How brand equity develops
Brand equity is developed with every positive experience a consumer has with your brand. It starts with a consumer’s first exposure to the brand and continues to increase as the customer journey continues.
A prospective customer is first introduced to Brand X through some form of advertising or marketing. They then familiarize themselves with Brand X by researching it online, seeing other advertising, reading reviews, or hearing about it from existing customers.
The true test of Brand X comes when the prospective customer commits to trying the product. They may initiate a free trial offer or purchase a product. If they have a positive experience, they are likely to continue with Brand X and may even try other its products/services.
Brand loyalty occurs when the customer chooses Brand X over similar competitors and tells others about the positive experiences they’ve had with Brand X.
Over the course of this process, Brand X has:
- Acquired a new customer
- Satisfied the customer
- Retained the customer
- Earned word of mouth referrals
Because of their newfound loyalty and trust in Brand X, this customer is now apt to be willing to pay more for a product produced by them. Brand X has now earned brand equity.
It’s important to note that brand equity can increase or d