8 Proven Ways To Build Brand Equity

Introduction

Brand equity is the extra value a well-known brand name adds to a product. It is based on the brand’s reputation and popularity and is important for creating customer loyalty and impacting pricing. Businesses should prioritize it in their strategy and marketing efforts.

Companies like Nike, Google, Amazon, and Starbucks, who possess strong brand equity, have the advantage of being able to charge more for their products or services, attract and retain loyal customers, and easily increase their market share. On the other hand, businesses with poor brand equity and a low perceived quality may struggle with decreased revenue and a damaged reputation.

How to build brand equity in 8 steps 

Building brand equity begins with consumers. To acquire it and develop it, the following steps can be taken:

1. Create and adhere to your core brand values

Writing down a set of core values is the first step in building a brand and, afterwards, its brand equity. A brand’s beliefs and values are based on these fundamentals. Teamwork, customer satisfaction, the user experience, and interaction are all included in the brand values.

A value proposition summarizes the brand’s values. The team needs to give answer to a few questions about the brand before they can put together your value proposition. Like, what is important to the company, its founder, and its employees? What does the brand stand for? Does the company know its competitors and customers well?

Stay true to your value proposition and structure the remaining steps around it once it is ready.

2. Create awareness 

A brand gains popularity when people have positive impressions and experiences with it. This is known as increasing brand awareness, and it raises the value of the brand.

HubSpot notes that consumer trust in brands that play their cards right eventually follows awareness. But raising awareness isn’t just a never-ending process; it also involves a number of steps, like adhering to the values of the brand and engaging customers on social media even when they aren’t looking for a sale.

Creating free content, offering a freemium service model, funding events, or beginning a podcast are other ways to raise awareness. However, the degree to which your brand connects with customers is also conditional on whether you are raising awareness among the appropriate customers.

3. Tell your brand story

A brand must also convey their values to customers through a brand story once it has determined what it stands for. On their websites, brands can literally tell their stories, but they can also incorporate parts of that story into other brand assets like social media posts or email outreach.

People naturally like to tell stories, and brands that do this well are the ones that build genuine relationships with their customers. According to Canva, this helps build a solid basis for more equity.

4. Be consistent 

Consistency is key when it comes to building brand equity. By maintaining consistent messaging, design, and branding across all marketing materials and customer interactions, you create a recognizable and memorable brand that customers can trust.

Consistency helps to establish brand recognition, increase brand loyalty, and create a sense of reliability and trustworthiness. This, in turn, helps to build brand equity over time, as customers become more aware with your brand and associate it with positive attributes.

Additionally, consistent messaging, design and branding also helps to create a harmonious and cohesive brand identity, making it easier for customers to understand and connect with your brand.

5. Strive for quality always 

By delivering high-quality products or services that consistently meet or exceed customer expectations, businesses can establish a positive reputation and earn the trust of their customers. This, in turn, can lead to increased customer loyalty, repeat business, and positive word-of-mouth recommendations.

A company that always provides high-quality goods or services can also set itself apart from its competitors. Customers are more likely to choose a business that they sense is offering superior quality over one that does not. Increased market share and a competitive advantage in the market may result from this.

Companies can also cut costs and increase operational efficiency by concentrating on quality. Products or services of high quality can often be delivered with less effort and less rework, which can save money.

6. Create positive brand reputation 

A positive reputation can attract new customers, retain current ones, and increase brand loyalty. One of the most effective ways to build a positive reputation is through excellent customer service. Providing exceptional service to customers can ensure their satisfaction and lead to positive word-of-mouth recommendations.

In addition, establishing a positive reputation necessitates addressing and resolving any issues or complaints from customers. Customers want their issues settled quickly and effectively. It is possible to turn a negative circumstance into a positive one if a business is able to handle complaints professionally and promptly. This proves to customers that the business values customer satisfaction and is willing to do anything to guarantee it.

It is important to observe and reply to online reviews and feedback in this digital age. Negative reviews can damage a business’s reputation, but if handled properly, they can also serve as a chance to demonstrate to customers that the business is committed to providing the best service possible.

7. Be unique and different 

By differentiating the brand, a company can project a unique and distinct image in the minds of customers. Brand equity can rise as a direct consequence of this, as can customer loyalty and relationships. It can be done in a variety of ways, such as by emphasizing distinctive product or service features and benefits, highlighting the brand’s mission and values, or employing a distinct brand voice and messaging.

It is essential for a brand to consistently communicate and reinforce the unique value proposition of the brand throughout all marketing and branding efforts in order to effectively differentiate itself from its competitors and target audience.

8. Keep an active community 

Hosting events and activities, starting online forums and groups, and encouraging customer participation and feedback are all ways to foster a sense of community among customers. Customers will feel more connected to the brand and be more likely to recommend it to others if you cultivate a sense of belonging among them.

In a similar vein, cultivating a sense of community among workers can result in improved customer service and a more positive brand image, as well as increased levels of motivation and job satisfaction. Regular team-building activities, open lines of communication, and a culture of cooperation and support are all ways to accomplish this.

In general, a thriving community encourages loyalty and commitment, which may result in increased brand advocacy and awareness.

Conclusion 

Building brand equity is similar to building human relationships because it is based on the experience and perception of customers. From the first interaction to every interaction, communication is essential. Dove, Amazon, and Netflix are just a few of the well-known consumer brands.

The process of establishing brand equity can be lengthy and costly. On your journey to gaining public loyalty and trust, these eight strategies are excellent places to start.

Keep in mind the voices and needs of your target audience as you test these strategies. Listening to your customers is the first step in developing strong emotional bonds with them.

Frequently Asked Questions