{"id":11566,"date":"2022-05-22T16:41:16","date_gmt":"2022-05-22T16:41:16","guid":{"rendered":"https:\/\/www.revuze.it\/?p=11566"},"modified":"2022-12-15T13:08:09","modified_gmt":"2022-12-15T13:08:09","slug":"how-to-measure-brand-equity","status":"publish","type":"post","link":"https:\/\/www.revuze.it\/blog\/how-to-measure-brand-equity\/","title":{"rendered":"Using qualitative research for measuring brand equity"},"content":{"rendered":"

Brand equity<\/span><\/a> is a great weapon to have in the never-ending battle that is today\u2019s competitive markets. The main benefit of having a strong brand equity is that consumers will buy your products no matter the cost to them, as they perceive them as having innate value or quality based simply on the fact that they came from you.\u00a0<\/span><\/p>\n

Being the top brand whenever consumers think of your market sector is the ideal position, but it\u2019s not quite that straightforward. I\u2019m sure you\u2019ve heard of the Pepsi vs Coca-Cola, Apple vs Microsoft feuds etc. No one side can claim to truly be at the top of the market, despite all having strong brand equity.<\/span><\/p>\n

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What Is Brand Equity?<\/b><\/h2>\n

Brand equity is quite simple to define but more complex to measure.<\/span><\/p>\n

Put simply, <\/span>brand equity is a brand\u2019s perceived value according to consumers<\/b>. It can also be defined as the level of positive feelings that consumers have about a brand, when compared to others in the same market space.<\/span><\/p>\n

For example, if you order a rum and Coke at a bar, you might be asked if Pepsi is okay. Some would answer yes, some no \u2014 that\u2019s brand equity. If you go to buy a new gaming console and are dead set on having a Playstation, that\u2019s brand equity.<\/span><\/p>\n

Some brands even dominate the market to the point where their name becomes the commonly used word for the item they produce. Blu-tac, Coca-Cola and Sellotape have become synonymous with their markets, despite being only one amongst dozens of brands. That\u2019s strong brand equity at work.<\/span><\/p>\n

If you have strong brand equity, you have a dedicated customer base and the option to charge premium prices. If you launch a new product, you\u2019re guaranteed to get customers no matter what it is, just from the trust they have in your brand. You need to make sure that your products are still top-quality however, a lesson Microsoft learned the hard way with <\/span>Windows Vista<\/span><\/a>.<\/span><\/p>\n

Keller\u2019s Brand Equity Model<\/b><\/h2>\n

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It\u2019s worth mentioning the <\/span>Keller Brand Equity<\/span><\/a> model here. We won\u2019t cover it in too much detail as that would be an article in and of itself, but let\u2019s go over it and give you the general idea.<\/span><\/p>\n

The Keller model states that in order to get a strong brand, you need to shape the way your customers think and feel about you. This starts at the base level with establishing your brand identity, then works its way up the pyramid by asking questions about what your brand might want to achieve.<\/span><\/p>\n

It\u2019s a step by step process that makes thinking about how you plan to position yourself, and what feelings you want to evoke in your customers, quite simple actually. Each stage contains crucial components that evoke brand loyalty, so be sure to give it a look if you want to build your brand up to the next level.<\/span><\/p>\n

6 Ways Of Measuring Brand Equity<\/b><\/h2>\n

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Measuring brand equity isn\u2019t straightforward. There are a number of factors to consider, and which one you put weight on will depend on your business model, industry etc.\u00a0<\/span><\/p>\n

Brand equity isn\u2019t something you can measure in numbers – it\u2019s all relative! Still, there are a few tried and tested brand equity analytics you can use. We\u2019ve laid out five of them below for your consideration.<\/span><\/p>\n

Competitive Analysis<\/b><\/h3>\n

Competitive metrics set you up against your competitors and see how you\u2019re doing compared to them. It\u2019s a more aggressive form of analysis which takes their marketing campaigns and yours, sees the results of them and tells you how well you\u2019re doing in comparison. If your competitors are lagging, that means you\u2019re leading, and vice-versa.<\/span><\/p>\n

Other factors you can look at for a comparison between brands include the relative customer sentiment, acquisition rates, social media engagement etc.\u00a0<\/span><\/p>\n

Remember though, just because your competitors are below you now doesn\u2019t mean you can relax. They\u2019ll be looking for ways to improve just as you are, and if you stop to watch you\u2019ll be left behind!<\/span><\/p>\n

Financial Data<\/b><\/h3>\n

Another metric you can use to measure brand equity is financial data. Market share, profits, revenues, prices – these all tie in to how well your brand is doing, since more brand equity correlates with more customers. Compare these to those of previous years or quarters and you\u2019ll be able to measure brand equity data over time.<\/span><\/p>\n

Customer lifetime value<\/span><\/a> is another strong indicator. Essentially it\u2019s the value that a customer brings to you during the entirety of their total interactions with you. Strong brand equity correlates to higher CLV, since loyal customers will bring in more revenue for you overall. Conversely, if you need to keep re-attracting customers it might end up lowering their overall value to you, since acquiring a customer is more costly than keeping a current one.<\/span><\/p>\n

Also worth mentioning is the cost to acquire new customers, which is a huge indicator of brand equity. If said cost is large, it means that it takes a lot of incentive for a consumer to switch from a competing brand to yours, meaning your brand equity is low and you need to work on your image.<\/span><\/p>\n

Brand Awareness<\/b><\/h3>\n

Brand awareness is another abstract quality that\u2019s hard to measure, but nevertheless it\u2019s very valuable when you\u2019re looking at your brand equity. To put it simply, if consumers don\u2019t know about you then they won\u2019t buy from you. If they know of you only vaguely, you won\u2019t be their first thought when looking for a product.<\/span><\/p>\n

Having high brand awareness means that you\u2019re synonymous with the market you\u2019re in – like the examples of Coca-Cola and Sellotape mentioned earlier. Being so well known comes with certain risks to your brand, as you lose copyright on any name that becomes the commonly used term for an item, but it\u2019s a definite sign that you\u2019re well up there in people\u2019s minds.\u00a0<\/span><\/p>\n

Coca-Cola managed to retain their trademark, since the commonly used term is the nickname Coke, however Sellotap lost theirs when the term was deemed genericized enough.<\/span><\/p>\n

Ways you can measure brand awareness include:<\/span><\/p>\n