Brand Equity: What It Means and How to Measure It

Companies often ask, “How well-known are we?”

They look to perception surveys, brand trackers, and expensive market research. Yes, you can run these studies. They’ll cost around $200K and likely tell you what you already suspect.

The problem is the Hawthorne effect. Ask someone if they’ve heard of your company, and many will say yes, even if they haven’t. People don’t want to feel out of the loop, so the data is often skewed.

We’ve run these. We’ve paid for them. At the end of the day, the real measure is simple: how often do people choose you over the competition?

Seth Godin says brand equity is measured by behavior. When someone has a choice and picks you, that’s your brand doing its job.

It’s why someone spends $2,000 a night at 1 Hotel in South Beach instead of $200 at the Marriott down the street. They’re not just paying for a bed. They’re buying into the mission, the values, the experience. That’s brand equity in action. It’s emotional. It’s instinctive. It’s earned.

What is Brand Equity?

Brand equity is the value built into your name. It’s the trust, recognition, and loyalty that make people choose you—even when there are cheaper, faster, or more convenient options available.

It gives you pricing power. It builds loyalty. It shortens sales cycles. And it gives you a competitive advantage that no one can copy overnight.

How to Build It
• Consistency: Repetition creates familiarity. Familiarity builds trust.
• Visibility: Your audience should be able to find you quickly.
• Credibility: Clear design, strong messaging, and a professional presence matter.
• Content: Share ideas that reflect your expertise and stay top of mind.
• First Impressions: If someone can’t tell what you do within seconds, you lose them.

Just like the 1 Hotel’s brand experience is clear across its lobby, its rooms, its scent, and even its playlist—your brand should be consistent across every touchpoint: your site, your emails, your slide decks, your team.

How to Know If It’s Working
• Are people searching your company name on Google?
• Are reps hearing “I’ve heard of you” instead of “Who are you?”
• Are you getting more inbound interest than before?
• Are clients choosing you over more established names?
• Are you able to charge more—and still win?

When brand equity is working, it’s quiet but powerful. People trust you without knowing exactly why. They refer you. They come back. And they’re willing to pay a premium.

Want a Quick Brand Signal Check?

We’ll help you see:
• How often your company name is searched each month
• How visible you are online compared to competitors
• Where your brand may be gaining—or losing—traction

Request your Brand Signal Check and get a clear, behavior-based view of how your brand is performing.