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 the purchase that will be beneficial for the company. In terms of 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. Consequently, the company needs to work on the service quality along with the features and attributes of the offerings.
Brand equity for lawyers is established by creating positive experiences that entice consumers to continue purchasing from them over competitors. Having a positive brand equity gives certain values to your company. For instance, increased sales, profits, ease of introducing new line of services, farther reach, customer loyalty and more.
Benefits of developing Brand Equity
Developing greater market share
Managing brand equity over time 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 Unique selling proposition 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. Brand equity enhances a customer’s ability to interpret and process information by improving their confidence in the purchase decision.
Charging a price premium
The price premium, also known as relative price 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, to 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
When you have a high level of brand equity, customers will be more likely to continue their business with you and try your latest services. 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 are exposed to significantly less risk when introducing line extensions or developing new products. This is due to the positive associations which the brand triggers and the brand loyalty it inspires.
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 open the door 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 all the services you have and the feelings they have developed towards them. Hence, the more value you add to each service, the more likely it is you will manage brand equity. Consider how well your service meets the needs of customers. Not just the physical ones, but social and psychological needs as well. If your company offers useful service and genuinely commits to social responsibility, it 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 a long period of time. This involves maintaining the same brand promise you have made to existing customers. Or 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
A strong brand equity for lawyers is always built and managed by brands which 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 touch points between the brand and the customer. In other words- more opportunities 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 which consumers will retain in their minds. Make sure your customers recognize your brand when they’re looking for services. Moreover, that 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 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 predominantly positive attributes with the brand, then 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 and judgments, they’re more likely to become loyal customers and your brand’s advocates. Emotional appeal can result in customers getting involved with the brand and purchasing more services from it. When feeling as the part of your community, they will act as your brand ambassadors, 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 one step ahead of the trend and to 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 potential to explore over the years. That’s why it’s important to stay on track and remain dedicated towards achieving your goals. For a start, consistency over a long period of time is mandatory for a product to become a brand.
Brand beliefs, values and USP should remain consistent. In other words- your consumers should not be confused or in doubt about what your brand stands for. Consequently, re-align your future tactical strategies with changing consumer needs, external economic and social factors.
Focus on your brand elements and be proactive in brand building in order to grow your brand’s value. This involves using all tools and elements of branding to attract and retain the customer interest towards the brand.
How to Measure Brand Equity
Depending on the goals of your branding efforts, 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
Extract the information from the following metrics. Data market share, profitability, revenue, price, growth rate, cost to retain customers, cost to acquire new customers and branding investment. You can use solid financial metrics data to demonstrate how important your brand is to the business. And secure higher marketing budgets to continue growing.
Track awareness and knowledge of the brand, accessibility, customer loyalty, retention, licensing potential and brand ‘buzz’. Also, monitor social media and survey the public to get a picture of how your brand is known and respected.
It’s essential that you 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.
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. But also on the way they perceive the quality of its services and the level of loyalty they express towards it. Brand equity is high when a brand is recognized and trusted to the point that the customer feels a bond with it. The better your brand equity, the more competitive advantage you have over a long run. There are many advantages of managing brand equity for lawyers and the above strategies can help you with the same.