Brand equity can be sourced from many avenues, one of them is providing a superior customer experience.
According to Kantar BrandZ, customer experience contributes to brand growth more than paid media does. This makes creating a strong customer experience not only valuable but essential for brand growth.
We know that the most valuable brands are highly Meaningful, Different, and Salient. The customer experience plays a role in creating this image for the brand. Brands that are highly Meaningful often derive this meaning from meeting customer needs. A seamless customer experience is critical to meeting wide needs in many categories. Shifting customer needs have made this even more relevant and often challenging for brands.
For instance, the shift from in-store to online shopping has changed the apparel industry. Brands that depended on a valuable in-store experience have had to shift to providing a comparable experience online in order to keep up with competition. This has required brands to provide additional measures, including measurement guidelines, free shipping and returns, and virtual try-ons. Aritzia has depended on a strong online customer experience to grow its presence in locations where it does not have stores. A strong user interface makes products easy to find, with Aritzia’s full array of products available for purchase on its website. And its fashion-forward “everyday luxury” branding is transferred to its website with fashion lookbooks and styling examples.
This user interface is paired with a personalized experience, providing suggestions for pieces based on what the user has viewed and allowing them to curate a wish list for ease of shopping. Aritzia’s loyalty program also offers frequent shoppers discounted pieces during its once-a-year Clientele Sale, matching the brand’s “everyday luxury” branding.
According to Kantar BrandZ, from 2019 to 2024, Aritzia grew its Demand Power thanks to growth in its Meaningful score of 9 points. It’s also worth noting that a substantial share of the brand’s equity is sourced from the US, where it has successfully expanded through ecommerce channels.
Shoppers Drug Mart has also had to adapt to changing customer needs, innovating to create an ecommerce platform, taking its inventory online, and creating an app with a strong user experience. However, the brand has retained a strong in-store experience as well, stocking new brands through Beauty Boutique to offer high-end beauty products to compete with beauty retailer Sephora. Prioritizing its Optimum loyalty program has also supported the brand in providing a highly Meaningful customer experience.
Brands can also build differentiation with the experience they provide to customers. A brand that does this successfully is Costco, which revolutionized the in-store shopping experience with its commitment to free sampling and its quite reasonably priced food court. Paired with an array of unique bulk products at affordable prices, Costco differentiates itself from other general retailers, standing out as the second most differentiated (after Amazon) and third most valuable brand in the category (after Amazon and Walmart).
Delivering a strong customer experience can build Meaningful Difference for a brand, which contributes to strong equity. According to Kantar BrandZ, those that connect their brand with experiences see reduced churn, increased loyalty, premium Pricing Power, and more new customers. Brands that can provide a superior customer experience that is highly Meaningful and differentiates from its competitors are primed for brand growth.
View our full 2025 Kantar BrandZ Most Valuable Canadian Brands report here
