Brand equity is the amount of leverage that a particular brand name or image has on the mind of consumers and the value associated with the image surrounding that brand. Businesses foster heightened brand equity by offering unique, positive experiences to their customers that facilitate repeat buying patterns, brand loyalty, and sway purchasing behaviors over competitors. Organizations can achieve more significant brand equity by effectively identifying their target consumers, aligning with their values, and offering high-quality, satisfactory products or services. Additionally, brands that reward their loyal customers with unique programs and retention efforts can help push even greater brand equity by establishing a rapport with existing loyalists. Keeping customers happy and rewarding them for their loyalty is an effective and proven strategy to retain current buyers and reduce the likelihood of switching to competitor offerings.
Two fundamental aspects of brand equity include brand awareness and brand experience. These two sectors of brand equity are crucial to understanding, and without one or the other, it can mean devastation for a brand.