The 4 Critical Elements of Brand Equity
Brand equity is the value and power that your brand holds in the mind of your customers. Many examples of excellent brand equity exist in our economy, such as Facebook, which has been consistent where most users don't look at other social media platforms. Take Apple, probably the best of all, as the loyalty and demand are higher than other similar brands. And then there is Coca-Cola, which represents itself as more than just beverages; it's a symbolic representation of positive experiences, history, and even U.S. culture.
Without laboring the point, as we could go on for pages about the concept of brand equity, here are four concepts, in brief, regarding brand equity:
- Brand Awareness: This is how well-known the brand is to consumers. Brands with high value will be ones that a customer quickly remembers. Their name, logo, and taglines are easy to recall. Think of a brand that you adore. That brand has high equity if it's foremost in your mind.
- Brand Experience: Brands need to stand out from the crowd. Does your brand differentiate itself from others, and what unique value does it bring to your customers? Each distinctive element your customer sees in your brand compared to others will add to your brand equity.
- Perceived Quality: Many elements come into play when your customer makes their judgment about quality. A customer builds this perception based on numerous experiences within your brand. Each interaction they have can impact the perceived value of the product or service offered, from design to customer service.
- Brand Loyalty: This is one of the most desired elements for building your brand equity because, effectively, it means your customer is your biggest fan. Not only will they buy from you again, but some of them will become your brand champions, write glowing testimonials and offer you as a recommendation to friends.
If you are just starting your business and need guidance, or are an established business and need a brand refresh, we are here for you.