What is brand equity?
Making the sale is what ensures cash flow for the company. But sustained profits and shareholder value come from building brand equity (the likelihood of continued sales) in the market. We define that equity in ten stages of development from consumer inertia to advocacy. These stages form our strategic framework.
It starts with inertia: The consumer’s natural state of brand nescience as reflected in the absence of brand recognition or recall among a defined target group with reference to a specified category. The objective is to move the target from this state to the state of brand advocate as efficiently as possible.
- Consumer Inertia The presence of a relevant want or need (either latent or expressed) among a defined market segment, but no movement towards the desired state of brand advocacy. I.E. “I want my little Jimmy to draw, but my problem is that he scribbles all over the walls.”
- Consumer Awareness
I see you. I.E. “I read about your new product on a mommy blog”
- Consumer Understanding
I understand what you offer in relation to my needs and my product categories. I.E. “You sell crayons for kids, like my little Jimmy, to draw with.”
- Consumer Interest
Your offer is relevant, believable and different from other options that are available to me. I.E. “Your crayons are water soluble so they wash off easy, especially walls”.
- Consumer Trust
I trust you enough to give you the benefit of the doubt. I.E. “But will the crayons still be fun to draw with? Wait, you’re Crayola, I’ve know you all my life. You know about kids and crayons.”
- Consumer Trial
I’ll try your product. I.E. “They cost about the same as normal crayons, I’m going to buy a pack for little Jimmy.”
- Consumer Belief
I believe you. I.E. “Wow, they really work as promised!
- Consumer Affinity
You reflect the beliefs, values and convictions that I stand for. I.E. “You really get me. We have a lot in common.”
- Consumer Loyalty
I want to stay with you. I.E. “From now on, these are the crayons for me.”
- Consumer Advocacy
I want to let others know about you. I.E. “I’m posting little Jimmy’s drawings on your gallery site and sharing them with my friends on Twitter and Facebook.”
At any moment in time, your target market will be spread across the different stages from inertia to advocacy. We provide the conceptual framework, market insights and communication strategy to get them moving towards brand advocacy and measure their progress along the way.