Brand equity measures the amount of value a brand has to customers based on its recognizability and positioning in the market.
In today’s fast-paced, saturated ecommerce world, customer experiences are everything. Brand equity is a measurement of how successful a brand is in creating positive experiences through customer interactions. It also refers to the level of value a brand has to its customer base. As the brand becomes increasingly more identifiable and creates more positive experiences, its equity within the market increases as well.
Brands build on their equity by being reliable; delivering on their promises; connecting with their customers’ needs and values; and steadily generating more awareness.
The main reason brands should strive for a high level of equity in the market is because it generally corresponds with an increase in conversions as well. When customers can easily identify and quickly build trust with a brand, they’re more likely to purchase from that business. When that trust is broken, customers are quick to jump to the competition.