BizSugar.com › Marketing › Five Steps to Building Brand Equity for the Small Business

Instinctively, every small business owner understands the importance of brand equity, even if they may not be able to define the idea. Marketing-speak aside, brand equity is how your customer recognizes why you are different and better than the alternative.

Brand equity is built on that customer's direct experience with your product or service. This experience, repeated over time, creates equity or value in your brand. And it serves as a shorthand in the buyer's mind that separates you from everyone else.

Brand equity is what creates loyalty that carries beyond price or the occasional product or service bump in the road. It is the quality that motivates your customers to recommend their friends or colleagues to you.