Brand equity

Main Hero

Definition

The extra commercial value created by awareness, associations, quality, and loyalty.

Advanced

Seen in preference, pricing power, and repeat rate versus similar offers. Strong equity lowers acquisition cost and improves conversion at similar media spend.

Why it matters

Supports premium pricing and improves unit economics.

Use cases

  • Pricing decisions
  • Budget allocation
  • Investor materials

Metrics

  • Price premium
  • Repeat purchase rate
  • Share of search

Issues

  • Relying on vanity metrics
  • Not tracking preference or repeat rate

Example

Higher demo to close rates at the same CPC as a lesser-known competitor.