What is brand equity? It’s the value that a business produces by having a brand name that is recognisable, memorable and reputable. A brand with high levels of awareness and recognition has more brand equity than a generic brand, and brand equity is a high point of consideration when determining the value (i.e. selling price) of a brand.
What does this mean for you? If you’re looking forward to your business financing the life that you desire, it means increasing its brand equity year-to-year…and month-to-month for that matter.
And the key to increasing brand equity? You must increase brand value.
Brand Finance has conducted a survey and concluded that 62% of global business value is intangible—meaning that it cannot be calculated using assets such as cash or physical buildings. So what’s it made of? Things like…
- Future Recurring Income
- Brand Name Recognition
- Brand Awareness
- Client Loyalty
- Team Retention
- Customer Engagement
- Staff Engagement
- Brand Name Reputation
- Perceptions of Expertise
Let’s talk about how you can achieve these things, for the purpose of building your brand value and brand equity…and therefore the current worth and future selling price of your business.
Increase Brand Value…to Increase Brand Equity
What are you currently doing to increase your brand equity? Your brand value should be in continuous development, with a goal of increasing it from month to month. Here are the tips I share with my B.R.A.N.D. Accelerators, so they can create the brands they want to see in the world.
- Be THE answer. A glass of water is always necessary, for hydration. But how much more valuable would that glass of water be if you were stranded in the desert? Be that glass of water in the desert. Offer something that no one else is giving to your ideal customers…something they’ve been needing for so long that they’re virtually salivating for it. This is about finding a gap in the market that no one else is attempting to fill or that no one else is filling effectively. The greater the need, the greater the perceived value of your brand will be when you meet that need.
- Increase recurring income. The money your brand already earned (in one-time sales) isn’t as important as how much it expects to earn, in verifiable recurring income (such as subscriptions). Any prospective buyer wants to know how much he or she can expect to earn without changing a thing, and so, I always recommend that every brand develop a plan for creating monthly income.
- Always strive to surprise. Consumers like to be surprised, and they love suspense…as long as they know they can count on the steadfast mission and ever-increasing value of your brand. This means your brand should always be innovating; always coming up with new ways to demonstrate its corporate values to its ideal customers. They will quantify the entertainment and anticipation your business provides and count that with their mental valuation of your brand. Remember: a bored customer is the competition’s customer.
- Give FREE advice on a regular basis. Consumers don’t just gauge how much they’re getting for their money; they also assign value to a brand name according to how much they receive for doing or paying nothing. How much relevant information is contained within your blog? How much do you help people through your social media pages? How much value do you offer at trade shows where you make presentations? This is crucial to closing future sales; it’s also vital to building and proving brand equity.
- Engage them. The best way to keep your audience engaged is to demonstrate to them that you KNOW what they care about most. This will establish connections that inspire them to stay active in your brand and to talk about how valuable it is to them…which will, by default, increase your brand’s overall value.
- Adopt a cause. Now, this can’t just be any cause. It must be something that aligns with your brand’s mission, vision and values. It must be something that your ideal customer will admire and want to support. And it has to be something that you believe, when marketed alongside your brand, will work to increase brand awareness and reputation.
- Recognise them. If you want consumers to recognise your brand as valuable, you must recognise them. Name their problems in an empathetic way. Acknowledge their efforts to make their lives better. Reward them for doing the things that will make the biggest differences. People find significant value in praise. Do this for them, and they will, in turn, contribute healthily to your brand’s value.
- Do it first. What has no other brand done yet? What have other businesses been fearful of? How can your brand break the mould? Consumers will assign extra value to those brands that are brave, and that strive to be or do something different from the rest.
Oh my word! This is so exciting…and really, it’s just the beginning of what’s possible whilst working to build brand equity. As you move forward, commit to knowing your audience and doing the things that make your brand more valuable to its members. They are the ones who matter most. Because, in reality, they are the ones who will confirm the numbers and give you the feedback necessary to position your brand correctly in the market...where it can grow in equity.
Are you looking for specific ways in which you can increase the brand equity of your business? Are you looking to surpass the brand value of your competitors? Then I invite you to explore the How to Build a Brand website, where you’ll get a glimpse of all the different programmes we offer to motivated business owners who want to dramatically increase brand value with fast-growth business tactics.
SavvySME have written an article that may be of interest: How to promote your brand image with less than $100.