Our Point of View: Measuring Brand Equity as a Driver of Growth

At Sprout, we see brand equity as one of the most powerful drivers of sustainable growth. It goes far beyond awareness or usage, and it is certainly more than a collection of disconnected KPI. Brand equity is the commercial power of perception.

It is the sum of how people experience your brand, what they expect from it, how strongly it meets their needs, and why they choose it over others - often subconsciously. Strong brands win because they are meaningfully chosen consistently in the long-term.

That is why measuring brand equity must go beyond recall and penetration. It must start with understanding people - their behaviors, aspirations, trade-offs, and emotional connections. Only then can we understand the true strength of a brand in market.

The human foundation of brand measurement

Markets don’t move. People do.

Behind every purchase decision is a negotiation:

• Does this brand understand me?

• Does it solve my problem better?

• Can I trust it?

• Is it worth what I pay?

Our approach anchors brand measurement in this human reality. We decode not just what consumers say, but what drives their preference, loyalty, and willingness to advocate. Because equity lives in memory, emotion, and experiences.

We evaluate brand equity through four validated dimensions that consistently explain why brands grow, stagnate, or decline.

1. Familiarity

How well is your brand known - and understood?

Familiarity is not just recognition; it is mental availability. It measures whether your brand comes to mind easily, in the right moments, and with clear associations.

Brands don’t grow because they are seen. They grow because they are remembered when it matters.

2. Relevance

Does your brand truly meet consumer needs - and do people feel it fits their lives?

Relevance is the engine of demand. It reflects how well your brand aligns with functional needs, emotional expectations, and cultural context.

Many brands are known. Far fewer are meaningfully considered.

3. Differentiation

How distinct is your proposition versus the competition?

This dimension captures your brand’s ability to stand apart - not through messaging alone, but through perceived uniqueness.

If customers struggle to explain why you are different, the market will eventually price you like everyone else.

Differentiation is what protects margin, drives preference, and builds long-term defensibility.

4. Value Perception

Do consumers believe they receive fair value for what they pay?

Value is not about being the cheapest. It is about delivering a benefit that justifies the cost - emotionally and rationally.

Strong brands command price because they justify it in the minds of their customers.

Bringing It Together: The Brand Equity Score (BES)

To make these dimensions actionable for leadership teams, we integrate them into one powerful metric: The Brand Equity Score (BES).

BES is a composite index that synthesizes Familiarity, Relevance, Differentiation, and Value Perception into a single measure of brand strength.

It closely mirrors real market performance - including market share outcomes.

In our experience, BES functions as:

• A leading indicator of market share movement

• A diagnostic of competitive advantage

• A tracker of brand momentum over time

• A decision-making tool for prioritizing investment

Where traditional metrics describe what has happened, BES helps predict what will happen next.

By understanding where equity is being built - or eroded - we help organisations:

• Identify growth levers with the highest return

• Focus investment where perception gaps exist

• Align brand, experience, and pricing strategy

• Track whether strategic actions are truly strengthening the brand

We see brand equity as a dynamic system - continuously shaped by experience, competition, culture, and expectation.

Measuring it properly and continuously allows leaders to move from instinct-led brand building to evidence-led growth.