Four steps to build brand equity.

Posted by Anya Sleezer << back to blog

Last Updated on September 24, 2024

Brand equity is the level of credibility a brand has in the minds of its audience. The higher your company’s brand equity, the higher its value in customers’ eyes. This isn’t just some ethereal, nice-sounding notion that doesn’t have anything to do with the dollars and sense of business; customers are more loyal to brands with higher brand equity.

In fact, roughly 80% of customers won’t collaborate with, or purchase from, brands that they don’t trust. Nearly 90% plan to straight up ghost brands that breach their trust.

On the flip side, customers are seven times more likely to overlook the mistakes of a brand they like, and nine times more likely to try different products from them.

Brand equity doesn’t just help you make more money, it can help you spend less. After all, if your brand has a good reputation with your target customers, you can invest less on convicing them through advertising when you launch new products or services.

So, building your brand equity has tangible benefits to your bottom line. But let’s break brand equity down further. Brand equity is made up of two components:

Brand Awareness – Can your brand be easily identified by your audience? What values do consumers associate with the brand?
Brand Experience – What have been your target audiences’ experiences with your brand? Has your brand lived up to its claim?

Now that you understand what brand equity is and why it’s important, let’s focus on the really important topic: how to build it.

Four steps to building brand equity

Step 1: Build identity and awareness – Build awareness of your brand through the advertising channels your target customers are most likely to consume. Make sure that your customers recognize your brand and see it in the way you intend.
Step 2: Create meaning – What does your brand stand for? For instance, a company that’s genuinely committed to the environment in words and deeds will build loyalty from customers who support those values. The company can develop a greater brand meaning through word of mouth, positive direct customer experience, and targeted marketing.
Step 3: Earn loyalty – Never stop improving how your customers feel about your brand. Customers constantly make judgments about your brand’s quality, credibility, relevance and superiority to your competitors. Yes, customers are more loyal to brands with higher brand equity (see above), but they’re not going to forgive you forever. As the old saying goes: “Fool me once, shame on me. Fool me twice, shame on me.” Don’t force them to regret staying loyal to you.
Step 4: Maintain Relationships – Building a deeper bond with your customers is the most powerful, and challenging, thing to attain in branding. Once it happens, customers will continue purchasing from, and forming an attachment to, your brand. But they won’t just buy from you; they will champion you. They’ll recommend you to peers, follow you on social, participate in online chats, and basically be the best free advertising there is — brand ambassadors.

Building brand equity isn’t easy and it never takes a day off.

Let us help.

Level up your brand equity with Levo and build a brand you can be proud of — and your customers will be proud to support.

Anya Sleezer

Anya Sleezer is the owner of Levo, a full–service marketing agency, focused on helping companies from all industries who are concerned with their marketing results, traffic, branding, advertising, or websites.

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