5 Ways to Grow Your Business Using Brand Equity

Your brand equity is impacting your business right now, whether you know it or not. What can you do about it? A lot.

Simply put, brand equity is how well-known your brand is to your customer, what it’s known for, and how they feel about it. Many factors shape your brand equity, and collectively determine the value of your brand. It’s time to harness the power of your brand equity and increase the value of your business. 

What is Brand Equity?

Before you can harness or grow your brand equity, it’s important to understand the four elements that are involved. 

Brand Awareness

Brand awareness is the degree to which people are aware of your brand. This is often built through longevity, reputation, ubiquity, and advertising efforts. For these, there are no shortcuts. 

Other factors such as a memorable name, distinct logo, or catchy tagline can be more easily created. Are these elements of your banding easy to recognize and recall?

example of building brand equity through brand awareness | Peak Ed Designs
No words are necessary, you know what those golden arches mean. Capturing that kind of brand awareness is not always realistic, but consistent branding efforts can move the needle for all businesses. 

Brand Distinction

What differentiates you from your competitors in the eyes of customers? What unique value do you bring? What adjectives would customers intuitively associate with your brand? Are you the luxury option? The cheap one? The easy, fancy, or nostalgic alternative? Are you the underdog? The bare bones brand? The one with the best service? These perceptions go a long way toward defining your brand. 

Perceived Quality

How does the customer regard the quality of your brand? This can be based on experience, hearsay, or simply assumptions based on your branding. Perceptions do not always match reality, but they do form your brand equity. 

Every interaction a customer has with your brand, be it a purchase, a customer service call, or simply an exposure to your logo has an impact on their assessment of your brand’s quality. 

Brand Loyalty

Have you ever noticed that some brands have a massive degree of customer loyalty? Their customers not only purchase their goods or services, but do so to the exclusion of all others, and are happy to tell you about it (even if you don’t ask). This type of brand loyalty is a huge asset and a great contributor to brand equity. 

5 Ways to Grow Your Business by Harnessing Brand Equity

Understanding your brand equity is the