In today’s dynamic business landscape where customers prefer brands they recognise and trust, the concept of brand equity sits at the heart of success. It is strategically crucial for any branded business to develop a system for evaluating whether its brand is robust, enjoys a credible reputation in the market, and most importantly, is poised to drive prospective growth and positive returns. In this blog, we’ll discuss the significance of measuring brand equity, key metrics to focus on and how businesses can enhance their overall brand value.
Brand equity encapsulates the perception of your brand in the minds of the customers. It encompasses various elements, including brand loyalty, perceived brand sentiment and brand awareness index. A brand with high equity dominates market share, drives customer loyalty and sustains competitive advantage in the long run. Let’s delve deep into these key metrics for measuring brand equity.
Brand Loyalty
Brand loyalty boils down to the potential purchase commitment that consumers exhibit toward a brand over time. Key metrics such as repeat purchase rates, customer retention rates, and Net Promoter Score (NPS) reflect the commitment of customers towards a brand. Not only do loyal customers provide a stable stream of revenue but they in effect serve as brand ambassadors of the brand, driving positive word-of-mouth and organic growth.
Brand Sentiment
Brand sentiment assessment is all about knowing what people think about your services and products, and what their reasons for liking or disliking. It is the overall feeling or perception of customers toward a brand through brand mentions in print, online, forum discussions, across social media platforms, etc.
This measure can help you understand how the target audience truly feels about your brand. It is important to gather the opinions of your customers through their online discussions and social interactions. You can essentially gather these opinions by data mining social media, forums, blogs, and review sites and classify them as positive, negative, or neutral sentiments. This measure is very crucial to evaluate your reputation in the market and tailor your online marketing strategies to either cement your position or improve it.
Brand Awareness
Brand awareness is the extent to which your target audience or the wider world is able to recall or recognize your brand, including logo, brand story, products and services, etc. You can do this through social media campaigns, influencer marketing, online content and advertisements, etc.
A higher brand awareness index leads consumers to develop an instinctive preference towards your brand when they consider purchasing in your category. Brand awareness can help you put a spotlight on your brand and stay on top of the consumer’s mind, thereby increasing the likelihood of being chosen when purchase decisions are made.
Whether your brand has been in the market for a while or you’re just starting out, it’s time to invest in your reputation. Arsiga Konics can help you recognise the strength of your brand in the market, how it has progressed over time and the direction in which it is moving. Our brand experts and specialists can tailor custom strategies that are geared towards boosting these brand equity metrics.
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