Retail Marketing

Customer brand equity - understanding Keller’s brand equity model

October 2019 Written by Papirfly

In the world of business, knowledge is power. The more you know about performance, key demographics, buying practices and how each shift throughout the course of a year, the better off your company is. Customer brand equity, in a nutshell, covers a customer's overall attitude to your brand and its ability to influence success. Due to this, understanding how to measure customer brand equity in retail provides valuable insights into business performance and how it may set itself up in the long run.

The Keller Triangle Model

There are a handful of different methods for uncovering the strength of your customer brand equity is Lane Keller's Triangle Model, which he first covered in the book Strategic Brand Management. The triangle (or pyramid) is made up of a four-level construction. Each of the two middle levels contain two important factors.

kellers-triangle-brand-equity

From "Strategic Brand Management: Building, Measuring, and Managing Brand Equity"
by Kevin Lane Keller. © Pearson Education Limited 2013.

Level one

The first level is known as salience. Essentially, this asks the question "what does the customer think of the business?" What is the average consumer's point of view of your company? In their own words, how would they describe what you do and what you sell? What do they think of when they hear your brand name or your products? This single layer identifies the knowledge the customer base has of your business and their overall awareness. The size and strength of this first layer carries the weight of the rest of the triangle.

Level two

The second level is made up of two different factors, both of which revolve around how you can improve and think of your own brand recognition. Naturally, you want to improve the size and strength of the first level, which is where these two factors come in. One of the factors is performance. This covers customer service and how satisfied a customer is with your product. It also covers reliability, durability and whether or not the price impacts the willingness of a consumer to purchase your product.

The second factor in level two is imagery. Imagery is not the visual connotation of your product, but instead how a customer sees it psychologically and socially. Is it cool to have your product? Does it offer a status symbol? If so, is the consumer going to tell others about it? All of this goes into the personal imagery of your brand.

Level three

Building on level two is another two-factor level. This looks at the judgement and feelings of your customers. With the judgement factor, it considers both the perceived and actual judgement of a customer. In other words, has a customer tried a product and developed a specific idea towards it, or is their judgement based more on perception? It also looks at a customer's overall trust for your brand and products.

The second factor in the third level is feelings. This covers what the customer feels about your company and how it compares with similar product and service providers. Basically, this level is all about the emotional and personal opinions of a customer. Whether based on a real interaction with your company or through reputation alone, a strong level three is required in order to build a strong final level.

Level four

The fourth and final level is another single-factor level. This is resonance, or how loyal is a customer to your brand. As you build a solid foundation and grow the first three levels, you'll see your customer retention grow as well.

To build your customer brand equity, you need to focus on these four individual steps. From there, you'll boost customer loyalty and see the company's bottom line expand.

by Papirfly

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