Tuesday, September 04, 2012

Is Brand Equity and Customer Loyalty The Same Thing?

As it presently works, advertising agencies claim to be very good at creating equity in a brand.  

And, in this, you’ll get no argument from me.

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

The agency argument, of course, is that if you put enough money behind the advertising, equity somehow turns into loyalty.  (And if kissed by a beautiful maiden, a frog will turn into a prince.  Okay, so we do believe that one.)

The problem is this:  Equity is something you build into brand.  Loyalty is something 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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