Glossary

One-word Equity

One-word Equity

One-word Equity

The "one-word equity" is the highest level of condensation of a brand: It summarizes its positioning in a single word and defines what the brand stands for and/or the direction it wants to develop. This value must be tangible at all touchpoints because it embodies the core of the brand.

If a one-word equity is highly authentic, it can also be considered a management system: It reduces the risk of bad decisions and helps to increase revenue by setting the brand clearly apart from the competition. A fitting one-word equity therefore not only attracts loyal customers, but also makes them into fans – but only when the brand promise is kept in all interactions with the brand.

The brand Volvo, for instance, consistently implements its one-word equity "safety". Peak performances like the invention of the seat belt or "IntelliSafe" (a driving assistant that uses artificial intelligence to recognize hazards early) represent and affirm the brand positioning. Volvo fans know that they can rely on the auto maker when it comes to safety – and are willing to pay a price premium for it.

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