What is Brand Equity?
Brand equity is defined as the added value a brand receives beyond the functionality of its product or service. Brands with high equity have a solid reputation and loyal customer base. There are other key elements that contribute to brand equity which can motivate consumers to pick a certain brand over its competitors.
Brands can be associated with certain feelings or thoughts that influence how consumers perceive the brand. These associations can lead to positive sentiment. For example, Canva associates its brand with the idea that anyone can create visually compelling designs by providing easy, customizable templates.
A loyal customer base and high brand equity are closely tied together. Building loyal audiences can contribute to a positive brand reputation and provide added value. Brands can build loyalty with rewards programs, such as providing discounts or access to items before the general public.
Brand awareness, or how well-known and recognizable a brand is to its audience, can help your brand stand out from the crowd.
And brand awareness is tied to brand consistency. Whether you are creating social media content that aligns with your brand’s messaging, developing new collateral materials or giving a presentation at a conference, recognizable attributes of your brand, such as color schemes or tone of voice, separate your brand from others. These awareness builders amplify the unique qualities of your brand, and when coupled with a personalized marketing strategy, can increase how familiar audiences are with it.
Maintaining brand equity is important for building loyal audiences and differentiating the company from its competition. Improving brand equity is more than just providing quality products or services. You need a strong market presence and a focus on customer loyalty.
Reach out to HMA to learn how you can improve brand equity and add value to your brand.