Featuring marketing tips, tech news, digital wonders, some personal things and everything in between . . .

Brand Equity: The Biggest Challenge Facing Businesses Today

Friday September 20, 2019

Reading Time: 7 minutes

When you run a company, there are countless moving pieces to supervise. Your marketing efforts and brand presence, while only serving as small pieces of your overall business, are the two areas which can have the greatest impact on your sales, growth, and success. Unfortunately, many business owners are currently operating on an outdated understanding of brand equity. Read on to learn how to manage this critical component of your digital strategy.

What is Brand Equity?

The American Marketing Association defines brand equity as the value of a brand beyond what can be explained by a product’s functional features. When handled expertly, this can boost sales and lead to greater consumer preference over your competitors – ultimately, this generates lasting loyalty and increasing profits.

Benefits of creating a strong brand include:

  • Financial advantages
  • Brand recognition
  • Customer loyalty
  • Improved margins
  • Lower sensitivity to price changes
  • Ability to set higher prices for goods and services
  • Lower vulnerability to competition

How do you boost this relationship with customers? Regardless of your industry or the size of your organization, there are many approaches available. It can be built within a specific niche, or by making a name for yourself as a local alternative to big-name corporations. Social media advertising efforts, celebrity endorsements, valuable sales promotions, and sponsorship of charitable or local events are all popular avenues for building brand equity. However, one of the most challenging aspects of marketing lies in discovering how to quantify success in this arena.

How Do You Measure Brand Equity?

There has recently been a change in the process of measuring a company’s brand equity. Previously, it was sufficient to state that strong brands are just “more preferred.” Today, we know that brand equity is a shifting, fluid concept. It is bolstered by marketing and worn down by time.

In an article from Marketing Tech News, Professor Eric Bradlow – faculty director of Wharton Customer Analytics Initiative – shares the modern perception that there is more to this model than mere favorability. This includes:

  • Understanding how brand equity impacts customer choices
  • Customer experience is the new brand
  • Appreciating that strong brand equity leads to improved marketing productivity

He cautions that a data model ignoring these factors may lead to erroneous pricing decisions, which can negatively affect your bottom line. Of the above, the most critical component is customer experience.

Why Customer Experience Matters

It’s no secret that your clients’ opinions will be shaped by their experiences with your products or services. In the digital age, customers have developed higher expectations; with the world at their fingertips, a single negative incident can cause them to seek out an alternative company to support. Beyond boosting product ratings or decreasing wait times, the job of an owner is to fully understand the customer journey. By developing a thorough grasp on client pain points, you can optimize your services and prevent defection to a rival business.

There are numerous benefits to a customer-first approach.

  • Research shows that it’s more expensive to find new customers than to keep existing ones.
  • Existing customers spend about 67% more than new customers.
  • Data and analytics tools allow you to fill the gaps in your customer journey.
  • Optimized customer journeys lead to improved customer satisfaction.
  • Increased referral sources: a happy customer is the best marketer.
  • Positive customer experience impacts brand differentiation more than price and product.

What you may not consider is that every single choice you make as an owner impacts this perception: the way you market, conduct research, and communicate are all vital variables. As mentioned in the article, focusing on customer experience “may be the single most important investment a brand can make in today’s competitive business client.”

Increased brand equity and its resulting loyalty yields profitable results for businesses and customers alike. Consider creating a highly tailored customer experience that exceeds their expectations – you won’t regret it.

To learn more about digital marketing and branding your business, contact Webconsuls today.

Reading Time: 7 minutes

Many business owners feel an extra incentive to advertise their products and services at the beginning of the new year, and many more have made a moment of “back to school” beginning in August. However, recent research indicates that merely focusing on mothers and fathers of the back-to-school crowd is a missed opportunity for marketers. Instead, the fall also serves as a time of health, positivity, and refreshed routines. The experts at MarketingTech call this phenomenon “back to life.”

Back to Life: Another Beginning

The “new” new year is a groundbreaking opportunity for marketers. Statistical data from Pinterest indicates that those who set long-term goals in the late summer follow through with major purchases in the fall. These trends extend to consumers in Japan, the United States, Germany, the United Kingdom, and France, confirming that Back to Life is a universal phenomenon.

When polled about their mindsets at the conclusion of summer, over half of adult respondents state that they are seeking ways to maintain their summer positivity throughout the seasons ahead. 45% of British respondents feel more inclined to make several small improvements that will increase their happiness at the end of the season. The same percentage would like to declutter and reorganize, while a smaller amount feel they would benefit from starting new routines.

How Brands Play a Role

During Back to Life, brands have a unique chance to positively impact the lives of consumers. They’re able to contribute to healthy habits and encourage personal transformation. If your company provides services with the potential to renew one’s verve for life, this is the optimal time to begin your messaging.

Industries that may particularly benefit from the Back to Life include addiction treatment and recovery, healthcare, fitness, and lifestyle brands. If you offer a good or service that could assist someone with their new start – whether in household organization, health, or self-improvement – this is a prime opportunity to begin motivating your audience to affect positive change.

Motivational Marketing

One way that your company can participate in the movement of the “new” new year is to begin offering motivational content. This is a successful strategy utilized by many brands looking to resonate with change-centered customers, and it works for several reasons.

First, beneficial content that adds value to your customers’ lives will bring them in. This honest offering doesn’t require cold calling or sales-forward advertising; instead, it’s more likely that your audience will decide to repeatedly engage with your content over and over again. The reason for this, according to Forbes, is simple: “motivation is something anyone can agree with, and as such, holds a valued place regardless of what your company is selling.”

Secondly, motivation is tied to the Self Discrepancy Theory: our sense of self-belief is tied to a relationship between emotion and motivation. Because people sometimes have difficulty believing in themselves, it is beneficial to offer marketing messages and content that inspires your audience.Finally, this approach encourages your customers to share and engage. They may comment with their personal stories and develop an affinity for the brand based on the positive messages you are distributing each day. When this occurs, you have developed a relationship with potential clients, making them more likely to reach out and learn more about your products and services.

Back to Life: Content Marketing for Fall Success

Now that we know there is a Back to School equivalent for adults, there is no reason for business owners to overlook the importance of Back to Life. Consider revamping your social media presence for the beginning of this new season by incorporating messages of motivation that could benefit your audience. With just a little content strategy, you can take advantage of the “new” new year.

Webconsuls is a digital marketing agency based in Nashville, TN.