Business leaders all want to deliver a branding strategy that makes their brand stand out, creating the right brand image is vital… and that’s where strong brand equity comes in.
What is brand equity?
Brand equity refers to the value a brand adds to a business, beyond its physical products or services. It’s the emotional and financial resonance a brand creates with its audience. This value stems from how people perceive your brand—whether they trust it, feel connected to it, or prefer it over competitors. Think of it as the goodwill your brand has built up over time, making it more than just a name or logo.
According to Boston Consulting Group (BCG), companies with advanced brand marketing capabilities achieve a return on marketing investment (ROMI) approximately 46% higher than those at the nascent level. This underscores the significant financial benefits of cultivating strong brand equity.
Building your brand equity
The most valuable thing you own as a business is your brand. That goes way beyond the shiny logo on your marketing collateral, it’s the very essence of your organisation.
Want to get technical? Brand equity is the commercial value that derives from consumer perception of your brand name or of your particular products or services, rather than the pure value of the product or service itself.
So what does all that mean in simple terms? It’s all about how amazing people think you are. Building positive brand equity is about being fantastic from the roots to the tips of your organisation. To do that, you need to understand some vital elements of how to appropriately steer your brand.
What is brand image?
Brand image isn’t about how you look, although admittedly that has a role to play, it’s about how people think of you as a brand. Think of it like this—brand image isn’t what you tell people you are, it’s how they talk about you behind your back. It exists whether you engage with it or not.
Brand image can be a confusing term, but understanding this vital definition forms the foundation for your brand equity.
The world of social media and connected communications means brand image is more vital than ever. Conversations about your business can be fast-paced and rapidly evolving. That means negative stories about your business can quickly snowball to create significant damage to your brand equity. It’s not all bad news though. A positive brand story has greater potential than ever to gain traction and reinforce people’s image of your brand.
Branding and marketing work together
If we’re talking about the opportunity for positive brand stories, we need to discuss how branding and marketing work in partnership. It’s a common mistake to get these two concepts confused.
- Branding is the fundamental story of your organisation’s identity
- Marketing frames the efforts you undertake to communicate and amplify that story
Understanding how these two concepts differ, and crucially how they can work together to complement each other, is an important part of the journey.
Utilising effective marketing to amplify positive brand image and communicate your brand stories is an important part of building valuable brand equity.
You need a branding strategy
Brand equity doesn’t materialise out of thin air—it requires deliberate effort and a well-thought-out branding strategy to nurture and sustain it. A strong branding strategy ensures that excellence isn’t just an occasional outcome but a fundamental principle embedded in your organisation’s identity.
Strategically defining your brand’s journey is critical. It helps you clearly articulate who you are while maintaining consistency in how your story is understood both internally and externally. This clarity not only fosters trust but also reinforces your brand’s presence in the marketplace.
Moreover, research highlights the importance of focusing on customer retention—something underpinned by a good brand image. Companies that prioritise retaining customers can be up to 60% more profitable than those emphasising acquisition. This underscores the role of a branding strategy designed to foster loyalty and build long-term relationships, which are vital for sustained brand equity.
Content Nation worked with award-winning fintech startup Swipey to develop a brand identity that would standout in a crowded market. We worked closely with the brand to understand their audience, and the strict regulatory environment in which they operated.
Swipey’s brand identity has now become a core part of their vision, a striking and engaging story of how they empower the digital-first generation with their solutions. Swipey’s brand guide has been successfully implemented by their growing list of global partners, ensuring consistency and quality across all market touchpoints.
This is a clear example of how building positive brand equity isn’t just about aspiration—it’s about actionable planning and consistent delivery. Let your branding strategy be the cornerstone of your success.
A branding process is on-going
The branding process is about defining what and who your business is. Nurturing that understanding requires a detailed analysis of everything from your brand reputation to a fundamental appreciation of the quality of the product or service you offer.
While the strategic elements of brand strategy are about understanding key areas to focus your efforts, it’s important to ensure you remain aware of four key areas of branding:
- Reputation – building trust and understanding
- Responsibility – positive actions that build a positive image
- Quality – consistency in quality of delivery
- Recognition – building and protecting your brand recognition
Rebranding is always an option
A brand can never afford to be static, so don’t be afraid of the power of radical change. As your customers and market conditions change, you should be ready to change with it.
Sometimes these changes take the form of incremental evolutions, a shift in the way you look or operate to keep pace with changing perceptions. Sometimes those changes can become a little more radical.
Rebranding is the process of crafting a whole new direction and image for your brand. It’s brave, bold, ambitious, and it can have huge positive results if delivered properly. You shouldn’t be afraid of taking this step if the situation arises. Remember a rebrand isn’t about turning your back on who you are as a business, it’s about taking an exciting new step on the journey to build your brand equity.
Ready to strengthen your brand? Partner with experts who can turn your story into lasting success—get started with us today!
