Brand equity refers to the value premium a company generates from a product with a recognizable name compared to a generic equivalent. It is built on consumer perception, which includes knowledge and experience with a brand and its products, and can result in either positive or negative effects. Positive brand equity benefits an organization's products and financials, while negative brand equity has the opposite effect.
Brand equity holds significant importance as it leads to increased customer loyalty, higher perceived value, and a competitive advantage in the market. It directly impacts sales volume and a company's profitability. By understanding brand equity, businesses can develop effective marketing strategies, create strong brand associations, and improve customer retention. Additionally, investors can evaluate the strength and performance of a company in public markets.
Positive brand equity generates loyal customers who promote the brand and are more likely to buy multiple products or services from the company. Conversely, negative brand equity can make it difficult for a company to recover and attract new customers.
Building strong brand equity involves creating memorable products, maintaining consistency in branding, and ensuring positive customer experiences.
Measuring brand equity involves evaluating three basic components: consumer perception, positive or negative effects, and the resulting value. Consumer perception, which encompasses knowledge and experience with a brand, directly impacts brand equity. Positive brand equity can lead to increased customer loyalty, higher perceived value, and a competitive advantage in the market, while negative brand equity has the opposite effect.
Challenges in measuring brand equity include quantifying abstract concepts like brand awareness and brand experience, determining the impact of branding investments on sales and conversions, and blending different types of models for measurement. Successful brand equity measurement examples include Apple and Coca-Cola, both known for their strong brand equity and loyal customer base.
Real-world applications of brand equity can be observed in various successful companies.
A marketing play is a repeatable tactic used to achieve a specific marketing goal, like generating leads or driving engagement.
AI marketing uses artificial intelligence to analyze data, automate decisions, and deliver personalized customer experiences at scale.
Data-driven marketing uses customer data to inform marketing decisions, optimize campaigns, and deliver personalized experiences to consumers.
A sales playbook is a guide that outlines your sales process, best practices, and tools to help reps sell more efficiently and consistently.
Subscription models are a business strategy where customers pay a recurring fee at regular intervals for access to a product or service.
Smarketing is the process of aligning your sales and marketing teams. This integration focuses on shared goals to improve lead quality and drive revenue.
Lead management is the process of capturing, nurturing, and qualifying leads to guide them from initial interest to sales-ready.
Email deliverability is the ability for your emails to successfully land in your recipients' inboxes instead of their spam folders.
An Application Programming Interface (API) is a set of rules that lets different software applications talk to each other and share information.
Quality Assurance (QA) is the systematic process of ensuring a product or service meets specified quality standards from development to delivery.
Customer Retention Cost (CRC) is the total amount a company spends to keep an existing customer over a certain period of time.
Regression testing ensures that new code changes don’t negatively impact existing features. It's a key step to maintain software quality after updates.
Cross-selling is a sales tactic of encouraging customers to purchase products or services that are related to what they're already buying.
Predictive lead scoring uses AI to analyze data and rank leads by their likelihood to convert, helping sales teams prioritize their efforts.
A Sales Manager leads a sales team, setting goals, analyzing performance, and developing strategies to drive revenue and meet targets.
Lead enrichment tools are platforms that automatically add missing data to your leads, like contact info, firmographics, and buying signals.
Learn about B2C2B, including how B2C2B transforms sales, key strategies for B2C2B success, & differences between B2C2B and B2B2C.
A draw on commission is an advance payment a salesperson receives against future earnings, which is later repaid from earned commissions.
A System of Record (SoR) is the authoritative data source for a specific type of data. It acts as the single source of truth for an organization.
Email verification is the process of confirming that an email address is valid and deliverable, which helps improve campaign performance.
Net 30 is a common payment term where a client has 30 calendar days from the invoice date to pay for goods or services in full.
Revenue Operations (RevOps) is a business function that aligns a company's sales, marketing, and customer service teams to drive predictable revenue.
Learn about behavioral analytics, including implementing behavioral analytics successfully, & key metrics in behavioral analytics.
A sales process is a structured set of steps that a sales team follows to move a prospect from an initial lead to a closed customer.
Sales objections are reasons or concerns raised by a potential customer as to why they are hesitant or unwilling to make a purchase.
Learn about BANT framework, including implementing BANT in sales strategy, advantages of the BANT methodology, & BANT vs. other qualification models.
An AI sales script generator is a tool that uses artificial intelligence to create personalized sales scripts for any outreach scenario.
Price optimization is the process of finding the ideal price for a product or service to maximize profitability or other business objectives.
A Call for Proposal (CFP) is a document that solicits proposals, often through a bidding process, for a specific project or service.
Account-based advertising is a hyper-focused B2B strategy that targets key accounts with personalized ads across multiple channels.
Sales forecast accuracy is a key metric that compares your predicted sales revenue against the actual sales revenue you ultimately achieve.
Learn about B2B data platform, including key benefits of B2B data platforms, choosing the right B2B data platform, challenges in implementing B2B data platforms.
Kanban is a visual project management method that uses a board to visualize workflow, limit work-in-progress, and maximize team efficiency.
Employee engagement is the emotional commitment an employee has to their organization, motivating them to contribute to the company's success.
The buying cycle is the journey a customer takes from first realizing they have a need to making the final purchase decision.
A hybrid sales model blends traditional and digital sales methods to engage customers across multiple channels and buying preferences.
Google Analytics is a web analytics service that tracks and reports website traffic, offering insights into user behavior and marketing effectiveness.
A sales sequence is a series of automated touchpoints sent to prospects over time to guide them through the sales funnel.
Territory management is the process of segmenting customers into groups by geography or other factors to optimize sales efforts and resources.
Data cleansing, or data scrubbing, is the process of detecting and correcting inaccurate records from a dataset to improve data quality.
A dialer is software that automatically dials phone numbers for agents, boosting call efficiency and connecting them to live prospects faster.
Expansion revenue is the extra money a business makes from its current customers via upgrades, new products, or additional services.
A value statement is a clear, concise declaration of the unique benefits a company provides to its customers, outlining its core purpose.
Sales Engineers blend deep technical knowledge with sales acumen, demonstrating a product's value and solving customer problems to drive revenue.
A sales kickoff (SKO) is an annual event for a sales team to celebrate wins, align on goals, and get motivated for the upcoming year.
Segmentation analysis is the process of dividing a broad market into smaller, distinct groups of consumers with similar needs or characteristics.
Sales conversion rate is the percentage of prospects who take a desired action, like making a purchase, turning them into customers.
Sales enablement provides sales teams with the necessary tools, content, and information to help them sell more effectively and efficiently.
A Letter of Intent (LOI) is a document declaring the preliminary commitment of one party to do business with another, outlining the chief terms.
After-sales service is the support provided to customers after they've purchased a product. It includes things like warranties, training, or repairs.
Latency is the delay between a user's action and a system's response. It's the time it takes for a data packet to travel to its destination.
Deal flow refers to the stream of business proposals and investment opportunities that a company or investor receives.
Lead enrichment software adds crucial data to your leads, like contact info and firmographics, to help you better understand and engage them.
Tokenization is the process of breaking down text into smaller units called tokens, such as words or characters, for AI to process.
Lightning Components is a UI framework for building dynamic web apps for mobile and desktop devices on the Salesforce Lightning Platform.
Sales prospecting software automates the process of finding, contacting, and tracking potential customers to help sales teams build their pipeline.
The Challenger Sales model is a methodology where reps teach prospects, tailor their pitch, and take control of the sales conversation.
Outside sales reps sell products/services in person, traveling to meet clients and close deals face-to-face, outside of a traditional office.
Product-Led Growth (PLG) is a business strategy where the product itself drives user acquisition, conversion, and expansion.
Outbound lead generation means proactively reaching out to potential customers who haven't yet expressed interest to introduce them to your brand.
Touches are the individual interactions you have with a prospect throughout the sales process, from emails and calls to social media messages.
Text message marketing is a strategy where businesses send promotional messages, offers, and updates to customers via SMS or MMS.
Cross-Site Scripting (XSS) is a web security vulnerability that allows attackers to inject malicious scripts into trusted websites.
Account management is the post-sales practice of building and nurturing long-term relationships with a company's most valuable clients.
Dynamic pricing is a strategy where businesses set flexible prices for products or services based on current market demands and other factors.
Logo retention is a key B2B metric that measures a company's ability to retain its customers, or 'logos,' over a specific period.
Learn about bounce rate, including understanding bounce rate implications, key factors affecting bounce rate, & reducing your bounce rate effectively.
An Applicant Tracking System (ATS) is a software application that manages your entire hiring and recruitment process from a single dashboard.
Learn about big data, including understanding big data characteristics, benefits of leveraging big data, & challenges in managing big data.
A headless CMS is a back-end content repository that delivers content via API to any front-end, decoupling the content from its presentation layer.
ClickFunnels is a popular online tool that lets entrepreneurs easily build sales funnels to guide potential customers through the buying process.
Ad-hoc reporting is the creation of one-off reports to answer specific business questions as they arise, providing instant, targeted insights.
Contact discovery is the process of finding accurate contact details for potential leads, including names, emails, phone numbers, and job titles.
Compounded Annual Growth Rate (CAGR) measures the mean annual growth of an investment over a specified period of time longer than one year.
Account-Based Sales Development (ABSD) is a focused strategy where SDRs target key stakeholders within specific, high-value accounts.
Learn about ballpark, including estimating with ballpark figures, understanding ballpark estimates in sales, & ballpark estimates vs. precise quotes.
Omnichannel marketing creates a seamless, unified customer experience by integrating a company's various communication and sales channels.
Fulfillment logistics is the entire process of getting an order to a customer, from storing inventory to picking, packing, and final shipment.
The consideration buying stage is where potential customers have defined their problem and are now actively researching and evaluating solutions.
A sales cycle is the series of steps a company takes to close a new customer. It starts with prospecting and ends with a signed deal.
The marketing funnel is a model illustrating the path potential customers take, from initial awareness to making a purchase.
End of Day (EOD) refers to the close of business hours. It's a common deadline for tasks and reports to be completed before the workday ends.
High availability (HA) describes a system's capacity to function continuously with minimal downtime, ensuring consistent operational performance.
Sales engagement is the sum of all interactions between a seller and a prospect, aimed at building a relationship and moving a deal forward.
Learn about brand loyalty, including how to build brand loyalty, benefits of brand loyalty, measuring brand loyalty, & strategies for increasing loyalty.
Learn about buyer intent, including understanding buyer intent signals, strategies to capture buyer intent, & buyer intent vs. customer interest.
A value chain is the series of business activities required to create and deliver a product or service, from conception to the final customer.
An objection is an explicit expression by a prospect that presents a barrier to moving forward in the sales process.
LinkedIn Sales Navigator is a premium tool helping sales teams find and engage with the right leads and accounts on the LinkedIn network.
A performance plan is a formal document outlining an employee's goals, expectations, and metrics for success over a specific period.
Lead Velocity Rate (LVR) is the growth rate of your qualified leads, measured month-over-month. It's a key indicator of future revenue.
Learn about buyer intent data, including sourcing and interpreting buyer intent data, & key metrics in buyer intent analysis.
Lead generation software helps businesses automate finding and capturing potential customers' contact information to build sales pipelines.
Technographics is data that outlines a company’s technology stack, helping B2B teams identify prospects based on the software and hardware they use.
Forecasting uses historical data to make informed predictions about future trends, helping businesses anticipate outcomes and plan accordingly.
Average Revenue per Account (ARPA) is the average revenue generated from each customer account, usually measured on a monthly or annual basis.
Pay-per-click (PPC) is an ad model where you pay a fee each time your ad is clicked. It's a method of buying targeted visits to your website.
A canary release is a deployment strategy where new software is rolled out to a small user group first, minimizing risk before a full release.
A cloud-based CRM is a customer relationship management tool hosted online, letting teams access and manage customer data from anywhere.
An account is a company or organization that you're targeting for sales. It can be a prospective, current, or even a past customer.