Brands with high equity are market leaders because the intrinsic value of their brand names makes it easier to acquire and retain customers.

Here are some of the top ways brand equity can improve your marketing ROI:  

Brand equity drives perceived value 

Perceived value is the result of deeply embedded positive brand associations in the minds of customers. It is how brands like Louis Vuitton, Apple, and Adobe can command such high prices in the market, relative to competitors. Customers are willing to pay more for recognizable brand names, regardless of absolute costs, resulting in higher profit margins.  

Brand equity creates customer loyalty 

Brands that carry strong positive associations are more likely to generate brand loyalty, as they receive both intrinsic positive feedback (the satisfaction of purchasing and using a “premium” product) as well as extrinsic feedback (the recognition from others of using something considered “desirable”).  

People who are loyal to a brand are also seven times more likely to forgive brands for mistakes and nine times more likely to try new products from that brand.  

Brand equity reduces customer acquisition costs 

Brand names with high recognition attract customers, relying less on paid advertising. Where an unknown brand might require a full-funnel marketing campaign, a brand with strong equity can generate more awareness with fewer messages.  

Brand equity maximizes customer retention 

Companies with high brand equity typically have high customer retention — a direct effect of brand loyalty. Companies benefit from the recurring revenue of customers who are eager to upgrade or buy new products from them, without needing to invest heavily in customer retention campaigns.  

Take control of legal compliance 

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Companies who want to build positive brand equity should know it’s a long process — but well worth the effort. Although there is no single strategy to follow, companies interested in developing their brand should follow these principles: 

Develop a recognizable brand image 

Invest the time and effort needed to create a clear and recognizable brand — both in terms of visuals and messaging. No matter how a consumer encounters the brand, the experience should be consistent in terms of look and feel and how your brand values are conveyed.  

Build greater brand awareness 

Once you have a consistent brand to promote, it’s time to share it broadly. Engage with different communities both online and in person through various mediums: social media, videos, articles, events, etc.  

Clarify values and emphasize positive associations 

Listen to your target audience and tap into what matters most to them — and then consistently position your brand as aligned with those values. By giving consumers a “why” to support your brand, you’ll drive greater loyalty and create the consistency necessary to generate a strong brand image. 

Give people time to love you 

People are quick to purchase from a brand they trust and slow to try anything new.If you want new customers to try your (as yet) unknown brand, they need time to think, compare, test, and purchase.Especially in a B2B setting, factor in a long sales process with multiple touchpoints.  

Lean into the comparison 

It may be scary to reference better-known competitors, but your consumers are already comparing you. Make the decision-making process easier for them by providing comparison tables that show how you stack up to the competition — and what sets you apart.  

Take control of all branded content 

The bigger a company gets, the harder it is to control brand consistency — especially when rolling out new products or other brand updates. Make sure you have a system in place to centralize brand management and give employees access to all the latest brand assets.