- \n
- Brand equity is the value a brand holds in the minds of consumers, beyond the actual product or service it offers.<\/li>\n
- Strong brand equity boosts the perceived value of a business\u2019s products or services, positively impacts profits, builds customer loyalty and gives a competitive edge.<\/li>\n
- The two most popular models for understanding the key components of brand equity are David Aaker\u2019s and Kevin Keller\u2019s models.<\/li>\n
- Evaluate brand awareness, brand loyalty, market share, financial metrics, brand associations and perceived quality to measure brand equity.<\/li>\n
- Businesses need to boost brand awareness, build positive associations, improve perceived quality, position their brand effectively, increase customer loyalty and create brand resonance to build brand equity.<\/li>\n<\/ul>\n <\/div>\n <\/div>\n <\/div>\n<\/section>\n\n\n\n
What is brand equity?<\/h2>\n\n\n\n
Brand equity is a way of evaluating how much a brand is worth in the eyes of its customers.<\/strong> Put simply, brand equity represents the perceived value of a brand. It lives in customers\u2019 minds, whereas actual value is the financial worth of that equity. It\u2019s the added value that well-known branding<\/a> gives to a product or service, beyond the actual product itself.<\/p>\n\n\n\n
Picture two identical products on a shelf \u2013 one with a name you know and trust and one without. Which one do you pick? The one you know. That\u2019s brand equity at work. Think of it like a reputation score. The more people recognize, trust and feel good about your brand, the more valuable it becomes. It\u2019s what makes you pick Nike over generic sneakers or Coca-Cola over unbranded supermarket soda.<\/p>\n\n\n
\n![\"Branded](\"https:\/\/res.cloudinary.com\/vistaprint\/images\/w_1024,h_557,c_scale\/f_auto,q_auto\/v1763645484\/ideas-and-advice-prod\/blogadmin\/image-64_43382c0900\/image-64_43382c0900.jpeg?_i=AA\")
<\/figure>\n<\/div>\n\n\nBut it\u2019s not just about awareness, it\u2019s about what people feel when they hear your brand name. Positive brand equity means customers are willing to pay a little more, instinctively think of your brand when searching for a product, remain loyal when new options pop up and even recommend you to their friends.<\/p>\n\n\n\n
Examples of brand equity<\/h3>\n\n\n\n
We\u2019ve already mentioned a couple of big names with strong brand equity, but let\u2019s explore some other familiar examples to understand how brand equity plays out in the real world.<\/p>\n\n\n\n
- \n
- Apple:<\/strong> Apple\u2019s brand equity is legendary. With Apple products, customers aren\u2019t just buying gadgets; they\u2019re buying into a lifestyle. The perceived quality and brand loyalty mean people line up for hours (or even days) just to get their hands on the latest release and don\u2019t think twice about paying premium prices to stay aligned with the brand.<\/li>\n\n\n\n
- LEGO:<\/strong> What began as a simple toy brand has become a cultural icon. LEGO\u2019s brand equity is anchored in creativity, nostalgia and quality. They\u2019ve expanded beyond plastic building blocks into movies, video games and theme parks, all while maintaining a reputation for reliability. That trust means parents and kids choose LEGO, even when similar products are available at lower prices.<\/li>\n\n\n\n
- Amazon: <\/strong>Amazon\u2019s brand equity is grounded in convenience, fast delivery and vast product selection. They\u2019ve created a brand that\u2019s all about customer satisfaction and ease of use. That trust in the Amazon name is why so many turn to them first and why Amazon has been able to expand into nearly every retail category while keeping customers loyal.<\/li>\n<\/ul>\n\n\n\n
Why is brand equity important to your business?<\/h2>\n\n\n\n
As seen from the real-life examples of globally recognized brands, strong brand equity makes businesses stand out in a crowded market and drives long-term success. Let\u2019s break down why solid brand equity matters and the key benefits it can bring to your business.<\/p>\n\n\n\n
Higher perceived value<\/h3>\n\n\n\n
When a brand has strong equity, its products or services are perceived as more valuable, regardless of production costs. Customers are willing to pay premium prices because they associate the brand with higher quality or status. That\u2019s why people choose an Apple iPhone or a LEGO set \u2013 they trust the brand to deliver something extra that makes the higher price worth it.<\/p>\n\n\n
\n![\"Higher](\"https:\/\/res.cloudinary.com\/vistaprint\/images\/w_1024,h_424,c_scale\/f_auto,q_auto\/v1763645575\/ideas-and-advice-prod\/blogadmin\/image-65\/image-65.jpeg?_i=AA\")
<\/figure>\n<\/div>\n\n\nFinancial impact<\/h3>\n\n\n\n
The higher perceived value of products from brands with positive equity lets them charge more, directly impacting the bottom line. Beyond a business\u2019s pricing strategy, a well-known brand also \u201cspeaks for itself\u201d and influences the brand\u2019s advertising needs. Brands with high equity depend less on day-to-day ads for direct sales. Instead, marketing resources can focus more on brand values than the product and they can be used over and over \u2013 sometimes for decades (think of the classic Coca-Cola Santa or Cadbury\u2019s Easter rabbit auditions).\u00a0<\/p>\n\n\n\n
Customer loyalty<\/h3>\n\n\n\n
A positive brand reputation leads to greater trust, satisfaction and loyalty. Even when prices rise, customers who feel connected to your brand tend to stay. This results in repeat business from customers who choose your product because they believe in what your brand represents.<\/p>\n\n\n\n
Competitive advantage<\/h3>\n\n\n\n
In a competitive market, strong brand equity can be the tipping point for customers. Even if your product is similar to others, effective brand positioning gives you a distinct advantage, keeping your brand relevant despite shifting trends and market changes. <\/p>\n\n\n\n
Brand equity models: Aaker\u2019s and Keller\u2019s<\/h2>\n\n\n\n
Different experts have different takes on what brand equity involves and how to build it. Let\u2019s explore two of the most popular models for understanding the key components of brand equity: David Aaker and Kevin Keller\u2019s models.<\/p>\n\n\n\n
Aaker\u2019s brand equity model (what to build)<\/h3>\n\n\n\n
David Aaker\u2019s model identifies four core components that contribute to brand equity.<\/p>\n\n\n
\n![\"Infographic](\"https:\/\/res.cloudinary.com\/vistaprint\/images\/w_1600,h_889,c_scale\/f_auto,q_auto\/v1763645567\/ideas-and-advice-prod\/blogadmin\/image-66\/image-66.jpeg?_i=AA\")
<\/figure>\n<\/div>\n\n\nBrand awareness<\/h4>\n\n\n\n
This is all about recognition. Do people know your brand exists? The more familiar your brand is, the easier it is to attract customers. Think of Pepsi \u2013 nearly everyone can recognize the Pepsi logo<\/a> and its brand colors.<\/p>\n\n\n
\n<\/figure>\n<\/div>\n\n\n
Brand loyalty<\/h4>\n\n\n\n
Loyal customers are the backbone of strong brand equity. It\u2019s about repeat business and customers choosing your brand over competitors, time and again.<\/p>\n\n\n\n
Perceived quality<\/h4>\n\n\n\n
Brand equity isn\u2019t just about what your product is, but what people think it is. High perceived quality means customers view your product as top-tier, regardless of the competition. Apple is a master at this, with its reputation for design innovation.<\/p>\n\n\n\n
Brand associations<\/h4>\n\n\n\n
These are the images, feelings and thoughts people associate with your brand. When someone thinks of your brand, what pops into their mind? For Nike, it\u2019s motivation and performance. The more positive associations people make with your brand, the stronger your brand equity.<\/p>\n\n\n\n
Keller\u2019s customer-based brand equity model (how equity forms)<\/h3>\n\n\n\n
Kevin Keller\u2019s model focuses on the customer\u2019s perspective. He suggests that brand equity is all about building positive relationships and experiences.<\/p>\n\n\n
\n![\"Blue](\"https:\/\/res.cloudinary.com\/vistaprint\/images\/w_1600,h_889,c_scale\/f_auto,q_auto\/v1763645558\/ideas-and-advice-prod\/blogadmin\/image-67\/image-67.jpeg?_i=AA\")
<\/figure>\n<\/div>\n\n\n<\/p>\n\n\n\n
Keller breaks it down into four fundamental questions that lead to brand resonance \u2013 the ultimate goal of strong brand equity:<\/p>\n\n\n\n
Who are you? <\/h4>\n\n\n\n
This is about brand identity<\/a> \u2013 making sure your audience knows who you are.<\/p>\n\n\n\n
Write a one-sentence brand positioning statement that clearly states who you are, who you serve and what makes you different. Use it consistently across your website, social profiles and sales decks.<\/p>\n\n\n\n
\n \n\n
\n \u201cMy best advice for anyone in the early stages of their journey is to sit down and pull together your mission statement. Because that one thing informs all of your decision making that comes after it. So, as long as you have that clearly defined for yourself, that really is why you should do it.\u201d <\/div>\n\n\n \u2013 Allan, Co-Founder of FRUITLOOTS <\/p>\n <\/blockquote>\n <\/div>\n<\/section>\n\n\n\n
<\/p>\n\n\n\n
What are you? <\/h4>\n\n\n\n
This question tackles the meaning attached to your brand. What does your brand stand for? What does it offer? <\/p>\n\n\n\n
List your top three to five brand attributes (e.g., reliable, innovative, friendly, premium) and top three customer benefits (what people actually gain from you). Use these to guide your messaging, visuals and product decisions.<\/p>\n\n\n\n
For example, Fabiola, CEO and co-founder of Tlali Pani, describes her company: \u201cSo our values are centred on women’s empowerment. We know that women have less access to resources in comparison to other groups. It’s also handcrafted products or handmade products. And really for the reason to reduce waste and consumption.\u201d<\/p>\n\n\n\n
What about you? <\/h4>\n\n\n\n
This is about how customers respond to your brand, their judgments and emotions. How do customers feel about your brand?<\/p>\n\n\n\n
Set up one simple feedback loop (a short post-purchase survey or quarterly customer interviews) and one listening channel (social listening or review monitoring). Track recurring themes in how people describe you.<\/p>\n\n\n\n
\u201cWhen my customers receive my thank you note, they always comment on how beautiful and clear the image looks and how thick the paper is. And so I love that as an extension of my brand, I’m giving them a quality piece that they also are like, \u2018Oh, this is an elevated brand, because this printed piece is elevated.\u2019 So it really allows them to connect even further with my brand. It’s consistent,\u201d says Karen, Founder and CEO of Kanda Chocolates.<\/p>\n\n\n\n
What about you and me? <\/h4>\n\n\n\n
The final step is about building loyalty and connecting with your audience.<\/p>\n\n\n\n
Design one simple initiative that encourages ongoing connection, such as a loyalty program, a members-only newsletter or a recurring community event\/challenge. Make it easy to join and consistently promote it.<\/p>\n\n\n\n
Mike, Co-Founder of WildFlora, does end-of-the-year gifting, for example: \u201cI do client gifting at the end of the year, so we use postcards. I do a hand drawing, and we send it over and make it into postcards so we can send it out with our gift boxes to our clients.\u201d<\/p>\n\n\n\n
What\u2019s the difference \u2013 and do they deliver the same result?<\/h3>\n\n\n\n
Aaker tells you what to strengthen (awareness, loyalty, perceived quality, associations). Keller shows how customers progress toward advocacy. Used together, they converge on the same outcome \u2013 durable equity \u2013 but from different angles: Aaker is a scorecard; Keller is a map.<\/p>\n\n\n\n
The practical steps used below blend both models: Aaker provides the targets to improve each week, and Keller shapes the order of experience (from first impression to long-term relationship).<\/p>\n\n\n\n
How to measure brand equity<\/h2>\n\n\n\n
Start lean. First, get your branding right. There are a number of budget-friendly brand strategies<\/a> to help you get started. Then, try tracking what you can see without surveys or memberships: <\/p>\n\n\n\n
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- Ask \u201cHow did you hear about us?\u201d at checkout, tally weekly.<\/li>\n\n\n\n
- Count completed loyalty-card stamps.<\/li>\n\n\n\n
- Watch review volume\/ratings.<\/li>\n\n\n\n
- Check branded searches for your name in Google Search Console.<\/li>\n<\/ul>\n\n\n\n
A loyalty card, a review QR and a receipt footer are enough.<\/p>\n\n\n\n
As you begin marketing, add a little structure: run a quarterly one-question net promoter score (NPS) or wider survey via QR\/email. Pull repeat rate and average order value from your point of sale, compare branded search trends to campaigns and test a small price increase \u2013 steady volume signals equity.<\/p>\n\n\n\n
When you\u2019re established, connect perception to dollars: estimate local share, monitor sustained price premium vs. peers, track lifetime value and churn and skim reviews for recurring descriptors.<\/p>\n\n\n
\n![\"Smiling](\"https:\/\/res.cloudinary.com\/vistaprint\/images\/w_1024,h_1024,c_fill,g_auto\/f_auto,q_auto\/v1763645580\/ideas-and-advice-prod\/blogadmin\/image-68\/image-68.jpeg?_i=AA\")
<\/figure>\n<\/div>\n\n\nHow to build brand equity<\/h2>\n\n\n\n
If you\u2019ve measured your brand equity and the results aren\u2019t what you hoped for, don\u2019t worry \u2013 there are specific branding strategies<\/a> you can use to strengthen brand awareness and perception. In a nutshell, improving brand equity involves evaluating where your brand stands, spotting areas that need work and taking action.<\/p>\n\n\n\n
Step 1: Make your brand easy to notice and remember<\/h3>\n\n\n\n
Building brand awareness is the first step to strengthening your brand equity. It\u2019s all about getting your name out there in a way that\u2019s consistent and memorable.<\/p>\n\n\n\n
Maintain brand consistency<\/h4>\n\n\n\n
Brand consistency builds familiarity. Use the same logos, color palette<\/a>, fonts and packaging physically and online: on all platforms, your storefront sign, banners, business cards, labels and menus. This ensures your audience recognizes your brand quickly and easily. This uniformity creates a cohesive brand identity that sticks in people\u2019s minds. As design trends evolve, make sure to adapt while staying true to your brand\u2019s core aesthetic.<\/p>\n\n\n\n
Leverage digital channels and content<\/h4>\n\n\n\n
Digital is king when it comes to spreading the word. Make the most of social media<\/a>, Google My Business and local SEO to ensure your brand has a solid online presence. Create engaging, shareable content \u2013 whether it\u2019s a behind-the-scenes video or a customer story, viral content can boost brand visibility in no time.<\/p>\n\n\n
\n![\"Social](\"https:\/\/res.cloudinary.com\/vistaprint\/images\/w_1600,h_574,c_scale\/f_auto,q_auto\/v1763645588\/ideas-and-advice-prod\/blogadmin\/image-69\/image-69.jpeg?_i=AA\")
<\/figure>\n<\/div>\n\n\nEngage with your audience<\/h4>\n\n\n\n
Engagement is about connecting directly with your customers. Positive interactions on social media, at events and during trade shows can make your brand more approachable. Respond to comments, share user-generated content and show your human side \u2013 these little actions can go a long way in building brand recognition and trust.<\/p>\n\n\n
\n![\"Customer](\"https:\/\/res.cloudinary.com\/vistaprint\/images\/w_1024,h_711,c_scale\/f_auto,q_auto\/v1763645595\/ideas-and-advice-prod\/blogadmin\/image-70\/image-70.jpeg?_i=AA\")
<\/figure>\n<\/div>\n\n\nUse brand visibility tactics<\/h4>\n\n\n\n
Think outside the box to get your brand noticed. Consider running print ads, partnering with local events, sponsoring community causes or using promotional products to spread the word.<\/p>\n\n\n
\n![\"Graphic](\"https:\/\/res.cloudinary.com\/vistaprint\/images\/w_1596,h_892,c_scale\/f_auto,q_auto\/v1763645700\/ideas-and-advice-prod\/blogadmin\/image-12-8_43390edf10\/image-12-8_43390edf10.png?_i=AA\")
<\/figure>\n<\/div>\n\n\n\n \n\n\n Tip <\/div>\n\nRead more in our Small Business Marketing Guide<\/a> to find actionable strategies for promoting your busines.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/section>\n\n\n\n
Step 2: Build strong brand associations<\/h3>\n\n\n\n
Building strong brand associations means that when people think of your brand, they think of the good stuff. It\u2019s about crafting a personality, telling your story and creating positive associations that stick in customers\u2019 minds.<\/p>\n\n\n\n
Create a strong brand personality<\/h4>\n\n\n\n
Start by defining your brand personality<\/a>. Think about how you want your brand to be seen \u2013 maybe friendly, professional, bold or quirky? Identify traits that resonate with your target audience and weave them consistently into your brand messaging and visual identity.<\/p>\n\n\n
\n![\"Bold](\"https:\/\/res.cloudinary.com\/vistaprint\/images\/w_1600,h_717,c_scale\/f_auto,q_auto\/v1763645690\/ideas-and-advice-prod\/blogadmin\/image-71\/image-71.jpeg?_i=AA\")
<\/figure>\n<\/div>\n\n\nSource: Brand identity for a canned cocktail brand by goopanic via 99designs by Vista<\/em><\/p>\n\n\n\n
Tell your story<\/h4>\n\n\n\n
Storytelling is a powerful way to create emotional connections and lasting associations. Share your story, your values, your mission and the journey that got you here. Stories humanize brands, making them relatable and easier for customers to connect with.<\/p>\n\n\n\n
Show you care about more than just profits by demonstrating your commitment to social responsibility, sustainability or ethical practices. Highlight your efforts in these areas \u2013 whether through sustainable packaging<\/a>, fair-trade sourcing or supporting local charities \u2013 to set your brand apart. Customers are more likely to develop positive associations if they see that your brand aligns with their values.<\/p>\n\n\n
\n![\"Establish](\"https:\/\/res.cloudinary.com\/vistaprint\/images\/w_1600,h_1334,c_scale\/f_auto,q_auto\/v1763645676\/ideas-and-advice-prod\/blogadmin\/image-72\/image-72.jpeg?_i=AA\")
<\/figure>\n<\/div>\n\n\nSource: Eco-friendly packaging design for reusable straws by bow wow wow via 99designs by Vista<\/em><\/p>\n\n\n\n
Form positive collaborations<\/h4>\n\n\n\n
Partner with like-minded businesses, celebrities or influencers that your target audience respects and admires. This creates a halo effect, where customers associate your brand with the positive values and qualities of your collaborators.<\/p>\n\n\n\n
Step 3: Enhance perceived quality<\/h3>\n\n\n\n
73% of consumers say product quality keeps them coming back, according to Vista\u2019s 2025 Small Business Marketing Guide<\/a>. And people judge quality before they ever try the product. <\/p>\n\n\n\n
Small tactile upgrades like heavier card stock, crisp printing, clean label application, legible typography and tidy packaging raise perceived quality immediately. Use a short checklist for every order or service (what must be spotless, on time and double-checked), and let customers see that care with a \u201cpacked by\u201d card. Invite feedback with a QR code to review, and respond quickly; public responses reinforce reliability.<\/p>\n\n\n\n
Step 4: Position your brand consistently<\/h3>\n\n\n\n
Positioning your brand consistently means staying true to your core values, keeping your product benefits clear and clarifying your place in the market. Assert your unique selling propositions (USPs) across all platforms, so that your audience knows exactly what sets you apart. Define your market position clearly, so customers understand what your brand is \u2013 and isn\u2019t \u2013 compared to the competition.
If this part still feels uneasy, it may be worth working through our guide to branding for small businessed<\/a>.<\/p>\n\n\n\nStep 5: Foster brand loyalty and build relationships<\/h3>\n\n\n\n
Recognition builds attachment. Greet regulars by name, remember preferences and make next time feel special. A simple stamped loyalty card<\/a>, early-access postcards for new drops or a quarterly VIP email can be enough to create brand loyalty. <\/p>\n\n\n\n
Keep it tangible and on-brand so it feels like a perk, not a coupon. Use your point of sale to notice repeat behavior and thank customers personally; a quick handwritten note tucked into an order can be the moment that turns satisfaction into advocacy.<\/p>\n\n\n
- LEGO:<\/strong> What began as a simple toy brand has become a cultural icon. LEGO\u2019s brand equity is anchored in creativity, nostalgia and quality. They\u2019ve expanded beyond plastic building blocks into movies, video games and theme parks, all while maintaining a reputation for reliability. That trust means parents and kids choose LEGO, even when similar products are available at lower prices.<\/li>\n\n\n\n
- Apple:<\/strong> Apple\u2019s brand equity is legendary. With Apple products, customers aren\u2019t just buying gadgets; they\u2019re buying into a lifestyle. The perceived quality and brand loyalty mean people line up for hours (or even days) just to get their hands on the latest release and don\u2019t think twice about paying premium prices to stay aligned with the brand.<\/li>\n\n\n\n
![\"Business](\"https:\/\/res.cloudinary.com\/vistaprint\/images\/w_1024,h_683,c_scale\/f_auto,q_auto\/v1763645668\/ideas-and-advice-prod\/blogadmin\/image-73\/image-73.jpeg?_i=AA\")
<\/figure>\n<\/div>\n\n\n![\"Loyal](\"https:\/\/res.cloudinary.com\/vistaprint\/images\/w_1600,h_898,c_scale\/f_auto,q_auto\/v1763645660\/ideas-and-advice-prod\/blogadmin\/image-74\/image-74.jpeg?_i=AA\")
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