What’s the future of your brand? When your company offers consumers a product or service that’s similar to your competitors, you need to stand out from the crowd. Business researchers and experts believe that there’s more to a company’s success—or failure—than product pricing or convenience. What determines whether or not a company makes it big (and remains popular) is its brand equity—the extent of the brand’s power as determined consumers’ positive or negative knowledge, perceptions, and experiences with the brand.
SurveyMonkey has partnered with BAV Consulting to help you assess your brand equity. Read on to learn more about the BAV model, and how you can better understand your company’s power and potential. We’ve even created a customizable Brand Equity Survey Template that you can use to get started.
Determine your brand power with our Brand Equity Survey Template.
Understanding the BAV model
What makes your brand successful? According to the BrandAsset Valuator model that BAV takes its name from, your company’s brand health and future can be determined by collecting consumer insights in four key areas:
- Differentiation. How much your brand stands out from the rest. Has your brand attracted consumers’ attention more than your competitors? Measure this by asking questions about how often consumers have come across your brand, if they recognize your brand, and how different it is from your competitors.
- Relevance. How appropriate your brand is for consumers. Would consumers want to purchase your product or service? Is your product relevant to consumers in regards to price, convenience, and fulfilling their needs? You can determine your brand’s relevance by asking consumers how likely they would be to purchase your product or service, regardless of whether or not they have purchased your product or service in the past.
- Esteem. How well regarded your brand is. Ask consumers to assess your company’s reputation and brand personality. How different, innovative, dynamic, reliable, helpful, and highly regarded is your brand?
- Knowledge. How well consumers know your brand. What are your target consumers’ assumptions about your brand, and are they positive or negative? Ask consumers to tell you what they know—or what they think they know—about your company and its products or services.
Analyzing your brand equity survey results
According to the BAV model, it’s important to measure how differentiation, relevance, esteem, and knowledge relate to one another so you can determine your brand strength and stature. Here are the most important dynamics to note:
- Differentiation is higher than relevance. When your brand is different, consumers are curious as to why and want to learn more. This can attract customers, get them to explore the brand, and find out if it is relevant to them.
- Relevance is higher than differentiation. When your brand is more relevant to consumers than it is differentiated from other brands, your brand is no longer interesting or pulling in consumers. You are now competing on relevance alone, which means that consumers will only purchase your product or service based on price or convenience.
- Esteem is higher than knowledge. When consumers hold your brand in high esteem, they respect and desire your brand because it is so well regarded. Consumers want to purchase your product or service to find out why it garners consumer loyalty.
- Knowledge is higher than esteem. When consumers claim to already know all about your company, this can lead to problems, especially if they believe they know negative things about your brand. Consumers who think they don’t need to learn anything else about your brand have already judged it—and this means they may be looking to learn more about your competition and less about you.
Determining your brand equity
Once you see how high or low your brand is rated in differentiation, relevance, esteem, and knowledge, you can use these measurements and relationships to assess your brand strength and brand stature. That way, you can determine your overall brand asset (what BAV calls the overall measure of your brand’s equity).
Brand strength indicates your future brand value. Composed of differentiation and relevance, brand strength reveals your company’s momentum and ability to drive profits. How unique is your brand—and is it attracting consumers’ attention? When your brand stands out from the crowd, consumers are more likely to choose you over your closest competitors in product, service, price, and convenience—which leads to increased brand strength.
Brand stature is how consumers regard your brand. Composed of esteem and knowledge, brand stature is correlated with your company’s profitability. The more consumers respect your brand, the more likely they are to purchase your product or service, regardless of price.
Basically, brand equity comes down to this: When your brand strength and brand stature are high—or brand strength is higher than brand stature—your brand equity is at its peak (which means you’ve got a powerful brand).
Mapping out your brand asset—seeing where you stand
If you want to get a better understanding of your brand asset (equity), take a look at the graph below. You can see where other companies score in terms of brand strength and brand stature and how that affects their overall brand power.
- Companies in the upper right quadrant (Google, Facebook, etc.) have high levels of brand strength and brand stature—their brand equity is strong, which means these brands tend to have high earnings and the greatest potential to create future value.
- Companies in the lower right quadrant (Epson, Sprint, etc.) do not rely on their brand name for growth. Consumers feel that they already know enough about these companies and see them as one of many viable alternatives. These brands tend to compete on the basis of price or convenience and have little customer loyalty and interest.
- Companies at the lower left quadrant (Kyocera, Ericsson, etc.) have low scores in all four key areas (differentiation, relevance, esteem, and knowledge). For now, these brands have low earnings and low potential and are trying to break into the market.
- Companies in the upper left quadrant (Hulu, Tumblr, etc.) have low earnings but high potential. They have built differentiation and relevance, but only a small audience knows or considers them.
Learn more about brand equity and building brand awareness
Want help understanding the value of your brand? Contact BAV Consulting to learn about an in-depth consultation. You can also learn more measuring and building brand awareness with SurveyMonkey with our Brand Identity and Branding resource page, which includes expert-certified branding survey templates and articles for measuring brand loyalty, brand awareness, and more.