Building brand equity: increasing your value for long-term success

August 15, 2023

Firstly, we get that the term ‘brand equity’ can sound a little daunting. It sounds like a phrase one of those corporate Succession characters might spit out in an attempt to sound like the most suitable next successor. But brand equity is really just about your perceived value.

Think about it this way: Is it worth paying $10 for a tiny tub of ice cream when you could get two massive tubs for the same price? Somehow, the ingredients taste better in the tiny, expensive tub… don’t they? You can rely on the more expensive brand to deliver a better ice cream experience because you know a Kardashian eats it too, right? Well, maybe – or maybe the iced dessert brand with the heftier price just has better brand equity.

What is brand equity?

Brand equity is the value of your brand according to your audiences’ perception of it. At Taylor & Grace, we see that when a business knows what brand equity is (and how to strategically achieve it), their long-term success is often a thing of certainty rather than surprise. When your brand equity is positive, your business is:

Desirable and perceived as high quality
Easily recognisable and memorable
Worth staying loyal to and recommending to others

Is brand equity the same as brand value?

We can forgive you for thinking brand equity and brand value are twins – or at least close siblings – but they’re actually quite different. Brand value refers to the financial worth of your brand in terms of tangible assets, while brand equity is the perceived value your customers have with your brand.

So, what are the benefits of positive brand equity?

Profits: When customers love a brand, they’re willing to pay a premium for it (see the tiny ice cream analogy above). Often, this is the case even when a customer could buy practically the same thing from a competitor for much less money. If production costs are similar between two products, but the brand with the more positive equity can charge more, that means they receive a WAY better margin. Cha-ching!

Reputation: Strong brand equity means that your interactions with distributors, manufacturers, and investors will be infused with the magnetic aura of a valuable brand. Your reputable brand and happy customers become your allies when chatting with those outside your business, and your partners will easily recognise the benefits of doing business with you.

Customer loyalty: When you establish positive brand equity and consistently deliver exceptional value to customers, you’ll pave the way for powerful loyalty that can even resist the forces of competition and economic fluctuations. Plus, your fans will be more likely to recommend you to their mates. Yay!

How to build positive brand equity

Building brand equity involves delivering real value, forging authentic emotional connections, highlighting your strengths and maintaining consistency. By following these strategies, you can create loads of trust, loyalty, and positive associations that will elevate your brand value and help to drive your long-term success.

Be consistent

Building brand equity starts with consistently delivering value and maintaining high standards across all touchpoints. When customers know they can rely on your brand to meet their expectations, it fosters trust. Strive to exceed customer expectations, provide exceptional service, and consistently deliver on your promises.

Be human

Emotional connections can connect customers to your brand on a deeper level. But how can you create those connections? It’s all about building a brand story that resonates with your target audience’s values and emotions. Share stories, demonstrate authentic genuine empathy and create experiences that evoke positive emotions. The more customers feel emotionally connected to your brand, the more likely they are to become loyal fans and recommend it to others.

Be different

Identify what sets your brand apart from competitors and develop a unique value proposition. Whether it’s the best product features in town, innovative solutions, or a really cool, mission-driven approach, communicating your value helps customers see your brand as desirable and worth choosing over your competitors.

Let’s sell some tiny ice cream!🍦😉

If you’re ready to give your business the gift of positive brand equity but still feel unsure about where to start, why not turn to your favourite brand agency for a chat? At Taylor & Grace, we’ve helped companies of all shapes and sizes solidify their brands so that audiences can’t help but love, trust, and benefit from everything they have to offer.

Is your brand next? Get in touch with our team today.

It all starts with a chat