What Is The Difference Between Brand Equity And Customer Equity?
Brand equity is generally speaking, the monetary value of a brand, its total worth. Customer quity is the lifetime value of a customer.
WHAT BRAND EQUITY AND CUSTOMER EQUITY HAVE IN COMMON?
In both the cases there is high emphasis on customer loyalty to the brand.
Both stress that there is value in “having as many customers as possible paying as high as possible”.
WHAT THEY DON’T HAVE IN COMMON?
Brand equity focuses more on the strategic value of a brand, while customer equity focuses more on the bottom line financial value gained from customers.
Customer equity can have a “spillover” effect for more than one brand. A loyal customer may regularly buy more than one brand from a company. But brand equity is the value derived from only that brand. Its focus is narrow.
Both brand and customer equity can exist without each other. Scenario 1: I may like two particular brands of shampoo, but buy only one regularly. The other brand will have brand equity without customer equity. Scenario 2: I may buy regularly cheap/fake commoditized products from a company. Here the company will have customer equity without any brand equity.
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