Brand Equity

Brand Equity

December 8, 2023 by investor

Brand Equity

Brand equity is the value that comes from customer recognition of the brand.

Startups with brand equity command a higher price for the product and differentiate from the competition.

Here are the key elements of brand equity:

Brand recognition

Customers recognize the visual identity of the brand and value it.

This differentiates your startup from the competition and reduces the cost of acquiring new business.

Brand perception

Customers understand what your startup does based on the brand.

Customers are aware of your promise, values, and mission.

Brand image

The brand generates an emotion when customers see the image.

It is the emotional component of the brand that connects with the customer.

Brand value

The brand stands for quality and helps the customer justify the cost of the product.

It is the logical component of the brand.

Brand equity impacts a startup’s financial performance including revenue, cost of sales, and profitability.

Other benefits include lowering the cost of launching a new product, upselling and cross-selling, and lowering churn.


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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.