Brand equity
Definition
Brand equity is the commercial value a brand name adds beyond the functional value of the product — visible as pricing power, preference at parity, lower acquisition cost and higher retention.
It is an asset that compounds and depreciates. Every consistent, well-executed touchpoint adds a little; every off-brand campaign, poor service interaction or discount-led promotion subtracts. The effect is slow enough in both directions that it is easy to ignore until it is expensive.
The clearest practical measures are the price premium the brand sustains against comparable alternatives, the share of traffic arriving through branded search, and how blended CAC moves over years rather than quarters.
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