Measuring and Understanding Brand Equity: What It Means For Your Organization
As any fractional CMO will tell you, the most successful brands are the ones that manage to build an emotional connection with their customers. It’s about so much more than providing a great product or service; in order to stay the course, your brand has to be memorable and meaningful.
Of course, a lot of this comes down to brand marketing and overall strategy. By working with marketing consultants, you can more clearly define your brand and develop a strategy that strikes a chord with your audience. Part of that process involves determining brand equity. Depending on the outcome of your brand equity measurement, your fractional chief marketing officer may advise that you make certain changes in order to resonate with your customers and better understand your own business. Let’s take a closer look at brand equity from a fractional CMO’s perspective.
What Is Brand Equity and Why Does It Matter?
First, let’s define brand equity. In the simplest terms, brand equity refers to the commercial value of your brand based on consumer perception. Furthermore, having good brand equity illustrates a thorough understanding of each part of the buyer’s journey and your ability to deftly guide your customer every step of the way. It shows that you’re able to effectively prove your brand’s value beyond the products and services you provide.
But does brand equity really matter? Your fractional chief marketing officer will undoubtedly say so. Around 77% of marketing leaders say having a strong brand is critical to their growth plans — and having strong brand equity essentially means that your customers are loyal to your brand due to the positive associations they have with it. Brand equity matters because it gives your business the ability to stand out from the competition, allows you to build on existing customer loyalty, grants you more opportunities to grow your business, and provides you with more power in the marketplace. In other words, it makes a huge difference for any business.
How Is Brand Equity Measured?
Now that you have a better understanding of brand equity and why it’s so important, you may be wondering how to measure the brand equity of your business. There are a number of different metrics that your fractional chief marketing officer may look at to help you calculate where you stand, which include:
- Brand awareness
- Brand loyalty
- Customer behavior
- Sales performance
- Marketing activities and ROI
- Business growth rate
- Lifetime customer value
- Customer interactions
While these aren’t the only factors that may be considered when measuring brand equity, they can provide a compelling picture when they’re combined. Once brand equity is determined, businesses can work with an outsourced CMO or brand strategy expert to make improvements in specific areas and build an even stronger relationship with customers.
Whether you’re attempting to determine your brand equity for the first time or you’re struggling to make necessary improvements in-house, I’m here to help. As your fractional CMO, I can support your team and strengthen your position in the competitive marketplace. For more information, please get in touch with me today.