Contrary to popular belief, brand equity and brand awareness are not the same thing. While brand equity refers to customers’ perceived value of the brand, brand awareness measures how aware consumers are of a brand.
In the branding industry, the phrases “brand awareness” and “brand equity” are sometimes used synonymously as if they were the same thing. However, they actually refer to rather distinct things, and understanding the difference has the capacity to boost your revenue and take your company to a new level.
86% of customers who are loyal to a brand will tell their friends or family about it and 66% are more inclined to provide a good review. These activities promote brand awareness and company growth, both of which are beneficial to your firm.
Brand awareness plays a main role in customers’ decision making. It refers to whether customers can recall or recognize your brand or simply whether or not they know about you. Why consumers wear a particular brand of apparel or choose one pasta sauce over another at the grocery store is influenced by brand awareness or the thoughts and feelings connected with a company. Consumer attitudes regarding a brand are difficult to modify after they have been formed. Brands strive hard to instill positive connections rather than negative or neutral images in consumers’ minds.
Knowing how customers feel about your brand makes it simpler to influence that perception, educate them about its unique selling proposition and build brand equity. This is accomplished by gauging consumer emotion over time and measuring brand perception.
A brand’s perceived value as seen by its customers is referred to as brand equity. It combines the opinions, experiences and perceptions of customers about your brand.
Brand equity can therefore be either beneficial or bad. Positive brand equity exists when consumers have positive opinions of a company based on their prior interactions with it. However, if consumers have a negative image of the company or receive poor customer service, they are less inclined to use the brand again or recommend it to their friends. A case of poor brand equity is this.
The basis of brand equity is brand awareness. “A robust basis for brand equity requires that consumers have the appropriate depth and breadth of awareness and strong, favorable, and unique connections with the brand in their memory. According to this definition, brand equity and brand awareness are sometimes used synonymously. They are not equivalent, as this article has demonstrated. Both must be worked on independently, but collectively they will create a powerful brand.
Remember that once someone is familiar with your brand, they will be more likely to choose you over other similar companies, recognize you on sight and make purchases from you.