Brand Equity - Why is It Essential For Long-Term Business Success?
If you're launching or running a new business, you've probably heard the term "brand equity" floating around. What exactly does it mean? Is it necessary for your business? If you want people to recognise your business and products, then brand equity is something you need to focus on.
For instance, when you think of sparkling water, you might instantly picture San Pellegrino or Perrier. Planning a weekend adventure? Brands like The North Face and Patagonia come to mind. Craving comfort food? Many people associate Ben & Jerry’s with indulgence and fun. These brands aren’t just selling products; they’ve built strong emotional connections with their audiences. That’s what brand equity is all about!
Now, think about your business. Does the brand identity, or name communicate the brand's meaning? Does your brand have any association with consumers? If not, then you need to develop brand equity for your business.
Branding for small businesses is essential. It makes the business recognisable.
What is Brand equity?
It simply refers to the value that the brand brings to the table. How do the consumers perceive your brand? A logo or a catchy slogan will not do the trick. By developing brand identity, you're incorporating a positive feeling, trust, and loyalty in the minds of the consumers. So, consumers should emotionally relate to your brand whenever they think about it.
If you want your business to be remembered, then you definitely need to develop brand equity.
Why does brand equity matter?
Brand equity is not something you can measure in a day. It is a long-term process. Businesses with strong brand equity are more resilient in tough times. If people know about your brand, they will continue to buy from you and trust you even when times are rough.
So, brand equity does matter a lot, especially for small businesses. Here's why exactly you should be investing in brand equity development.
- To get a trusted brand and repeated customers
- To make your brand recognisable and stand out from the crowd
- To connect emotionally with the consumers
- To get loyal customers and word-of-mouth marketing for business
- To stand strong in tough times and get business sales
What are the important elements of brand equity?
Are you on the path of creating unique brand equity for your business? Here are a few elements that make up strong brand equity. Let's break them down.
Brand awareness
People need to know about your business. If no one knows about your brand, you will not attract buyers. So, building awareness is the first step to creating brand equity. Get your name out into the market and let people know about you.
Brand loyalty
Once you've created a loyal customer base for your brand, they will stick with you no matter what. This is the magical part of brand equity. Make your brand trustworthy. When customers connect happiness and trust with your brand, they will keep coming back.
Perceive quality
If your product doesn't deliver what it promises, your business will lack brand equity. Hence, perceived quality makes all the difference. Make sure the customers associate the brand with value.
Brand experience
What do customers feel when they interact with your brand? Establish a positive, joyful, and valuable experience in their minds about your brand.
Brand associations
For successful brand equity, you need to inculcate a few adjectives, traits, and emotions in the customers' minds. Associations matter a lot.
Brand preference
Why should a customer pick your business over others? This is an important element of brand equity building.
To sum it up, brand equity is not a buzzword. It is important if you want a long-lasting business that stands the test of time. Are you struggling to establish a memorable brand?
DesignFox has a solution for you. Get a full suite of services to help your business develop brand identity and equity.
Let’s connect and create something amazing together!
