If you’ve run your own business for a while now, you probably already know how important it is to have a strong brand. Logos, packaging, experience—all these things play into your brand and how useful it is to you. Specifically, you’ll want to focus on brand equity, which is the value consumers derive from business with a strong presence. While not necessarily tangible in nature, it does have tangible benefits to your company and your bottom line. In this article, we’ll focus on why your company needs brand equity.
What is brand equity?
We first need to define what brand equity really means. The basic definition is that brand equity is the perceived value of your brand by your customer. In practice, this tells us that customers assign a specific value to your brand itself—not just the product it’s tied to. Brand equity is the reason that large name brands can charge more for the same product as the generic version. If your customer believes your brand has value all on its own, they’ll be willing to pay more to get it instead of one of your competitors.
Why is brand equity important?
Why does your company need brand equity? The answer is actually much simpler than you would think. Try to picture all your competitors’ products lined up next to your product. If every one of you charges the same price for your product, how does the customer know who to choose? This is where brand equity comes in. The more brand equity you have, the more influence you have on your customer to choose your brand. If you want to make it in a crowded market full of competitors, brand equity is what can separate you from the pack.
How do you build brand equity?
So, now that we know how important brand equity is, how do we build it? There are multiple ways you can do this.
- Positive experiences related to your brand are crucial for gaining brand equity. This doesn’t just mean your product has to do what it says it does. It also means you must go out of your way to create interesting or memorable experiences for your customers to latch onto and remember when they’re staring down all your competitors.
- Brand focused marketing can also build brand equity. This is marketing that focuses more on why you do what you do, rather than how you do it. People want a brand they can trust, so the more open and honest you are about your goals, the more those people will come to rely on your brand.
- Staying consistent with your message is the key to success. Changing up your core values too often can make customers uneasy about putting their trust and money into your brand.
We understand how important brand equity is here at CGS Premier; it’s why we provide our mobile experiential trucks. Our products make it easy for you to build your brand equity in a way that makes sense for your company.