Imagine that there are two packages of chips in front of you – Lay’s and an unknown brand. Which pack will you choose? Most likely, the Lay’s brand, because you know what to expect from this product. You have formed this opinion because the manufacturer works on brand equity.
The article explains what brand equity is, how to evaluate it and create it to increase the chances of repeating the success of famous companies.
What is brand equity
Brand equity is a set of characteristics how to build phone number list and associations that increase the value of a company’s products. The value is determined not by the quality or price of the product, but by the customers’ perception of the brand itself and their trust in it.
According to statistics, 60% of people will prefer a product from a company they are familiar with, which is why brand equity has a lot of weight in business development. By increasing recognition and building trust with the audience, you can get ahead of your competitors and ensure a steady flow of customers.
A cup from a coffee shop chain whose name is known to almost everyone, thanks to proper brand management.
Recognizability
To make a brand and its products easy to remember, recognize and distinguish from competitors, it is important to create an identity and develop a brand strategy .
There are 3 levels of recognition: prompted, spontaneous and top of mind. All companies strive for the top of mind level of recognition – this is when customers mark the brand as a leader in a certain category of goods. For example, electric cars – Tesla, sweet black drink – CocaCola, etc. Customers do not even need to be shown the logo.
Positioning
In a highly competitive market, offering a quality product or service is a given. To make sure your brand is remembered, you need to ginza metrics bridges the gap between search and social analytics build a positioning. To do this, think through the brand philosophy, its mission, and develop a tone of voice. Ideally, the brand will be associated with a certain image, emotions, or feelings in the minds of the target audience.
For example, Prostokvashino milk evokes associations with a village house and coziness, while Disney is about magic, happiness and fun.
Perception of quality
When a client is confident in the quality of a product, he will be more willing to recommend it, try new products, and most importantly, not go to a competitor. At the same time, not only the product itself should be of high quality, but also the service, because even the best product will not be bought again if the client was treated rudely when contacting support.
High quality of goods or services is the best ge lists way to improve the perception of quality and strengthen brand equity. To improve the effect, you can show the audience a video of the production or service process, talk about certificates of conformity and take part in industry competitions.
Trust
There are many ways to gain customer trust. One of the simplest but most effective is reviews . The more positive reviews a brand has, the higher the level of trust it has, even for people who encounter it for the first time.
In addition to reviews, you can use associations with other brands to increase the level of trust. For example, if you provide services and your client is a large bank, tell about your cooperation with it. This will increase the importance of the company in the eyes of customers.
Those who cannot boast of famous clients can order advertising from influencers. The audience of such people trusts their opinions and recommendations, and therefore will remember your brand from a positive side.
All elements that make up brand equity work only in combination.
Why Work on Brand Equity
There are 7 reasons why you should start working on brand equity from the moment your company is founded:
Attracting new customers . The more people know about your brand and love it, the more new customers will come through word of mouth.
Strengthening user trust . It directly affects the number of repeat sales and LTV (customer lifetime value).
Differentiation from competitors . Memorable names, identity, unique product design – all this helps to stand out, which is important for a highly competitive market.
Increased sales . It does not happen immediately, but the increase in profit is proportional to the increase in brand equity.
The ability to raise prices for goods and services . Buyers are often willing to overpay for a strong brand, even if there are similar products on the market at a lower price.
Strengthening the emotional connection with the target audience . If customers are imbued with the mission and philosophy of the brand, this will greatly strengthen their loyalty.
Increased audience response .
How to Evaluate Brand Equity
Measuring brand equity is not an easy task, but without it, brand management will be impossible. Assessment methods include qualitative and quantitative parameters, and they are obtained using:
Sales analysis . Everything is simple here – the higher the company’s sales, the more recognizable its brand is and vice versa.
Measuring brand awareness . To do this, it is worth analyzing website traffic, brand queries in search engines, media mentions, social media activity, and advertising metrics. Awareness is inextricably linked to competitors, so it is worth studying not only your brand queries, but also the recognition of your competitors.
Customer Loyalty Scores :
The best way to determine customer loyalty is to analyze brand reviews and conduct a survey. The more people who participate in the survey, the better.
Standardized Method for Assessing Brand Equity MBE
MBE (Multi-dimensional consumer-based brand equity) is a standardized and reliable brand equity assessment methodology that is suitable for any company.
The MBE method is a survey in which the respondent is asked 10 questions. They are related to loyalty, perceived quality and awareness of the target audience.
