Building brand equity: increasing your value for long-term success
August 15, 2023
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
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!
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.
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.
Is your brand next? Get in touch with our team today.