“Brand equity is a phrase used in the marketing industry which describes the value of having a well-known brand name…”
Boy, was Shakespeare wrong when he said: “What’s in a name?” ! In this ever-growing and fast paced world of start-ups, everything from the logo colors to the product you sell determines the reach of your brand. To stand out in the clutter of companies in the market, you need to carefully assess the image of your brand that you’d like to put across to your customers.
Brand equity, in the most basic sense, is a brand asset. Wikipedia says,
“Brand equity is a phrase used in the marketing industry which describes the value of having a well-known brand name, based on the idea that the owner of a well-known brand name can generate more money from products with that brand name than from products with a less well known name, as consumers believe that a product with a well-known name is better than products with less well-known names.“
Woah! What? Yes, okay that is a lot of words in a single sentence. Let’s make it easier.
Whenever you have a query or need an answer to a question that nobody around you knows, what is the first thing you do? You, as the term goes, “Google It!”. This in itself explains how important a brand name is. What is originally the name of the search engine has now spanned of as a term on its own.
The brand reach or brand awareness of Google makes this possible. In fact, Google has been named “World’s Most Valuable Brand”, for the second time in three years. [Source: http://fortune.com/2016/06/08/worlds-most-valuable-brands/]
It’d be pretty hard to find someone using the internet, with no knowledge of Google.
Brand equity metrics helps measure the value of a brand. When we say ‘brand’, we mean the name, logo, image, and the general idea that the customer has in mind of said brand. Starting from scratch, any brand can up their brand equity by remaining true to their words. Keep in mind, consumers value the smallest things like packaging and delivery of your product, along with the solution your product provides them. If a customer finds a brand worthy of their trust, chances are they will remain constantly loyal to them and select their product over that of a competitor. (With careful thinking of course!)
As a brand owner, if you can stick to your word and deliver what you mean, chances are you will have your brand name increased with the most trust-worthy way of marketing:word of mouth!
Now you know what Brand Equity is. Here’re some foolproof ways to increase it.
1.Make your product/service amazing
This one’s a no-brainer. When your product gives a perfect solution to a common issue, people tend to hold on and remember your brand. Amazon does this very same thing. With an endless category of items available on their platform, they have recently added household items to their departments. Everything from the common toilet cleaner to exotic tea flavors is now just a click away! Might explain why Amazon is #12 on the Forbes list of Most Valuable Brands.
2.Know where you stand
In today’s market of innovation and competition, many brands provide the same solution but how they differ is what matters. Know your position in the global market and study how you differ from your competitors. Keep track of the changes in your market and strategize to adapt to it.
3. Create brand identifiers
Sounds confusing. But really simple. Add something to your brand, that will act as an identifier across the globe.
Chances are, even if you don’t know Arabic, you recognize this as the McDonald’s logo. The iconic yellow M has become a trademark and an asset for the billion-dollar multi-chain. This logo on a counter makes people want to get their hands on the yummy Big Mac, even if they essentially cannot read the name. Helps that their burgers are yummy too!
4. Making customers your friends
When you serve an individual and you serve them well, chances are you will receive praise by them on their online reviews or when they brag of your products to friends. In the same way, when they face an error or issue they don’t like, customers can spread ill-word about your brand. The best thing to comfort your customer is to show concern. Apologize and hear out their issues and if possible, provide an incentive for the inconvenience caused.
Many restaurants have now been following this trend. Customers rave and rage about everything from the service, ambiance to the food served in a square bowl. Zomato is the trending platform for customer reviews in India currently. And what makes it even better is the restaurant owner’s listening in and personally receiving every review posted. If an unhappy customer whines about the service on the platform, many vendors now politely ask them what was the issue faced and how they would like their service to be improved.
In short?Happy customers=Happy business!