Brand perception refers to the reality of how consumers view the company products and services. Whereas brand identity is the image the business is building, brand perception is the image that is currently in the mind of the client. Brand equity goes hand in hand with customer experience.
How do customers react to the service or product? It builds and develops the brand. Brands have to deliver on the expectations of the consumer.
What Is Brand Equity?
Brand equity describes a brand’s value. It encompasses the assets and liabilities affiliated with both the name and symbol of a business brand. They both can add and subtract the value offered by a service or product.
Brand equity has several elements:
- Loyalty of the brand;
- Brand awareness;
- Perception of quality;
- Associations of the brand.
Measuring brand perception will allow the business to know what the consumers are saying about the brand. There are various ways of measuring brand perception. Some are easy while others are complex.
Continuously having unhappy customers leads to a bad reputation. The results of negative experience and feedback cause a brand to have a lousy perception from the consumers. Positive brand perception adds value to a brand. For instance, a product that has excellent attitude can have its price increased. In addition to that, there is a ripple effect from a product that has good equity. The business hence can generate more income from the brand. Besides, a company can boost its stock price.
Who Can Use Brand Equity Perception?
The marketing department can research to know how a brand equity is performing. The research is done using various methods such as focus groups, surveys, social media analysis tools, and brand display campaigns. It is essential to use several methods to measure brand perception. The results should be compared to get the real picture.
The marketer has to understand the opinions of the client. It is because customer opinion builds up brand equity and perception. It is crucial to find out what the consumer thinks of your brand.
- Is the consumer satisfied with the brand?
- What is the experience of the consumer?
- What is it that the customer believes the brand represents?
The marketing department should understand that brand equity contains both tangible and intangible factors. Measuring brand equity is supposed to be objective in every possible way.
How Important Is Brand Equity to a Business?
It is beneficial to the organization that brand assets outdo brand liabilities. Brand equity can be engaged and tailored to increase loyalty. Effective customer relations can be used to shape pricing of products and services. Some of the benefits of brand equity to business:
- Improved customer loyalty: Brand equity has a direct relation with customer loyalty. Returning customers are vital to a company. Similarly, improved customer loyalty ensures that the brand has the opportunity to acquire new customers.
- Optimized pricing: A brand equity that is performing exceptionally well can accommodate an increase in pricing without affecting existing and new customers.
- Wider brand: A positive brand can boost the sales of other products and services. Consumers tend to trust a brand that is performing well. This trust can be leveraged to increase the sales of products under the same brand.
- Stronger customer relations: Consumers always have a connection with a brand. A positive brand equity can encourage this relationship to extend to other products in the business. The business has the opportunity to make more sales, introduce new products and increase the sales of all other products across the board.
How to Measure Perception: 5 Paths
A social networking site provides a means to start little and build up brand equity. These sites encourage sharing of information. They paint a current reality of how the consumer perceives the brand. An analysis of conversations on social media sites ensures the marketing department understands the issues contributing to the brand equity.
Likewise, specific social listening tools such as Brandwatch help to analyze the social media feedback on the brand. It is easier to respond effectively to adverse sentiments from analyzed conversations. However, social media analysis is only but one method of measuring perception. The other plans include:
1. Focus Groups
They are small groups of people between five and ten. The teams get questions about the brand. They have the freedom to discuss issues concerning the product and services from the advertisement, to the presentation and pricing.
Engaging the customers in a study is essential. It will make it possible to know and understand why the brand equity has its current level. The business can use this opportunity to find out what they think should be done to improve customer experience from the clients.
After gathering data, the business should carry out an analysis. However, it is essential to remember the objective of the report: brand equity.
3. Measuring Results
The company must answer the questions that arise from the analysis. Additionally, the results of the investigation are put in comparison with results of previous surveys. Every survey is meant to be better than the last one.
4. Brand Equity Campaigns
Campaigns are an efficient way to improve brand awareness. They encourage engagement with the consumers. Campaign success can be measured as well.
For example, dwell time is used to measure the particular effectiveness of branding. People tend to get attached to brands they see and engage with often.
5. Market Research
Your company should undertake a study to find out the reason why customers are buying or not buying the products. Brand equity begins with the company. For instance, advertising has to play its role efficiently to enhance brand equity.
The identity of the brand should represent what the consumers feel. The business must have a culture that emphasizes on quality and excellent service. Besides, the employees have to believe and talk positively about the brand.
Consumer perception works alongside other forms of marketing. The ripple effect of brand equity should integrate into the pricing strategy to improve sales.
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