Building Brand Equity

What’s a brand worth? More, if you deliver great customer experience

Brand equity is the value inherent in your company’s brand – the goodwill, customer loyalty, awareness, and track record – all the things that make a customer choose your brand over a competitor’s, everything else being equal. The concept may be hard to pin down, but it’s impossible to ignore. Think Apple: the poster child for brand equity. What has Apple historically meant to its customers?

Every touchpoint, every quality of the customer experience and the product itself  – well designed, smart, forward thinking, user-friendly – was meticulously designed to build brand equity. There has been tremendous value in the power of the Apple brand to delight Apple customers and its shareholders. In recent years we’ve begun to see the decline in Apple’s brand equity. Every under-tested new release and misstep in projecting what users want provides a lesson as well.

Building brand equity through improving customer experience:

  • Building goodwill: Mindfully delivering an ideal customer experience that consistently reflects your brand automatically builds goodwill with your customers. When the thoughtful application of the principles of creating brand equity dovetails with customer experience design that builds goodwill, it’s a win-win.
  • Increasing customer loyalty:  Loyal customers are there for the long term, spending more, buying more often, and costing a company less in complaints and problems. They also stick around, simplifying the never-ending challenge of filling the prospect pipeline. So even if an organization spends a bit more to wow its high-value customers, that investment is offset immediately by the enhancement of brand equity.
  • Improving awareness: Delivering a strong customer experience creates happy, loyal, and engaged customers who drive awareness of your company through word of mouth and social media. Increased excitement also attracts media attention (ideally for an exciting new release rather than a spectacular failure), which provides even more advertising that money simply can’t buy.