Building Brand Equity Through the Customer – Leveraging the CBBE Model

Establishing strong brand equity is crucial for companies looking to stand out in competitive marketplaces and build long-term customer loyalty But what exactly is brand equity and how can companies intentionally build it? One of the most well-known frameworks for understanding and managing brand equity is the customer-based brand equity (CBBE) model

In this article, we’ll break down what brand equity is, explain the key components of the CBBE model, and provide actionable tips for leveraging this framework to strengthen your brand in the minds and hearts of your customers. Whether you’re looking to launch a new brand or revitalize an existing one, let’s dive in and explore how to strategically cultivate brand equity.

What is Brand Equity and Why Does it Matter?

Brand equity refers to the value of a brand in the minds of consumers. It’s based on how aware people are of your brand what perceptions and associations they have with it and how loyal they feel towards it. Brands with strong equity elicit instant recognition and positive sentiments when customers encounter them.

There are a few key reasons why brand equity should be a priority for companies today:

• Influences purchase decisions: People are much more likely to buy from a brand they view favorably and trust. Brand equity sways choices at the moment of purchase.

• Enables pricing power: Companies can charge a premium for brands with strong equity as customers perceive higher value.

• Drives advocacy: Loyal brand champions actively recommend brands they love to friends, family, and online.

• Boosts resilience: Equity insulates brands during crises and makes customers more forgiving of mistakes.

Essentially, brand equity equals competitive advantage. Leaders in nearly every industry have built empires by focusing on shaping how the world perceives their brand. As markets get more crowded, differentiating your brand through strategic equity-building is no longer optional – it’s a requirement.

Keller’s CBBE Model – A Blueprint for Building Brand Equity

There are a variety of frameworks for conceptualizing brand equity, but one of the most widely adopted in marketing is the CBBE model developed by professor Kevin Keller. CBBE stands for “customer-based brand equity” – in other words, brand equity that’s specifically rooted in customer perceptions and attitudes.

Published in Keller’s seminal book Strategic Brand Management, the CBBE model presents brand equity-building as a hierarchical process, often visualized as a pyramid divided into four stages:

1. Brand identity
2. Brand meaning
3. Brand response
4. Brand relationships

Let’s explore each of these stages in more detail:

Stage 1: Brand Identity

The foundation of the CBBE model is brand identity. This refers to customers’ awareness of your brand and their ability to recognize and recall it.

To strengthen brand identity, companies should focus on:

• Increasing brand awareness and associations through advertising, promotions, and memorable visual branding

• Ensuring name recognition so customers instantly know your brand when they encounter it

• Developing a consistent brand image through cohesive messaging and visuals

Without widespread brand awareness and familiarity, none of the other brand equity stages can unfold. Making customers aware of your brand’s existence and what you generally offer lays the groundwork.

Stage 2: Brand Meaning

Once brand identity is established, companies can move up to shaping brand meaning. Brand meaning refers to the concrete attributes and abstract image that customers associate with your brand.

Brand meaning consists of two components:

• Brand performance – This includes product attributes like quality, reliability, durability, service effectiveness and overall delivery of practical, functional benefits.

• Brand imagery – This dimension involves more abstract, emotional and social perceptions – how customers feel about the personality of the brand and what it symbolizes.

To influence brand meaning, companies should:

• Make sure products deliver on promised benefits
• Provide exceptional service experiences
• Cultivate a brand image that resonates emotionally with target customers
• Embed brand values through messaging and partnerships

Stage 3: Brand Response

At this stage, the focus shifts to customers’ personal responses and relationships with the brand. Brand response captures how customers actually think and feel about the brand based on direct interactions and perceptions.

There are two key aspects of brand response:

• Brand judgments – These are customers’ rational, analytical assessments of brand quality, credibility, consideration and superiority to alternatives.

• Brand feelings – This reflects the emotional resonance of the brand and how it makes customers feel on an intuitive, visceral level during engagement.

Actions to drive positive brand response include:

• Consistently meeting or exceeding quality expectations
• Making emotional connections at touchpoints
• Monitoring online reviews and feedback
• Quickly addressing concerns or complaints
• Reinforcing strengths and values in messaging

Stage 4: Brand Relationships

The pinnacle of the CBBE model is harmonious, loyal brand relationships. This occurs when customers feel a deep affinity for your brand that transcends transactional exchanges.

Hallmarks of strong brand relationships include:

• Customers see the brand as a valued partner in their lives
• Your brand comes top-of-mind automatically when needs arise
• Customers proudly and actively promote your brand to others
• Customers forgive occasional missteps and remain loyal

To nurture lasting brand relationships, companies must:

• Build an emotional community around the brand
• Continually reinforce functional and emotional benefits
• Offer rewards programs and VIP access
• Provide exceptional service and support

Reaching the relationship stage creates powerful customer advocates who will evangelize your brand to new audiences while continuing to purchase from you, not competitors.

Turning Insights Into Action Across the CBBE Pyramid

Now that we’ve explored the progression of brand equity-building represented in the CBBE model, let’s discuss some core principles and best practices for leveraging this framework:

• Start from the bottom up – Brand identity comes first. Don’t rush into emotional branding without basic awareness.

• Strengthen foundations before moving upwards – Make sure lower stages are solid before advancing so higher levels don’t crumble.

• Track metrics tied to each stage – Brand awareness, consideration, NPS, retention – each stage has different KPIs.

• Keep evolving efforts – Maintain a presence across all stages – don’t retire early activations as you move up.

• Integrate insights across touchpoints – Sales, marketing, ops, support – all teams play a role in shaping equity.

• Monitor the customer viewpoint – Social, reviews, surveys – solicit outside-in perspectives at each stage.

• Close loops with customers – Share improvements driven by feedback to reinforce loyalty.

The CBBE model provides an indispensable blueprint for methodically building brand equity step-by-step. While the pyramid represents a sequential process, it’s important to note that brand-building is an iterative journey. Setbacks occur and stages overlap. Still, maintaining awareness of where your brand sits within the CBBE framework at any moment allows you to identify opportunities to develop meaningful equity with customers at each level.

Equipped with the CBBE model, you now have a powerful strategic tool to elevate your brand in the hearts and minds of customers. By diligently executing the stepwise process outlined above, you can steadily nurture increased awareness, reshape perceptions, spark meaningful connections and ultimately form lasting customer relationships. The long-term rewards of cultivating strong brand equity are well worth the investment – now get out there and start building!