How to build brand equity & why it's important

It is easy to think that for eCommerce business success lies wholly with increasing store conversion rate. This is of course important, but focusing on short-term performance metrics, such as conversion rate, only captures the here and now. Building relationships with customers is a long-term commitment, and as we have said in a previous blog, customer lifetime value is essential to long term success in eCommerce. 

One way to focus on this relationship building is Brand Equity…

What is Brand Equity?

It is the intangible essence that makes your brand extraordinary. It encompasses the collective perceptions, emotions, and associations consumers have with your brand. Think of it as the value assigned to your brand name in the marketplace. When your brand exudes positivity and garners trust, that's brand equity! Whilst this sounds like an impossible thing to achieve, every brand had the ability to increase its brand equity

Why focus on Brand Equity? 

There are many reasons to make brand equity or brand personality a priority:

• A positive consumer perception leads to increased trust and credibility- a bedrock of customer loyalty!
• You can command a premium price- Yes! people will pay more for a reputable and reliable brand.
• Unlock a competitive advantage by creating an emotive bond with your brand. 
• Customer advocacy- A truly strong brand equals fierce customer loyalty, culminating in brand advocacy. Picture your customers raving about your offerings, becoming brand evangelists in their own right.
• Innovation is made easy with brand extension opportunities- you have a customer base ready and willing to go with new products you launch. 

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Now the real question is…HOW do you build Brand Equity?

Define your brand identity 

Begin with the foundation - a clear and compelling brand identity. Craft your brand's unique story, values, and personality- what sets you apart from the competition? This identity will serve as your brand's North Star.

Be consistent with your brand

Maintain a consistent brand presence across all touch points, from your website to social media and beyond. This applies to both your messaging and brand aesthetic- If your brand values sustainability, make that the focus of your site, not the products/services you offer. Consistency builds trust and ensures consumers recognize your brand anywhere, anytime.

Deliver outstanding customer experiences

Create unforgettable customer experiences that go above and beyond expectations. When your brand consistently exceeds customer needs, loyalty blooms naturally. This can be the level of customer service you provide, including extras in order packages, invitations to VIP offers/ events.

Foster emotional connections

People buy from people and humans are emotional creatures at heart, so embrace the power of emotion in your brand strategy. Appeal to your customers aspirations, values, and desires. Do they value sustainability? If so, you should be aspiring to too.

Engage, Engage, Engage!

Interact with your audience, listen to their feedback, and respond authentically. Building a strong community around your brand creates a tribe of loyal supporters.

Innovate and stay relevant

Embrace innovation and stay ahead of the curve. Look towards competitors, industry and the wider societal focus to shape strategy and meet evolving consumer needs. A forward-looking brand always remains relevant!

Overall, brand equity serves as a powerful intangible asset that can significantly impact a company's commercial success. Investing in building and maintaining a strong brand identity and reputation is a strategic move that can yield substantial returns over the long term.

We've worked with a ton of brands to provide a brand refresh, uplift or complete overhaul to help them really nail their brand identity online. Want to learn more? Contact us to find out how we can help you.