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Brand equity is a marketing term that relates to your brand’s value. When your brand is perceived to be well known or having strong brand awareness, it will have a stronger value.
The more people who think positively of your brand, the higher your brand equity.
Why is Brand Equity Important?
When you build a strong brand, you’ll not only be able to charge higher but you will also improve brand loyalty. Establishing a strong, positive brand that your customers’ value will allow to charge higher, earn more revenue, and reduce overall costs.
Since customers are already familiar with your products or services as well as enjoying the overall customer journey, you can spend less on ads and less time educating the public about what you do.
Brand equity comes from a range of influences, such as your marketing efforts and interactions with customer service. The more you can capture the respect and recognition from your consumers, the more likely they will be willing to spend more money on your products or services.
Focusing on your brand equity is the key to creating loyal customers.