The textbook definition of brand equity is the 'value that customers perceive of your brand.' Unfortunately, even if your team creates a wonderful product, but does not connect with the right people, you will not see the success you want. Having a brand that is strategically positioned to connect with the right people and adheres to your brand promises will help you increase your brand equity and profit.
The textbook definition of brand equity is the 'value that customers perceive of your brand.' Unfortunately, even if your team creates a wonderful product, but does not connect with the right people, you will not see the success you want. Having a brand that is strategically positioned to connect with the right people and adheres to your brand promises will help you increase your brand equity and profit.
When it comes to brand equity, there are two common misconceptions.
First, brand equity is the same as [than brand awareness. Take a second and think about every restaurant in your area. How many of those restaurants would you say you are loyal to? Probably not all of them. Just because someone is aware of your brand does not mean they are loyal. Awareness is one of the foundational ingredients to building brand equity, but it is not the end all be all.
And the second, more common misconception is that brand equity happens overnight. Building brand equity takes time, hard work, and consistency.
The first step in building brand equity is defining your brand through brand strategy. Your brand strategy should be able to answer the following questions:
By centering your brand on strategy and knowing the above questions, you can create a brand that will last and connect with your customers. Learn more about what makes up brand strategy here.
What most people picture when they think of branding are the visual components of your brand’s identity. Assets like logos, patterns, and photography, are key parts of building how the community perceives your business. Instead of making decisions based on how something looks, at Hardy, we develop brand identities that strengthen the strategy.
For companies going through a brand refresh, it is always a good idea to survey current customers to get a pulse on the brand equity that already exists.
For example, with Ghost Town Coffee, we learned that customers connect the lantern and the color orange to the brand. We leveraged this existing equity and updated the orange and lantern to feel more on strategy. The Ghost Town Coffee brand now feels as high-quality as their coffee and strengthens existing connections.
For companies that are new, it is perfectly normal for brand equity to not exist, but it is imperative that the strategy be laser-focused to build a solid foundation that will eventually be used to build brand equity.
After defining your brand, it is time to bring it to market. Brand Execution is every touchpoint a consumer could interact with your brand, this can range from your employee onboarding process to traditional marketing. We recommend considering every single one of these touchpoints and making sure everything feels cohesive and on-brand. By keeping your brand strategy in mind, your company is set up to make authentic connections with your customers and build brand equity.
The success of your brand goes beyond just your sales. Do not get us wrong - your monetary success is very critical to the success of your business. However, it is important to not become tunnel-visioned. Perception is reality. Often how your customers perceive your company directly impacts sales. If your sales are down, it might be because your brand is not fulfilling its promises to your customers, so it is vital to keep a pulse on both internal and external audiences’ perceptions and/or experiences with the brand to ensure you are meeting (or even better, exceeding!) expectations.
Want to get started but do not know where to begin?
Like our work, the Hardy Brands team is an embodiment of the perfect balance of strategy and creative. We’ve cultivated a team of certified brand specialists and strategists, designers, copywriters and marketing professionals who are ferocious about helping you succeed. We’re a Montana marketing agency that will constantly strive to improve your business.
As a branding, marketing and design agency, we partner with all types of businesses, from restaurants and breweries to building and real estate professionals, nonprofits to accountants and many others. Get a better idea of who we are and what we do by visiting our Work page.
