What is Brand Equity?
What a great question. It's one I often get asked. If you try to search for what is brand equity you are sure to get oodles of different answers. I believe it comes down to one word, "trust". How much trust do your clients put on your brand? This is not necessarily a dollar amount either. When comparing your brand to another brand which is for the most part, equal in every other way, how do they measure up?
Here is an interesting story I've heard which I believe sums it up…
You are out with a friend. This is a friend that you have known for many many years and have a good solid friendship with this person. You and this person know each other quite well and always enjoy each other's company. You and this friend are enjoying a coffee at a local café when you notice that he is not being himself. For some reason, today he is being a bit crass, short and quite frankly, kind of rude. You don't say anything as you just dismiss it as having a bad day, stress, etc.
Two days later, you and your friend are out to coffee once more. Once again, your friend is short with you, kind of rude and a bit insulting. Not sure if you should comment, you decide to let it pass once more.
Then the following week, you find yourself out to lunch with this friend. Once again, he is not himself, being rude, short and crass. This time you mention something, asking your friend if everything is okay as you give him your feedback on his behaviour. Your friend is a bit startled. He did not realize what he was doing and admits that there are stresses building up at work or at home.
Things begin to get better at that point as your friend begins to make adjustments in his life to lower his stress levels and better his moods with those around him. The next time you and your friend go out for a coffee, he is more his true self and much better companion.
Now compare that story to this other story…
You are out with a new acquaintance. Perhaps you just met at the golf course and agreed to share a drink afterword. You sit down and begin chatting and realize that this new acquaintance is a bit crass, short and quite frankly, kind of rude. You care not to say anything, knowing it's not worth a relationship that has not really developed. Begrudgingly, you finish your drink and make your way out, saying there is an appointment that you need to get to, and quickly. That is the end of the relationship.
So what happened? Why were you willing to invest further time in the first friend that you were not willing to in the new acquaintance? There was a previous relationship of trust. It is this trust that builds brand equity. Positive brand equity allows your customers to trust you. Forgive you when you may not have fulfilled an order correctly. Let you know that customer service is not up to par and be there for you when you need them. It is brand equity that builds a company to become a leader in it's industry. Maintaining the trust of your existing customers and building trust in new customers.
Ciao,
Robert Scozzari RGD
