Brand equity entails intangible and tangible factors. Determining the value of brand equity has proved to be quite challenging to marketers and influencers. In this guide, we hope to make things easier for you by breaking down the process.
Note that the process may take several months; hence, you need to prepare for long market research. The considerations mentioned below will enable you to measure brand equity much easier.
What Is Brand Equity ?
This is the effect that a brand has on customers’ purchases or their perception about a particular product. By equity, it means that the brands hold some kind of value, and that value plays a significant role in determining the consumers’ thoughts about products. Brand equity is an intangible asset, and that is why its value is measured based on the consumers’ or potential consumers’ amount of recognition attributed to a product or service.
Here is a look at some of the practical actions to take to help you determine your brand equity.
Determine Your Firm’s Goals
Content marketing aims to help in determining the value of business results. This way, you need to define your goals.
• What are you looking to achieve via your brand equity?
• Do you wish to create awareness and help prospects know about your brand’s existence, or are you after bettering your brand and how customers perceive it?
• Do you want to determine the number of conversions within a particular period, and what do you plan on doing to increase and maintain customer loyalty?
Defining your business goal is the first step that will guide you into tracking, understanding changes needed, and extending the brand power, all which are essential aspects in measuring brand equity.
Study the Consumers’ Attitude Towards Your Brand
The customer-base view helps in determining brand equity according to the customers’ experience with a brand. The stronger the brand, the higher the chances that customers will have a healthy attitude towards the products and services offered by the brand. The quality of the products also determines the attitude of customers. If the attitude measurements turn out to be positive and remain that way for a long time, it’s an indication of brand loyalty.
How do you measure customer brand attitude? You can quickly determine this based on social sharing and their reviews about your products, services, and brand in general.
Determine the Brand Equity Metrics to Measure
There is a range of aspects that you can measure to help you determine your brand equity. For example, brand awareness and image association are some of the components of brand equity which are not directly related to the consumer experience.
Such aspects may reflect the effects of traditional advertising campaigns and how social media helps in increasing brand awareness. Brand awareness is a show of how effective your marketing campaigns and branding efforts are. Image association indicates what your brand stands for and what it promises the consumers.
Choose the Approach to Follow
There are different approaches that influences can follow to measure brand equity which are;
Brand Awareness – The first aspect to check is brand awareness as it is the key to determining how well your business is known. Some things to consider when assessing brand awareness include:
• How powerful is your brand?
• Are people talking about it, and is it generating social media awareness?
• How desirable is it according to the reviews?
• How engaging is the brand?
Ensure that the brand is continuously engaging by communicating to consumers and fans.
Customer Loyalty – Customer loyalty is the other metric that will determine how well your business is doing and how well you relate with your customers. Retaining customers come with a range of benefits to businesses.
According to reports, retained customers deliver up to 23% premium in regards to revenue generation and profitability.
Consumer retention can maximize profits by up to 80%. It is unfortunate that most businesses lose more than 50% of their customers every five years, which is an indication of lack of customer loyalty. Such disloyalty adversely affects business growth by up to 50%.
How do you retain customers? The first step towards customer retention is to work on the content. Always offering them with engaging content shows them that you value and care about them, keep them informed, thus promoting loyalty.
Customers who engage with quality blogs have a renewal rate of more than 30%. By renewal, it means that they keep subscribing to your content, which means that they are interested in your business.
Do not forget to consider the conversion rate. As an influencer or marketer, you have to determine if what you are doing is convincing enough to convert potential buyers into actual buyers. Both paid and unpaid traffic will significantly tell how your marketing campaign is fairing.
Measuring brand equity can be a daunting task, but it does not have to be. You only need to follow the right steps and metrics. The first step is determining the business goal in terms of conversions and business loyalty and retention.
With the tips above, you will undoubtedly be in a position to measure your brand equity and determine if there is anything that you need to improve.You can also use SEO link building services to grow your ranking by creating relationships with trusted industry authorities.
Kimberly Clark is a content marketing specialist in IT & SEO, who helps clients increase their revenues by improving their organic traffic and building powerful campaign through Google Adwords.