Branding Equity: What It Is and How to Build ItCarl is a business owner who is experiencing firsthand just how much the internet has revolutionized the consumer buying process. It used to be that a simple look at your products' features was enough to sway consumers to make a purchase. But now, it's all about the brand. In fact, Carl's brand has become his most valuable asset. That is why he is doing all that he can to build his brand equity and distinguish himself from his competition.
What is brand equity?
Brand equity is what your business is worth without its inventory. Or, more simply stated, it's about how valuable your brand is in the eyes of consumers and the relationships that you have with your customers.
To build brand equity, you must leave a lasting, positive impression regarding your brand in the minds of consumers. Your products and services and their demand and usefulness, of course, play a role in how well you can satisfy your customers, but they alone do not generate brand equity.
Top Tips for Using Marketing to Build Brand Equity
The steps outlined below are not in any particular order. They are three examples of essential steps that Carl has used to build brand equity, and each of them is an ongoing process. You don't build brand equity overnight, and then suddenly get to take a vacation. You must work at creating this type of equity on a daily basis just like Carl has done.
1. Release Information About a New Product
You can have a quality product that you know consumers will want to purchase, but they have to know about it first. This is why you should always distribute information about your products. Whether it be creating a product brochure or a how-to guide that goes into the packaging of a new product, you will want to provide as much detail as possible. In fact, Carl has found that the more in-depth and more detailed his brochures and how-to guides are, the more engaged his customers are.
2. Monitor Trends and Perform a Competitive Analysis
Building brand equity means you can adapt to changes as they occur, especially changes related to new trends that hit the marketplace. The best way to monitor trends is to keep a close eye on Google searches. You will also want to perform a competitive analysis to see how your competitors are keeping up with the latest trends. Chances are, you can benefit from employing many of the same tactics your competitors are using. Carl, for example, performed a competitive analysis and discovered three of his competitors were enjoying an increase in sales by offering seasonal discounts. Carl then went to a local print shop and had 1,000 business cards printed with a discount code on the back. Over the period of six months, the discount generated an eight percent increase in his sales.
3. Collect, Use and Distribute Customer Feedback
Lastly, since brand equity is all about how you appear in the eyes and minds of consumers, you will want to use their feedback and respond to it appropriately. Carl publishes his customers' feedback in the brochures and how-to guides he creates. Customer testimonials have been proven to be a huge asset in generating sales.