How Can Brand Equity Bring ROI to Your Business?
Does Your Business Have Brand Equity or Just Brand Awareness?

How Can Brand Equity Bring ROI to Your Business?

In the world of business, branding is everything.

Your consumer has a feeling when they see your logo, are receiving your service or when others comment on your product that may be in their hand, slung over their shoulder or in their kitchen.

It has immense power once it's truly established.

And once your brand is established, it will have a direct correlation to your profitability. Brand equity can be developed organically through natural growth. This would typically be via positive sharing word-of-mouth from current and past customers. This is why understanding your target audience and making your brand different from the competition is really important. If your customers know your “why” and feel value, word spreads and brand equity grows.

Brand equity can be fast tracked through advertising and marketing. If you have a solid foundation for your brand and great feedback from your customers, you could invest in a brand awareness campaign to grow equity more quickly. 

Adding a new product or service under an “umbrella” brand can help the new product/service grow faster because the parent brand has already established trust. That trust is key in growing your platform and creating loyal customers. Good reputation increases the perceived value and paves the way for premium pricing. This will allow for:

  • Less cost on advertising
  • Increased customer loyalty
  • Positive brand associations (usually trustworthy, safe, competitive, etc.)

Branding Campaigns

Mass marketing branding campaigns can help create brand equity.

  • Building a solid brand identity
  • Communicating what your brand means
  • Creating the feel of your brand
  • Allow for cognitive resonance towards your movement

Brand Equity vs Brand Awareness

Brand equity is more about the bond you have and the real estate a brand has in the minds of consumers. Brand awareness is more about whether or not a person is even familiar with a brand. (Does it even exist in their minds? Have people heard of your brand?)

  • Social Proof
  • Focus Groups
  • Brand Recognition
  • Emotions Associated with a Brand
  • Customers pay premium to work with a business they prefer

How to Track Brand Equity

  • Subtract assets from overall value of the firm
  • Evaluate current revenue with potential revenue
  • Assess your competition and compare their pricing to yours
  • Review your growth rate and evaluate the consistency of your growth
  • Purchase frequency is also a factor 

Tips for Increasing Brand Equity

To build a strong brand, you need to shape how customers think about your product or service.

  • Be consistent with every touchpoint
  • Monitor your social media presence and listen to the discussions
  • Talk to your customers to improve their experience
  • Deepen your customer connection
  • Create positive experiences and ask for testimonials
  • Arrange events to allow consumers, familiar with the brand, to share with their friends
  • Have a connected/supportive company culture where employees feel positively towards your brand

Creating brand awareness is truly significant across all businesses. Creating an organic sentiment towards your brand is one of the most beneficial ways of helping the consumer feel comfortable and confident about your company and your movement.

As your brand equity increases, so will your number of your target customers. Without building proper brand equity, companies are likely to run into circumstances where their brand performs poorly and their products or services get lost in translation, or worse, create a negative image.


Learn More about how the Greenhouse can help your business’s Brand Equity grow through our dedicated team of business experts!

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