Do you ever wonder how all the big wig girl bosses charge an arm and a leg for their services and digital products? Well I’ll tell you how.
It’s this little BIG thing called BRAND EQUITY, where one’s target audiences recognizes, appreciates and is loyal to a particular brand and finds enough value and benefit in the brand to pay a premium cost for services and products.
The American Marketing Association defines brand equity as,
“The value of a brand. From a consumer perspective, brand equity is based on consumer attitudes about positive brand attributes and favorable consequences of brand use.”
Further, David Aaker defines it as,
“... a set of assets and liabilities linked to a brand, it’s name and symbol, that adds to or subtracts from the value provided by a product or service.
I LOVE THAT!
Let me give you a few reasons why you want to build brand equity.
- Greater customer loyalty is the “sweet spot” of having brand equity, which inspires the next two points.
- Positive brand equity means financial gain and benefit for your business.
- The more brand equity you gain, acceptance of premium pricing elevates.
- Also, the more brand equity you have, the broader you can stretch your brand andleverage that equity in new offerings.
HOW DO YOU BUILD IT?
Glad you asked! Brand equity is built by consumers going through the different stages of developing a brand connection or relationship. It grows as a consumer goes from being aware of the brand to being loyal to the brand.
++Brand Awareness - the probability of consumers recognizing the existence of a brand.
++Brand Recognition - the consumer’s ability to accurately identify a brand’s service or product and know what it offers
++Brand Trial - the consumer has built enough trust based off of perception to try the brand.
++Brand Preferences - the consumer likes the brand and purchases from the brand again, starting to build an emotional connection based off of personal experience in conjunction with previous perceptions of the brand and the brand delivering on those perceptions (or brand promises).
++Brand Loyalty - the consumer demands the brand, and will not accept a substitute in it's place.
And now at this point you have what is called BRAND EQUITY!! Don’t hold your breath now!! The work isn’t done. Now you have to maintain that brand equity by keeping to your brand promises and continuing to deliver the brand experience that your consumers want and expect. We’ll be covering that in the last part of this branding foundations series.
If you haven’t been following along I encourage you to read through the previous posts in this series and then sign up for my newsletter below and in the THANK YOU box afterwards will be links to the worksheets I’ve created to help you build your brand’s foundation!