Introduction
Brand equity refers to the value of a brand. It is determined by consumers’ perception of the brand. Accordingly, the perception results in the consumers holding a positive or negative effect on the service. Therefore, brand equity can be positive or negative.
If consumers think highly of a brand, it has positive brand equity. Consequently, it will result in a purchase that will be beneficial for the company. In other words, it will bring a company higher sales, increased profits and customer loyalty.
However, if the brand fails to live up to consumer expectations, it has negative brand equity. As a result, consumers will purchase the generic product or a competitor’s services. Hence, the company should work on the service quality along with the features of the offerings.
Brand equity for lawyers is established by creating positive experiences. These experiences entice consumers to continue purchasing from them over competitors. Having positive brand equity gives certain values to your company. For instance- profits, ease of introducing a new line of services, farther reach, customer loyalty and more.
Benefits of developing Brand Equity
Developing greater market share
Managing brand equity is essential in achieving several competitive benefits, which will drive profitable growth. For example, developing your brand equity will give you a competitive edge in the marketplace. When using your USP you can appeal to the customers and stand out from the competitors.
Furthermore, positive brand equity increases market share. As the brand is widely known, it is recognized and preferred by consumers. in addition, brand equity enhances a customer’s confidence in the purchase decision.
Charging a price premium
The price premium is also known as the relative price. It is the percentage that a product’s selling price exceeds or falls short of a benchmark price. When you have better brand equity, you’re able to charge more for the service. Additionally, you can increase your price premium percentage over the market average. This can be a good overall metric to measure your product’s financial performance.
Product line extensions
With a high level of brand equity, customers will be more likely to continue their business with you. Positive brand equity for lawyers can be transferred to a different product line. As a result, it can increase sales and revenues for the company. Brands with high brand equity have significantly less risk when introducing new products. This is due to the positive brand associations and the brand loyalty it inspires.
Greater impact
With increased revenue and market dominance, you can use your high brand equity in several ways. For example, to form new partnerships, inspect better supplier rates or more. This could lead to collaborations, business ventures or investment opportunities.
How to Build Brand Equity?
Building strong brand equity for lawyers is the foundation for an organization’s long-term success. Marketers can reinforce brand equity by actively investing in the components of brand equity. Here are some strategies that you can leverage in order to effectively build and improve your brand equity:
1. Build Value in your Offerings
Customers are choosing your brand through the quality of your services and the feelings they have developed towards them. Hence, add more value to each service to gain brand equity. For a start, consider how well your service meets the needs of customers. Not just the physical ones, but social and psychological needs as well. Hence, strive to offer useful service and commit to social responsibility. As a result, this will attract customers who share those values.
2. Manage your Brand Image
To manage brand equity for lawyers, you have to manage brand image over time. This involves maintaining the same brand promise you have made to existing customers. it also includes the brand promise you are going to make to the new customers. For premium brands, the brand image is the only reason that the brands sell at a high margin.
3. Practice Continuous Expansion
Strong brand equity for lawyers is built and managed by brands that mastered the expansion technique. The expansion can be product expansion or geographical expansion. A business expansion gives certain assurance to customers. For example, capability and the operational size of the business enterprise. In addition, there are more interactions and touchpoints between the brand and the customer. In other words- more opportunities are given to the brand for managing brand equity.
4. Build Brand awareness
Creating and building brand awareness is a way of maintaining the brand image. Start by creating positive and unique brand attributes that consumers will retain in their minds. Make sure your customers recognize your brand when they’re looking for services. Moreover, they perceive it in the way you intend. There are several ways you can do this:
- Use the same logo to ensure your branding is consistent
- Provide exceptional customer service
- Share a unique story about your brand
- Keep in touch via email or newsletters
- Share useful content such as blogs, tweets, articles etc.
In addition, advertise your brand on different media, engage with various communities or create viral content. By building your brand awareness, you will achieve high brand equity. Consequently, a brand with high brand equity will occupy a prominent position in consumers’ minds. For example, when a customer searches for a particular service he will have your brand in mind.
5. Emphasize Positive Brand Associations
Brand association involves anything related to the brand, which evokes positive or negative sentiments. For example, a product’s functional, social or emotional benefits. More broadly, this relates to the brand’s overall image, and what consumers associate with that image. If consumers associate positive attributes with the brand, the brand possesses high brand equity. Accordingly, strong brand associations are crucial to building loyalty towards your brand.
6. Focus on your customers
When fostering positive customer feelings, they’re more likely to become loyal customers and your brand’s advocates. Emotional appeal can result in customers purchasing more services from your brand. When feeling like a part of your community, they will act as your brand ambassadors. For example, promoting your services for you through social media.
It is, therefore, essential to build and maintain positive relationships with your target audience by:
- Staying in touch with customers via social media
- Providing excellent customer service at all times
- Tracking negative press or feedback, listening and responding
- Utilizing recent trending and preferences
However, consumer preferences, beliefs, needs and wants keep changing with time. Hence, it’s important to stay ahead of the trends and forecast the customer preferences of the future. By understanding the requirements of the customers, your brand will be able to fulfill their needs.
7. Maintain consistency
Brand equity management is a slow process, filled with lots of potentials to explore over the years. Thus, it’s important to stay on track and remain dedicated to achieving your goals. Your brand beliefs, values and Unique Selling Proposition should remain consistent.
In other words- your consumers should not be confused about what your brand stands for. In addition, focus on your brand elements and be proactive in brand building. As a result, you will be able to grow your brand’s value. This involves using branding elements and tools to attract and retain the customer’s interest.
How to Measure Brand Equity
There are multiple methods to measure equity through brand tracking efforts. Three core brand equity drivers that you need to track:
- Financial metrics
- Strength metrics
- Consumer metrics
Financial metrics
Extract the information from the following metrics:
- Data market share
- Profitability
- Revenue
- Price
- Growth rate
- Cost to retain customers
- Cost to acquire new customers
- Branding investment
Use financial metrics data to demonstrate how important your brand is to the business. Accordingly, secure higher marketing budgets to continue growing.
Strength metrics
Track brand awareness, accessibility, customer loyalty, retention, licensing potential and brand ‘buzz’. Also, monitor social media and survey your public. That way you will get a picture of how well your brand is known and respected.
Consumer metrics
It’s essential to track consumer purchasing behavior and sentiment towards your brand. Track and measure brand relevance, emotional connection, value, and brand perception through surveys and social media monitoring.
Conclusion
Brand equity represents the value of a brand. It is based on a consumer’s awareness of a brand and the associations they make with it. Also, it is based on the way they perceive the service quality. Finally, it is associated with the level of loyalty they express towards it. Brand equity is high when a customer feels a bond with it. The better your brand equity, the more competitive advantage you have over the long run. There are many advantages of managing brand equity for lawyers. For a start, the above strategies can help you with it.