Products are made in the factory, but brands are created in the mind
Walter Landor
The physical value of your products may be easy to calculate, but your consumers’ perceptions are what really determine the value your brand and products have in the marketplace. Because of this, your ability to build value into your brand and communicate that value to customers through your marketing is essential to the long term success of your business.
Brand equity is the perception customers have of your products and services based on what they think of your brand. Apple, Google and Microsoft are all considered to have high brand equity.
It’s difficult to assign a monetary value to a brand, but no matter how intangible brand equity may seem, a strong brand reaps considerable business benefits from:
- Awareness
- Credibility
- Reputation
- Customer satisfaction
These benefits serve as tools to marketers to help them attract the ‘mindful consumer‘ who wants to buy from a brand high in value.
The Mindful Consumer
In his talk, John Gerzema asserts that buyers are no longer in retreat (as they were during the economic crisis), but have become what he refers to as mindful consumers.
The mindful consumer is willing to buy, but craves value. In the search for value, they consider factors like social proof, identity reflection and attributing it to their ‘personal brand’. Let’s look at three ways to drive value:
Give your brand meaning. Strive to build your brand as a status symbol & make it symbolic. I’m a big fan of Rory Sutherland and he once told a story of a king who, to prevent famine, decreed the potato a royal crop and put guards around the fields to make the previously rejected vegetable desirable. The king changed the perception of the crop’s worth, not the crop itself. He advises that ‘anything worth guarding must be worth stealing.’ You may not be able to decree your products or brand a ‘royal crop,’ but you can strive to create the same kind of perception of your product.
Connect to emotions. Emotional preference is important: while services may be similar, that emotional connection can create the perception that the “connected” brand exceeds customer expectations.’ It means presenting a product, no matter its function, in an empathetic way.
Build loyalty. Tailored content is the start of a long term relationship. If you continually produce content that interests leads and customers, you can keep them coming back to your brand and build loyalty. Learn what channels your customers are on and the type of content they want to see and then put consistent, tailored content on those channels.
In a connected world where perception determines your brand’s value, having customers on your side gets you the recommendations, reviews and social proof you need.