Are you looking for ways to measure brand equity? What business isn’t? In this quick, informative article, we’ve pulled together the top five ways to help measure brand equity. Let’s get started.
Brand equity is the social value of your brand’s name. If your brand is well-known and recognisable, it has a value all of its own, and that’s down to consumer perception. So, it’s not about the product or service that your business is offering, it’s about the consumer perception of your brand.
Brand equity matters because it instantly helps to elevate any products or services that you are selling. It adds value. The more familiar and visible your brand is, the more stable it is, and the more customers come to rely on it. Good brand equity helps build trust, relationships, familiarity and stability – all of which help keep your footing in the industry.
One way of measuring brand equity is by evaluating the value of the brand in itself. This may seem like a tricky thing to do, but it is possible. It’s all about measuring how much the brand itself contributes to your business’s success. To measure this element of brand equity, you’ll need to assess how much you’ve spent creating the brand. You’d include things like advertising, and trademarks, and licensing too.
You should also look at its market value and how it compares to other similar brands in the market. Then there’s the income element. How much did your brand bring into the company, and what did your business save by the growth of the brand.
How do you get to grips with understanding how powerful your brand is? Is it even possible? The answer to understanding your brand’s strength lies in consumer surveys. Some ideas around how to create these can be found here. Consumer surveys give you the chance to understand your brand from the consumers’ perspective, and will really help you appreciate the value of a strong brand.
Brand awareness is key to a business’s success. It’s all about how well your brand or business is known by your target audience, the wider market, and by your main stakeholders. To understand how aware people are of your brand, you’ll need to conduct research and ask the right kind of questions.
Think about asking questions that focus on whether a client plans to buy something from your brand in the future, how aware your customers are of your brand right now, and then check in again in a few months' time, or a year or so later. You could also focus on finding out about your customers’ purchase history, and if they’ve ever spent time talking about your brand in general day-to-day conversations with their friends and family.
To conduct these questions, you can use various formats such as research groups, focus panels, and customer surveys. Research that looks at sales figures, and website search data of your brand will also be helpful.
What does your target audience think about your brand? Do they think you add value to the market? Do they believe you provide something unique, and do things differently than other similar brands? Finding out how relevant your brand is to your customers involves conducting things like -
Your business’s finances can reveal a lot about brand equity. Historical data can be used to get a better understanding of your brand’s performance with regards to the market share, revenue, how profitable it’s been, and the growth rate. Use your financial data to also better understand the cost to the business to retain customers, acquire new ones, and how much has been spent on brand investment.
If you’re not convinced your brand is working hard enough, perhaps it’s time to take a deeper look into your brand’s identity. This article looks at brand ID and how to go about creating a strong and powerful one.
At Creative Ideaz, we’ve worked with hundreds of businesses to build their brands and create powerful identities that ensure they stand out in the crowd. If you’d like us to do the same for you, get in touch with us today and see how we can help make your brand the best it can be.