5 things to consider before renaming your company
November 30th, 2011 § 1 Comment
When it comes time to analyze whether or not a name change will help or harm your company, there are a few factors that need to be considered. While a new name is exciting, fresh, and gives you opportunity to explore areas you may have been otherwise unable to explore, you need to make sure you’re changing it for the right reasons.
When contemplating a name change, consider the following:
1. Does your name have brand equity?
Will you lose customers if you went by a different name or does your product or service stand well enough on its own to be valued and desired regardless of the name? The best way to analyze this area is by taking a look at your customer relationships. If you have several larger, loyal customers who would come to you no matter what you were named, you might be OK with changing your name. If your customers pop in and out due to their recollection of your specific brand name, falling off the radar one day could cost you quite a bit of steam.
2. Will the possible outcome of this change outweigh the costs?
This isn’t just monetary expenses such as product packaging, but the resources it will take to effectively communicate this change across your company and to your customers through marketing. It takes a very solid, well planned out communications strategy to get this modification in front of the consumer in a way that they’ll understand. Not to mention, you’ll need to prepare to handle backlash and questions while monitoring and participating in conversations happening online.
3. Are you changing it for the right reasons?
“Because you’re sick of it and want something new”, sadly, isn’t one of them. Knowing your customers have difficulty finding you because it’s a common word, is another. This decision should always be a business decision, not an emotional one.
4. Are you prepared to change your name and stick to it?
If this renaming thing is a common occurrence for your business, there’s probably an underlying issue that’s not being addressed by this change. It’s time to start fresh and get a solid foundation down so that the next name you chose is the final one.
5. Is this name change being prompted by things that are actually important?
If you’re wanting to change your name so you have an easier URL or better social media addresses, it may not be worth the change. With so many people out there sitting on so many domains, struggling to find a URL that’s unique and available and naming your business after it is missing the point of a business name. While simple URLs are always going to be preferred, there’s plenty you can do with search marketing to ensure your name is still showing up and there’s little confusion with your web addresses.
And now, a few good reasons for a name change:
- A shift in primary business focus
- Merging with or detaching from another company
- Difficulty with spelling or pronunciation
- Indistinguishable from others in your industry
- Confusion due to changes in industry/technology
Juliet of the house of Capulet would classify as one of those loyal, passionate fans that could handle a new brand name.
“What’s in a name? that which we call a rose
By any other name would smell as sweet;
So Romeo would, were he not Romeo call’d,
Retain that dear perfection which he owes
Without that title. Romeo, doff thy name,
And for that name which is no part of thee
Take all myself.”