There’s a long list of branding terms that every entrepreneur, business owner, and especially brand or marketing manager need to know. Two of which, brand awareness and brand equity, should be at the very top of that list. Why those two terms? Because they’re directly related to an audience’s perception and engagement with a brand. Read on to learn more about the difference between brand equity and awareness, and discover how to measure them to reach your brand’s potential.
Brand awareness and brand equity are sometimes used interchangeably and it’s really important they’re not. They represent two different factors when it comes to branding.
What is brand awareness?
Brand awareness is the familiarity an audience has with a brand through its qualities or images.
Think popularity, logo recognition, or engaged social media. Brand awareness is tied to what an audience remembers about a brand.
And what is brand equity?
Brand equity is the actual commercial value that comes from audience perception of a brand.
Why do you pick a particular product or service over another of the very same type? Probably because of its branding. A person will pick a specific brand over another even though the second brand being a better product because of effective branding. In other words, branding can make a product or service more valuable and trustworthy.
Brand Awareness, Brand Equity - Why the Confusion?
Despite the very different definitions brand awareness and brand equity have, people still confuse them. This might be because brand awareness actually falls under the category of brand equity. To explain: brand equity can be looked at from three perspectives: customer mindset, product marketing outcomes, and financial marketing outcomes.
Brand awareness is part of customer mindset and what determines brand awareness is also what determines financial outcomes. To make it even clearer, brand awareness is an element of brand equity that should be treated as an individual component that affects overall brand equity. It’s a significant detail part of a much larger picture.
How to Build Brand Awareness
Increasing brand awareness means increasing brand equity, and increasing brand equity means increasing financial outcomes. There are a few ways to increase brand awareness. Make sure to build and sell quality products or services. Focus on brand strategy immediately and establish a strong brand presence. Brand recognition comes a long way in times of distress or when customers need to pick between two brands.
Speaking of customers, pay attention to customer satisfaction. Be friendly, exceed expectations, and practice accountability. Another way to increase brand awareness is to partner with trusted companies and leverage their presence to help your brand. Don’t forget the technicalities and invest in a creative, but qualified marketing team.
How to Build Brand Equity
Establishing a system of building brand awareness means being one step further in developing brand equity. Brand equity is strengthened by factors of brand awareness, identity, and loyalty. Awareness is the memory customers have of a brand. Identity is what makes a brand stand out in the market. Make sure the brand identity is consistent with a universal tone, imagery, and engagement on all mediums whether it be on social media or the brand’s website. Build loyalty to create an audience that follows and trusts a brand. This can be done word of mouth or by offering incentives.
How to Measure Brand Awareness
Brand identity and loyalty are important factors that contribute to brand awareness. Keeping track of those factors and measuring brand awareness is crucial to the success of any brand.There are a variety of ways to measure brand awareness. Do it using a search volume tool to see what keywords people use to find a brand’s website. Track its traffic. See where a brand is mentioned on social media, list a brand on review sites, or distribute surveys.
How to Measure Brand Equity
Use the information provided by measuring brand awareness to also measure brand equity.Knowing how to measure brand equity means knowing how to build brand equity, and that’s invaluable knowledge. Measuring brand equity involves checking on your shareholders, tracking finances, and knowing customer expectations, all while be conscious of brand awareness. Use a tool like Latana to keep track of your progress with features that measure your brand’s growth, audience perception, brand performance, and compare with your competitors for even more insight.
What Better Brand Awareness Can Do for Your Brand Equity
Having strong brand awareness provides a ton of benefits. Expect increased customer loyalty.The more aware of a brand people are the more likely they are to trust and choose it; familiarity is security. Brand awareness also serves as a great measurement of success and indicate to investors that it’s a brand worth investing in. Major brands exist for a reason.
Apple is one of the most valuable brands in the world with an extensive reach in terms of its audience or customers. It’s not about cost. People are willing to pay for Apple products, despite a high price tag. Apple’s iconic and universal logo makes the company’s products easily identifiable. No doubt that Apple’s clever marketing campaigns are supported by a strong team.The exceptional and consistent customer service provided at its retail stores and Genius Bars also contributes to customers purchasing and repurchasing their products.
Getting to the level of brand equity and awareness that Apple has reached is certainly no easy task. But looking at an example like Apple makes one realize just how important brand equity is to the success of a company. Build brand equity to build a loyalty base of customers who are willing to pay more and encourage others to do the same.
Get More with Better Brand Awareness and Equity
Great brand equity doesn’t just mean thinking about customers. Again, consider potential or current investors and who or what they want to invest in and continue to invest in. Having an established brand provides more options in getting financing to allow a brand to expand and have better negotiating power.
The difference between brand awareness and brand equity may seem complicated at first and they definitely overlap. But think of brand awareness as a major ingredient to an entire dish, brand equity. Knowing the difference and measuring them separately could be that detail that gets your brand ahead of the rest.