Now, more than ever before, consumers are shopping online and doing business directly with brands they trust. In fact, it’s estimated that more than 81% of all consumers will make a DTC purchase within the next four years.

What does that mean for you and your DTC business? Simply put, you need to invest in building brand equity.

If you’re ready to take your DTC to the next level, but aren’t sure how to get started, you’ve come to the right place.

Read on to learn more about DTC brand equity and how to make it work for you.

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What Exactly is Brand Equity?

Brand equity is the value that your brand name adds to your product or service. It’s made up of four distinct elements:awareness, recognition, attributes and brand loyalty and probably most importantly, perceived value.

Brand equity is also directly linked to brand recognition. While the customer must have initial brand awareness, equity is all about the added emphasis on the value your brand name provides to your product or service.

Still not sure what DTC brand equity is?

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Let’s look at an example.

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Drug stores carry a variety of different types of face creams you can buy. Some are well-known brand names while others are owned by the drug store itself. Each face cream contains the exact same ingredients and offers the same outcome when used consistently.

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Even though all of the creams offer great results, the name brand is held in higher regard. It’s trusted more than the drug-store brand.

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In a nutshell, it has higher levels of brand equity. The same holds true when it comes to the DTC model. Consumers may shop around and research what different brands have to offer and see that the products or services are comparable. However, they’ll be more likely to do business with a brand that has a strong standing, or higher levels of brand equity.

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Elements of DTC Brand Equity

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As consumers become increasingly aware of your brand, DTC brand equity also increases. However, they must first know who you are and what you have to offer.

They also need to form positive opinions with your brand through engagement and interactions. It’s at that time they start to perceive the value your brand provides.

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Brand Perception

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Did you know that it takes seven seconds or less for consumers to form an impression of your brand? What consumers feel your product or service represents is brand perception. It’s not what a brand says it does or what it says their products can accomplish.

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And while companies can spend thousands of dollars trying to create the perfect brand with eye-catching campaigns, logos, the perception of your brand is something consumers create on their own.

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This process for DTC brands can be broken down into the following stages:

• Recognition - Your brand has distinguishable features that are easy to recognize. It could be your logo, brand colors or a specific influencer you work with. The more visible your brand is, the more impact it has on a consumer’s perception. In turn, your brand has higher levels of brand equity.
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• Awareness - When consumers are aware of what your brand stands for (your unique selling point), it creates a feeling of trust and transparency.
  Once consumers start reacting positively with your brand, they usually make a buying decision and if satisfied, then recommend you to others. This then leads to increased brand awareness and value.

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Benefits of Building DTC Brand Equity

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If you’re trying to standout in a saturated market, creating DTC brand equity gives you a much-needed competitive edge. You appeal to more consumers and have a higher chance of them doing business with you.

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In addition, you can also start charging premium prices for your product or service.  The more brand equity you have, the more people trust you and what your brand has to offer. They instinctively become advocates for your brand, which allows you to sell more.

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Now that you understand what brand equity is and how it can benefit your business, it’s time to learn how to make the magic happen.

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How to Build DTC Brand Equity

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We know that brand equity is the value of your brand. We also know that it’s based on how your target market perceives you and whether they find your business valuable. So, when it comes to building equity, you can’t just wing it. You need a solid strategy that will help create a strong bond with your ideal customer.

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Here are four strategies to build DTC brand equity:

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1. Boost Brand Awareness

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It’s important that your target audience easily recognizes your brand when searching for products or services. It’s equally important that they perceive your brand in the way that makes them want to do business with you instead of going somewhere else.

There a lot of ways you can go about this, however, some of the most successful methods include:

●     Being consistent in your branding including images, packaging and logo

●     Telling the story behind your brand

●     Providing unforgettable customer service

●     Going the extra mile to provide value

●     Staying in touch via email sequences

●     Using social media to engage with your target audience

●     Aim for positive customer experiences with all interactions

●      Use targeted marketing to reach the right people and build brand awareness

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2. Communicate Your Brand Meaning

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Think about your product or service. How well does it meet the needs of your customers? We’re not only talking about their physical needs–we’re talking about psychological and social needs as well. A business that is genuinely interested in getting to know its customers and shares the same values will convert more leads into repeat customers.

3. Foster Positive Customer Feelings And Judgments

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When people develop a good feeling about your brand, they’re also more likely to become return customers.They’re also more likely to share their positive interactions and want others to experience the same.

Since both positive and negative judgements are based upon your capability, credibility and relevance, it’s important to maintain the same level of integrity across the board.

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4. Build Trust and Loyalty With Your Customers

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Loyalty goes a long way when building equity, especially for DTC businesses. Once your customers trust you they develop an emotional bond with your brand. They will make more than one purchase because they trust you.

They’ll also feel like they belong to a community and will want others to feel the same.

Simply put, positivity builds positivity. Make a point to be transparent with your target audience, and engage with them regularly on social media.

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What’s the Next Step in Your DTC Brand Equity Journey?

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As the DTC industry continues to grow, so does the need to build meaningful relationships with your customers. If you look for ways to provide value, even in the earliest part of the buyer’s journey, all you have left to do is sit back and watch your brand equity grow.

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