How much is your brand worth? Donald Trump values his personal brand at more than $3billion.
But while most business leaders aren't knee-deep in political controversy, the fragility of brand equity is something that all entrepreneurs need to be aware of.
The brand equity of a business comprises all the associations, emotions, and experiences that come to mind when a consumer is exposed to the brand. What kind of bond is there between you and your customers? The stronger that bond is, the higher your brand equity.
The value of brand equity
And what does strong brand equity get you? It can get you widespread recognition; some brands even manage to become part of our everyday lexicon.
Think about someone sipping coffee from a thermos, but dreaming of a Bacardi and coke, while using a biro to write a reminder on a post-it note to buy a new hoover.
But this is a side effect of success, not the aim; and there are many ways to build brand equity. Your communications, your product performance, your customer service, even your brand name can strengthen or degrade your brand equity.
Boosting your brand equity
Here are four ways to ensure your business is focused on the right sort of brand equity development.
1) Quality products and services
This is the backbone of your brand. It's vital that you’re able to deliver a quality product to your consumers if you want repeat purchases and good word of mouth.
Unfortunately, businesses in every industry make the mistake of releasing products just to appear innovative. Releasing a product that hasn’t been fully tested and doesn’t match the performance expectations of consumers (yes, I’m looking at you, Windows Vista), can erode brand equity.
2) Competitive analysis
A strong brand is a brand that can adapt to market changes. To be such a brand, keep an eye on industry trends and your competitors’ activities - in other words, don’t be Blockbuster.
An effective way to build brand equity is to target a niche: meet a specific need that no-one else is currently satisfying. This radiates both innovative thinking and great understanding of your consumers; being admired and respected is the hallmark of strong brand equity.
3) Consistent brand image
When you understand the market and your place within it, you need to communicate that to consumers in a consistent and engaging manner.
Your products and pricing are hugely important, but so too are other aspects of your business. From your brand name and straplines to your social media activity, every part of your business that comes into contact with customers and potential customers must be refined to ensure it is highly targeted.
Establish your brand image from the start, and model your business accordingly. If you operate in the premium sector of your industry, be classy. If your product or service is about putting a smile on people’s faces, be fun.
Be congruent and be consistent. Consumers know what they like, and they like what they know. Be in control of what they know.
4) Listen to customers
Brand equity resides in the minds of your customers. Listen to them.
Coca-Cola: Here’s New Coke.
Coca-Cola: Sorry about that. Anyone for Classic Coke?
Coke listened to customers and remedied the mistake - but they could have avoided it altogether if they had asked consumers if they actually wanted the world’s most popular fizzy drink to taste different.
Ensure that your consumers are given channels to give their feedback. This will help you understand the strengths and weaknesses of your brand as well as the opportunities for growth (and what to avoid).
Understanding brand equity is important, no matter what stage your business is at. You must be able to create a positive image in consumers’ minds if they are to become repeat customers, or become a part of your referral strategy. If you achieve this, your brand will strengthen and you’ll see real growth.
Oh, and try not to be impeached.
Sponsored post. Copyright © 2017 Shweta Jhajharia is principal coach and founder of The London Coaching Group.
From a solid foundation as Unilever's Global Marketing Manager, Shweta has a proven track record with clients achieving an average of 48% profit growth. She is one of the world's most accomplished coaches - she has won 'London Coach of the Year' every year since 2009, has been recognised by the B...