Brand Equity vs. Brand Awareness: What Are They And How To Build Them?

The terms brand equity and brand awareness are most often than not subjects to confusion as they are frequently interchangeably used in the branding scene like they hold the same meaning. But for your information, these two terms actually refer to two different things. Brand equity can be briefly defined as the customers’ perceived value of the brand, while brand awareness describes the level of awareness the customers have of the brand. Knowing the distinction of both can produce a powerful impact on your bottom line as you align your strategies on each of your evaluations on those elements and potentially skyrocket your business.

Read further on this article and discover the basics of brand equity and brand awareness such as their definition and characteristics, and how you can use them to build your brand.

What is Brand Equity?

Brand equity, in its simplest form, refers to the customers’ perceived value of a brand. It is a collection of a customer’s experience, opinion, and overall perception of your brand. With that in mind, brand equity can either generate positive or negative insights. A positive impression from a customer based on their previous experiences with your brand may translate to positive brand equity. On the other hand, if the customer left a bad experience from your brand, such as unpleasant customer service, then they are less likely to purchase or use services from your brand with the possibility of them sharing the ugly impression to others as well. In effect, you may receive negative brand equity.

Brand equity is a relevant factor to take into account as it allows you to gain greater market share which positively correlates to strong competitive advantage. Once you have established your edge, your business will then gain the privilege to increase your price point that is higher than those in the market. Nevertheless, customers will still flock and still stay loyal to your product because of your unique selling point. Most importantly, the main point of attaining positive brand equity is to grow your business since it directly impacts your company’s reputation, so customers will most likely only express kind words about your brand.

To manifest positive brand equity, follow the guide below.

How To Build Brand Equity

1. Influence Brand Awareness

You will not be able to sell if people do not know of your brand. Thus, ensure that customers can recognize your brand instantly. And that can be done by making them aware of your brand identity while aligning them to the services or products you offer.

2. Generate a Compelling Brand Story and Personality.

Developing a brand story that triggers an emotional response from the customers has a higher likelihood of gaining a warm reception from them. Brand personality refers to the tone of voice of your branding which prompts the customers to purchase from you. Ensuring these elements will secure your customers’ eyes on your brand.

3. Engage with your Customers for a Stronger Bond and Purchase Relationship with them.

Constantly keep in touch with your customers by conducting surveys, posting newsletters about your products, doing live chats for product concerns, or even hosting an event for them. By doing all those, you can slowly build trust and gain loyalty from them.

4. Foster Favorable Responses and Accept Constructive Criticisms from your Customers.

This tip is what makes your brand equity afloat. When customers embrace your products nicely, they will most probably stay for the long run and even influence their peers to patronize your products as well. Your customers’ criticisms about the quality, relevance to need, and credibility of your products will define your brand’s reputation.

What is Brand Awareness?

Brand awareness seems to be the target for most digital marketing campaigns since it is what’s responsible to create buzz online. However, not everyone understands its significance and how to properly take advantage of it. In actuality, brand awareness plays a huge part in the decision-making process of customers. Brand awareness refers to the recognizability of your brand and whether or not if your brand comes first to the minds of the customers when they are in need of something. 

Brand awareness does a really significant job in promoting your business as it creates associations and affects the choices of your customers. It helps in imprinting your brand onto the minds of your customers. It also has the power to associate behavior to a product or service, which subconsciously influences customers to use your brand in instances that a certain action reminds them of. Apart from that brand awareness also allows your brand to be alongside other big brands as part of a set of choices. Once you improve your brand awareness, you will be seriously considered and have greater potential to be purchased.

How To Build Brand Awareness

Brand awareness doesn’t just happen overnight. It does not occur by just simply posting whatever marketing campaign you have or advertisement. It happens over time when your brand has been sufficiently exposed. To boost your brand awareness, below are some strategies on how to build it.

1. Do Collaborations

You may partner with various organizations that share your brand ideals. You may also tap people who are influential enough that may need your products or the services you provide. This is an effective strategy because the individuals you chose to collaborate with already holds a positive reputation and have strong credibility. Normally, people will really be interested in your brand.

2. Post Blog Contents

Create relevant and valuable content that your target market can consume. Focus your materials on topics that your target audience can relate to, but do not forget to incorporate your brand into it. Moreover, you may also share your blog with other blogs as well for greater reach.

3. Utilize Referral or Incentive Programs

Develop a trustworthy incentive program so that your customers will feel more rewarded when they purchase from your brand. Doing referral programs may also encourage peer influence from your customers such as them inviting their friends to buy from your brand in exchange for a discount. It would still be a win on your part because your customer was able to bring you another one.

4. Harbor the Power of Social Media by Creating Promotions and Contests on Various Platforms

For instance, you organize an online caroling contest, and the winner will be decided through the most number of likes and shares. Of course, participants would share their entries with family and friends. In return, they will be able to help in increasing your brand awareness.

Final Thoughts

As you may already have realized, brand equity and brand awareness are completely different concepts, however, they are interrelated with one another. Brand awareness is responsible for influencing the decision-making process of your customers but at the same time, it is also involved rallying to a good market position. Meanwhile, one of brand equity’s elements is to create brand awareness. 

Amplifying strong brand equity and awareness opens the gates for more business opportunities, loyal customers, and ultimately, higher profits.