Brand Equity vs Customer Equity?
Brand equity is what decides the brand’s worth. We can define it as a bundle of value and strength. In contrast, customer equity relates to the lifetime values that are important to consumers.
Nevertheless, these two terms have something in common:
- Both brand equity and customer equity place the focus on customer loyalty and its significance.
- Both of them show that having many customers who would pay the highest possible price is what determines a brand’s value.
Yet, they are also different in terms of concept
Brand equity focuses on the strategic issues that may occur while managing a brand. Meanwhile, customer equity’s main concern is the financial value that the brand gets from the customers.
Customer equity is a much broader alternative, as it can often ignore a brand’s optional value. Moreover, it affects revenue and costs, and not just within the marketing environment.
But these two terms are not interdependent. One can exist without the other. One customer may love both Burger King and McDonald’s, but prefer to eat only at Burger King.
Thus, it’s evident that brands are nothing without their consumers and vice versa. Furthermore, brands have to use other means and go-betweens to attract their customers so as to extract value from them. Meanwhile, customers are a way for brands to cash in on their value. As such, these two terms are closely connected.
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