(English - 2 min reading)
According to Google it is, “The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself".
When people interact with your brand, they form opinions, emotions, and experiences about your brand, which are the values generated by your brand. All this creates brand equity.
The importance of brand equity lies in that it creates competitive benefits that will drive profitable growth, and some of these benefits can range from the ability to charge a premium to a product, to provide security from unpredictable market conditions. Therefore, it is essential that brands have a forward thinking approach, acknowledging the added value of positive brand equity.
As companies grow, they should pay close attention to their internal communication due to the risk of brand values diluting with time. To prevent this strengthening its internal brand culture and building brand ambassadors out of their employees by creative positive associations, like being a socially responsible and ethical business can greatly improve brand equity growth.
Your brand's equity is largely determined by customers. So, it is important to establish and maintain good relationships with your target segments.
Be clear about your vision, mission and brand values, while keeping in mind that consistency and coherence are essential to the success of a brand. "What they say should be what they do".
Nowadays consumers are able to identify when brands are not true to their values. To put this into context when consumers meet employees, they can tell whether or not the employee is dedicated to the brand they represent, or the product they are selling almost immediately.
There are several ways to maximize a company's positive brand equity. From my professional point of view, here are the four steps by which every brand should at the very least maintain its positive brand equity continuously:
- Awareness: The brand is presented in a way that attracts the target audience.
- Recognition: Customers get to know the brand and are able to recognize it.
- Test: Once they know what the brand is, they test it.
- Preference: A brand that generates positive consumer experiences becomes preferred by the consumer.
Users become loyal to the brand after a series of good experiences, not only recommending it to others, but buying and using it exclusively. Because they highly value it, all products associated with it benefit from its positive impact.
Brand equity, then, is the sum of tangible and intangible attributes attached to a brand that enable it to be considered superior and to command a premium price.
In sum, all interactions and interactions with audiences will generate value for your brand, so it is your responsibility to ensure that value remains positive.
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How the lack of brand awareness affects your company
Nurture your brand and keep your customers satisfied