction
What distinguishes you from your competitors? What makes you different than all the other businesses in the same niche? Chick-fil-A, for example, is known for its customer experience and speed. It is what makes them different from all the other fast-food chains.
If you want to build your value, you need to establish who you are. Show your distinction and what makes your business unique. Remember that it’s not enough that people know your business or recognize your logo.
3. Quality
How your customers perceive the quality of your products and services may make or break your brand equity. This perception of product quality and customer service can impact their overall experience. You need to establish the quality and the value that you are providing your audience. Ensure that every customer receives high-quality products and services. Each interaction and engagement has unsurpassed value.
4. Loyalty
Most of the time, people who are loyal are most likely to buy the next product that it offers. Loyalty is when people can connect with the product or the business. Nike, for example, has created a loyal group of followers with their mantra, “Just do it”. People who want to be fit and those who care about the people around them and their environment easily connect with this message.
Conclusion
Although the specifics may differ from business to business, all businesses benefit from building their brand by increasing awareness, distinction, quality, and loyalty. It’s important to drive customer loyalty and retention through quality, distinction, and positive associations. Ultimately, we all have the same goal: to build our value so that customers have an inherent trust in our brand.
So my challenge for you is to look at these four areas of your business and your brand. Start building your brand equity by driving positive changes within your organization and working towards your company’s goals.
