business builder marketing
As markets change,
perhaps company name should, too
You’re an established company. You’re in business to do more business. And although your company name has served you well in past, you’re not sure whether it accurately conveys who you are anymore. Should you change it? Or leave it alone?
Andersen Consulting to Accenture. WorldCom to MCI. Dayton’s to Marshall Field’s. Many businesses have transformed their images through a name change, and the reasons for taking on a new name are as diverse as the companies themselves.
Perhaps you’ve merged with another business and need a name that better reflects your combined resources. Maybe new capabilities or new market opportunities have caused you to outgrow your current name. Or maybe you need to escape the tarnished reputation of your current name. Whatever your reasons, if you’re considering a name change, here are some issues you should think about.
Name reflects brand
Your name conjures an image that tells others who you are and what you stand for. The goodwill inherent in your name is called brand equity. It can build customer loyalty and increase your bottom line, so before you go messing with it, you need to consider the ramifications.
Brand equity can be positive, negative or non-existent. Begin by taking a look at how much or how little your name contributes to your overall brand image. Don’t rely exclusively on your own perceptions. With all you have invested in it, your business is a lot like your child; it’s hard to see it impartially.
Ask your employees, your customers, your vendors what your name means to them. Does your name stand for growth? Strength? Commitment? Innovation? Or does your name imply negative qualities, like shoddy quality, unresponsive service, unethical business practices? You might be surprised to learn your stakeholders don’t attach any specific qualities to your name, which is often the case when companies haven’t taken the time or effort to build brand equity.
Next, look a little harder. Step outside of your business and look from the outside in. What does your company’s name say? What personality does it present? And most importantly, does it educate the public? If you specialize in lawn care, you want to be focused on service. Organics. Aesthetics. A sportswear company may want to tout its high-tech design and performance. What does your name communicate?
Yesterday, today, tomorrow
Think back to the days when you were just dreaming of opening your business. The excitement, the fear — the pure, utter anxiety that was so fresh and invigorating. That was yesterday. When you went into business, you had a vision in mind. Does your name speak to that vision? Is that vision still in line with the company you are today? How about the company you want to be tomorrow?
Now look at all you’ve learned and accomplished in taking your business from dream to reality. That’s your today. Have you stuck to your original plan? Or did your business take a new path you never imagined?
And don’t shortchange what you want to be in the future. What’s your plan? Changing markets and opportunities often nudge companies in new directions. Spend time living in the tomorrow so you can adequately evaluate the role your name might play in shaping your future. Reflecting on these questions can help you decipher whether changing your name is the right thing to do.
To change or not
Once you’ve objectively assessed the equity your name holds in the context of your past, present and future business goals, it’s time to explore your options. You can leave your name alone, change it, or keep your existing name but reposition or revitalize it.
Leave it alone. The stronger the positive equity in your name, the more risky it is to change it. Yes, it’s possible to transfer the equity to a new name, but it takes significant time, effort and resources do it well.
Consider what a new name might gain you, as well as what you might lose. There’s wisdom in the adage “If it ain’t broke don’t fix it.” That’s not to say you should never fix a name that’s not broken. Sometimes, circumstances like a merger force you to change your name, even when you’d prefer not to. It just means you shouldn’t change for change’s sake, or for emotional reasons that don’t have a solid business foundation.
If you decide your name is a good one that accurately describes your vision and provides the flexibility you need, keep it. You’ll save yourself a fortune in new sales literature, signage and letterhead.
Change it. If your business has outgrown its name, though, it might be time for a change. A manufacturing client was in just such a situation when it decided to change its name. It was operating in a mature market segment, and its growth hinged on branching out to new customers in different markets. While its old name spoke perfectly to its old base, it limited the company’s ability to speak effectively about its products and services to the new markets it was going after. Though its name had strong, positive equity, it simply didn’t fit anymore. A new name repositioned the company for a more profitable future, given the market realities it faced.
A tarnished brand image is another reason why companies seek a name change. If that’s the situation you’re in, keep in mind that a new name can help get you off on a fresh start. But unless you’re willing to correct the issues that gave you a bad name in the first place, any benefit to changing your name will be short- lived.
Reposition or revitalize it. After researching the equity in your brand, you might come to the disheartening conclusion that it has none. Or very little. Don’t take it too hard. There is a silver lining. If people have no preconceived image of your name or your brand, you have the opportunity to build the kind of equity you want. Maybe you don’t need to change your name, but it’s time to bring your logo up to date. Refresh your image so it’s more contemporary. Reposition your vision and mission to better reflect what’s important to your customers.
If you do decide to change your name, remember that people don’t always react positively to change, so it’s important to communicate the meaning of your new name. If you don’t share your story in a positive way, people will interpret it the way they want. Look at it as an opportunity to create your own destiny.
No matter what, remember that your company name is the first thing people know about you. Make sure it says what you intend it to say.
