As the CEO of a product company, I knew that our product’s image was vital.  But even then (this was 30 years ago), I knew that the customer (those that paid and those that used- in our case they were two separate populations) interactions were also crucial components for our success.

It’s what drove our slogan.  Which was also a hidden component of our mission.  You see, we made medical grade saline concentrates for dialysis patients.  (We invented liquid bicarbonate concentrate.)  But, we announced to the world:

Yes, it was a play on words.  But, it also described what we did.  We set up delivery systems for our customers (for a fee, of course).  We provided just-in-time delivery.  We trained them in the use of our product- as well as general sanitation and disinfection techniques.

Our service company has a brand, too.  We work with clients- intimately.   And, we help make the world better, one client at a time.  Whether it’s a legal entity, a construction firm, a service provider, a B2C click-and-mortar company, or to B2B firm, we stress that the most valuable asset the entity has is its brand.

It’s critical to monitor this generally misunderstood concept.  It means you analyze all the little interactions your company has with your stakeholders.  What your stakeholders say about you.  What makes you different from everyone else out there.  What you do that no one else does.

The brand is what the world thinks- and feels- about you.  It can be from first-hand experience or what they heard.   Either way, it’s your lifeblood of success.  We want our brand equity to be positive.  Because its value adds to your product or service in ways that generally can’t be calculated.  (It used to be what folks called “goodwill” when they bought or sold existing companies.)

When you have nurtured your image and assured that you have positive brand equity, you garner significant benefits- like increased margins.  You get to charge more for your product or services, because folks “know” you are worth it.  It’s that “knowing” that’s critical to your success.

Brand equity also assures customer loyalty.  They will think about buying from you again and again- because that experience was worth it to them.  When and if (Hashem forbid) that something goes wrong- once- your stakeholders will probably cut you some slack, giving you the opportunity to make the situation right and save (and maybe even enhance) your reputation.

Here’s a value of brand equity that is rarely considered- negotiating power.  We can make better deals with vendors and distributors when we have that great brand equity.  Bicarbolyte (our medical device company) was relatively small among medical firms (and much smaller than the fully integrated Fresenius/National Medicare Care dialysis powerhouse of the time), but our reputation was strong.  The largest provider of sodium bicarbonate (a crucial component in our product)  in the world came to visit and court us often, even cosponsoring a conference about dialysis with our firm.

Our brand equity is why our competitors were always trying to knock down our reputation.  To garner our sales and our customer loyalty.  Because that was a critical path to their “getting the business”.  It’s why we kept working on our reputation, our product quality, and our service delivery every single day.

Because it’s a life-long pursuit.   Resting on one’s laurels is not the path to success.

I’ll have more on this subject tomorrow.  (You can also check the index for “brand” to see other items to help you get your brand equity working for you.)

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