What is brand equity and why is it important?

Brand equity represents the intangible assets that a brand possesses. Assets that can have a significant impact on a company — from attracting prospects to building advocates for the brand. You can define it as the perceived value or worth of a brand in the eyes of those you hope to serve. Put another way, it is a reflection of how people feel and think about your brand.

Brand equity is built over time through intentional branding strategies, consistent efforts, and positive brand experiences.

The importance of brand equity

Brand equity is about forging emotional connections with people that translate into long-term relationships, higher customer lifetime value, and a sustainable competitive edge. It’s the bedrock upon which successful businesses build their reputation, resilience, and enduring legacy.

Here are some of the specifics on the value of brand equity:

• It can build trust and confidence — One of the fundamental aspects of brand equity is trust. Trust is built over time through things like consistent quality, positive experiences, and ethical business practices. Brands with high trust levels are perceived as reliable. In the chaotic world we live in, having something that you know is reliable and gives you confidence can be very…