The phrase brand equity sounds like jargon. It’s not. Brand equity is developing people’s perception of a product or service. Often, it’s the difference between competitors. It provides an advantage.
Brand equity is valuable. Its value is revealed in a number of ways.
Profit
Brand equity helps create higher price points for products. It’s one reason people are willing to pay more for certain things. For example, grocery stores often have their own generic versions of popular food and beverage brands. More often than not, customers choose the comfort and perceived value of Heinz verses an unknown brand. Even if the ingredients are identical.
Awareness
Consumers are inclined to choose a product or service with a good reputation. For services, such as our client Intermountain Healthcare, brand equity is critical in this regard. Years ago, Faktory helped Intermountain Healthcare rebrand. From there, we’ve dedicated efforts to support that branding.
Because healthcare isn’t always a daily demand for individuals, it’s vital Intermountain’s brand retains its emotional connection. It’s just as important to remain top of mind. Not everyone needs certain specialized care. But in their moment of need, the power of brand equity is revealed in their choice.
Loyalty
The power of brand equity is also evident in consumer loyalty. Consumers can feel attached to brands because of positive brand equity. It’s why one athlete may only wear Under Armor and another only Nike. Both are great companies. Their individual brand equity is the tipping point.
Apple has one of the strongest brands in the world. Their brand equity is so positive people are willing to wait hours in line for their products. Customers are even willing to pay a premium price for it.
Retention
The underrated power of brand equity is the ability to rely on it for unanticipated reasons. No one can predict mistakes, or they wouldn’t make them. Companies aren’t perfect. Brands can blunder. The equity a brand builds can be a safety net. If people like your brand, they tend to extend forgiveness. This is a fact.
Although there are multiple factors that contribute to brand equity, advertising agencies play a huge role in creating it. They’re capable of building brands, reinforcing stories, increasing recognition and beyond. Faktory teams with a variety of clients to get it right.
We treat brands like an organism. It takes figuring out the best route for growth and development, or maintenance.
Behind brand equity is an agency. The power of it drives success.
Need help building brand equity? Hire us.
