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We live in a world where brands are becoming household names. You can stay calm without having to learn about Google, improve (or make worse) your photos in Photoshop, or even start the infamous Netflix thing. If you want to be the next Sharpie or Kleenex, you need to build brand equity early on.
Before we explain the “why,” let’s consider the “what.” trademark value is a somewhat intangible measure of brand awareness, trust, and goodwill. However, despite its temporary nature, it allows for consistent branding, which directly impacts sales. increase revenue Increased by 23%.
Many metrics can be used to measure brand equity, including brand awareness, association, and loyalty. customer lifetime value (CLV), marketing ROI, and even the general sentiment of your audience.
Semantics aside, let’s look at six reasons to grow your brand equity early.
Business 1. Establish awareness and differentiation
If you haven’t lived under a rock, you’ve probably heard of Coca-Cola. Coca-Cola is a mastodon, a soft drink that not only permeates our daily lives, but has also become the unofficial symbol of Christmas. They are easily recognized and searchable on Google, so they generally have a good reputation.
Compare this to something like DRY. 18% awareness It exists in my home country, the United States, but not in other countries. Because of its name and the presence of Canada Dry, a 120-year-old root beer brand (that’s still going strong), it’s not an easy Google search. It may be a good product, but it’s struggling against its own brand.
No matter how good the product is, 59% of people It’s not enough to just make a great product, you need to make it stand out from all your competitors, because you’ll default to something familiar rather than trying an unknown brand.
Related: Creating a Brand: How to Build a Brand from Scratch
Business 2. Build trust
However, pure recognition alone is not enough. We all know you don’t see people lining up to buy ISIS’ latest summer collection.
Word of mouth is important to get your first sales, but a commitment to maintaining that trust will earn you continued patronage. 67% of customers If you have a good reputation, they will agree to try your product. However, if you don’t earn their trust, they won’t continue using your product.
Related: “Brand Equity” is an intangible thing worth real money.
Business 3. Improving brand value
Brand value is typically calculated from tangible metrics such as asset value, but more ephemeral metrics such as brand equity can have a significant impact on cost.
Establish positive brand equity It’s a long process. As Warren Buffett famously said, “No matter how great your talent and effort, some things just take time. Even if you get nine women pregnant, they’ll give birth to a baby in one month.” I can not do it.”
Spending more money on marketing doesn’t guarantee an instant sensation. Additionally, there are many cases like Cards Against Humanity and Dollar Shave Club, where teams with limited marketing budgets have been able to go viral almost overnight. Therefore, the sooner you start investing in marketing, the more likely you are to break through the noise.
Related: Are you acquiring a brand? Here’s the secret formula for calculating real dollar value
Business 4. Demand a higher price
On the other hand, if you want to profit from it, established brand, higher capital allows them to charge higher prices for their products and services. Customers are not willing to pay for a product that they perceive to be of higher quality.
Incredible capital allows Balenciaga to sell seemingly nonsensical products such as: $1,850 trash bag or $4,400 tape bracelet (It also comes with shock value and viral PR, but that’s beside the point).
Business 5. Reduce marketing costs
Okay, bear with me on this one. Growing a brand from scratch takes a lot of time, money, and creativity. However, once you get going, you’ll start to see higher returns from your marketing efforts.
On average, the time it takes a client to eight touch (This number varies by industry) Contact the brand to purchase. That means the brand needs to hear or see the ad eight times before he actually commits. However, user-generated content helps reduce this number and is, in a sense, a free “touch.”
The calculation is easy. The fewer contacts a client needs, the more Convertfewer resources need to be spent even though the initial investment is large.
Related: Why successful entrepreneurs understand the power of brand equity
Business 6. Improving crisis resilience
Crisis resilience is a two-way street.
On the other hand, when a brand faces a crisis, good capital can help it survive. Steady flow of loyal customers.
On the other hand, if the crisis is more global and impacts the purchasing power of your customers, positive equity will make your company a prime choice for purchase. After all, why would people want to try something new when they know your brand offers quality products at affordable prices?
Unsurprisingly, the impact of the crisis on each industry varies widely. For example, Chanel is not feeling the recession or the COVID-19 pandemic. 23% increase in revenue.
Related: If you aren’t thinking about brand equity, you should be. Here’s why:
Business conclusion
Building brand equity is a long process. After all, the sooner you start building trust, loyalty, and awareness among your customers, the better. Established brands bring in more revenue, have a better competitive advantage, and can withstand any storm, making it easier to run a business and experiment with new strategies.
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“Established brands bring in more revenue, have more competitive advantages, and can withstand any storm, making it easier to run a business and experiment with new strategies.” .”
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Source link: https://www.entrepreneur.com/growing-a-business/6-benefits-of-brand-equity/473174
