Brand equity, is the value or worth that consumers feel the brand has.
A great example of brand equity is when Apple launches a new product. Although there are other similar products (cell phones, tablets, etc.), consumers line up around the block to buy the latest Apple product (Hayes, 2021). Consumers value the brand so much they are willing to stand in a line to get the latest tech product. Hardly ever do brands develop a high brand equity overnight. This takes time in growing your target audience and brand awareness.
How is Brand Identity Different?
Brand identity is slightly different in how the brand portrays or represents itself through images, support, and even its logo/color theme.
One of my favorite brands is Microsoft! What an evolution the company has brought for education and the workforce through their new tools! Microsoft has taken to segmenting their target markets to develop the best products for each segment. In doing so this required some serious strategy through their marketing analytics.
Rebranding the Company Mission and Focus
In the first step, Microsoft changed their mission statement to “Empower every person and every organization on the planet to achieve more” (Adamska, 2019) making it their mission to grow through individuals and not through vague markets. Microsoft had previously marketed their products individually instead of marketing their brand along with corporate styled language (Adamska, 2019).
When Microsoft made the change to market their brand all together (instead of segmented into their different product sectors as different brand pieces) they changed their style of communication to tailor to their consumers emotionally and human-to-human. Microsoft had taken a step back to find its gaps in their marketing strategies to create a more cohesive and identifiable brand through its deep consumer research to measure the effectiveness and success the brand is at and how it could be improved.
What is the Net Promoter Score?
NPS (Net Promoter Score) is defined as how well a consumer would be willing to promote the brand and is seen as a satisfied and a loyal customer. Another great brand example is Amazon - because who can live without Prime! They have a high NPS (at 68%) keeping consumers happy with not only their services but their products (Comparably, n.d.). Thus creating an even high CLV (Customer Lifetime Value)! Amazon consumers have been able to trust the brand through their “Amazon’s Choice” products and trusted review process to measure the success of the product sold and the customer’s satisfaction through the product.
Growing your business's NPS is easier than it sounds. Start with finding the gaps in your marketing strategies, service, and products. Understand and learn these gaps of opportunity through your analytics and even consumer surveys for ease of experience and product reviews.
Adamska, M. (2019, May 25) The positioning of the four most valuable brands in the world – 2019 update retrieved from Brand Struck: https://brandstruck.co/blog-post/positioning-three-valuable-brands-world/
Comparably. (N.d.). Amazon is ranked # - in top global brands retrieved from Comparably: https://www.comparably.com/brands/amazon
Hayes, A. (2021, February 23). Brand equity retrieved from Investopedia: https://www.investopedia.com/terms/b/brandequity.asp