Monday, May 16, 2011

Why Brand Equity Isn’t The Same As Customer Loyalty

Most people will argue that advertising is effective in creating equity in a brand.

In this, you’ll get no argument from me.

Where I tend to diverge from the group is in the conclusion that creating equity in the brand is the same as creating loyalty in the customer.

The agency argument, of course, is that if you put enough money behind the advertising, equity will somehow turn into loyalty.

And if kissed by a beautiful maiden, a frog will turn into a prince. (Okay, I do believe that one.)

The problem is this: Equity is something that you build into a brand. Loyalty is something that you create in a customer.

Fat can’t turn into muscle. Which is why you don’t get stronger by indulging in bonbons.

No matter how many you eat.

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