Key Takeaways:
- Studies show that companies that undergo rebranding experience increased market share and revenue growth.
- Rebranding is more than just a logo change; it involves transforming a company’s image, identity, and market presentation to better connect with customers, employees, and stakeholders.
- Rebranding helps companies adapt to changing market trends, appeal to a broader audience, and differentiate themselves from competitors.
- Engaging customers during the rebranding process can strengthen their connection to the brand.
7 Benefits of Rebranding Your Company
In a world where yesterday’s innovation is today’s ancient history, companies must evolve or risk becoming corporate fossils. To avoid becoming the business world’s equivalent of a rotary phone, companies need to adapt faster than a viral meme. Rebranding stands out as a potent strategy in this endeavor.
The rebranding process goes beyond a simple logo refresh; it’s a holistic transformation of a company’s image, identity, and market presentation. Through employing the benefits of rebranding, businesses can reshape how they are perceived by old and new customers, employees, and stakeholders, ultimately driving growth and success.
Studies and surveys have shown that the benefits of rebranding can have a measurable impact on a company’s performance. According to a 2022 survey by the branding agency Rebrandly, 74% of companies that underwent a rebranding process reported an increase in their overall market share within the first year. Additionally, a report by McKinsey & Company found that companies investing in rebranding and updating their brand strategy saw an average revenue increase of 23%.
Companies embrace the benefits of rebranding for all sorts of reasons—keeping up with market trends, adapting to shifts in their business model, or bouncing back from bad press. Whatever the spark, a well-executed rebrand can bring a host of benefits. Let’s dive into seven standout advantages that a rebranding process can offer your company.
1. Rebranding Enhances Brand Image
One of the major benefits of rebranding is the chance to refresh and modernize your brand image. As societal values and aesthetic tastes change, businesses need to evolve to stay attractive and relevant. Rebranding lets you sync your visual identity and messaging with the latest trends and your updated company values and mission. This creates a more cohesive and compelling brand story that hits home with both your current and new customers.
For example, Airbnb’s 2014 rebranding transformed its image from a quirky startup to a global hospitality brand. The new logo, dubbed the “Bélo,” symbolized “belonging,” reflecting the company’s mission to create a world where anyone can belong anywhere. This rebranding not only modernized Airbnb’s look but also better communicated its core values and purpose.
Beyond these examples, the experts all seem to agree brand image is one of the major benefits of rebranding. Here are some of my colleague’s opinions, as well as my own thoughts on the importance of brand image:
1. Marty Neumeier, Author of ‘The Brand Gap’:
“A brand is not what you say it is. It’s what they say it is. The power of brand image lies in the perception of your audience, and successful rebranding can transform how a company is perceived in the marketplace.”
2. Seth Godin, Marketing Guru:
“Branding is the set of expectations, memories, stories, and relationships that, taken together, account for a consumer’s decision to choose one product or service over another. The strength of your brand image directly impacts customer loyalty and business growth.”
3. David Aaker, Branding Expert and Author:
“Brand equity is the result of a strong brand image. When consumers see your brand as a leader, they are more likely to trust your products, stay loyal, and become advocates. Rebranding helps keep that image relevant and compelling.”
4. Debbie Millman, Chair of the Masters in Branding Program at the School of Visual Arts:
“In a rapidly changing world, a brand must evolve to stay connected with its audience. Rebranding isn’t just about aesthetics; it’s about renewing the emotional connection with consumers and staying relevant.”
5. Karen Leland, Branding Consultant and Author:
“Rebranding is about more than just changing a logo or a tagline. It’s about aligning your brand image with your company’s values, mission, and the evolving expectations of your customers. A strong brand image not only differentiates you in the marketplace but also creates a lasting emotional connection with your audience.”
2. Rebranding Attracts New Customers
A revamped brand identity is a game-changer for expanding your market reach and drawing in new customers. Rebranding isn’t just about a fresh look—it’s your golden ticket to adapting to shifting demographics and evolving consumer tastes. By aligning your brand with what’s hot and happening now, you can unlock doors to previously untapped market segments and broaden your customer base in ways you never thought possible.
Rebranding can significantly boost a company’s ability to attract new customers, as evidenced by various case studies. For example, the rebranding of Instagram revitalized its brand image, leading to increased user engagement and retention rates. The platform’s new interface and features resonated with users, establishing Instagram as a cutting-edge social platform.
Similarly, Mailchimp’s rebranding in 2018 aimed to reflect its expanded suite of services beyond email marketing. This shift not only improved brand perception but also increased recognition of Mailchimp as a versatile marketing platform, attracting a broader audience and encouraging deeper engagement with its features.
Old Spice’s 2010 rebranding campaign is a prime example of this benefit. Once perceived as a brand for older men, Old Spice successfully employed the benefits of rebranding to appeal to younger demographics. The “The Man Your Man Could Smell Like” campaign, featuring actor Isaiah Mustafa, went viral and dramatically shifted the brand’s image. This rebranding effort not only attracted younger consumers but also reinvigorated interest among existing and new customers.
3. Rebranding Reinvigorates Customer Interest
A rebranding process can inject fresh energy into your relationship with existing customers. A new look and feel can rekindle excitement and curiosity about a brand that might have gone stale or been overlooked. It’s also a perfect moment to roll out new products or services under your revamped identity. This sense of anticipation and novelty keeps loyal customers engaged, encouraging them to explore what’s new with the brand they already know and trust.
Engaging customers during the rebranding process can also strengthen their connection to the brand. Burberry’s rebranding strategy in the early 2000s is a great example. The luxury fashion house involved its customers in the process, leveraging social media to showcase behind-the-scenes content and inviting feedback. This approach not only generated buzz but also fostered a sense of ownership and connection among Burberry’s customer base.
One notable example of a successful rebranding effort is the case of Dunkin’ (formerly Dunkin’ Donuts). In 2018, the company dropped “Donuts” from its name to emphasize its beverage offerings and appeal to a broader audience. This rebranding strategy was supported by extensive market research and consumer feedback, resulting in a 4.2% increase in same-store sales within the first-year post-rebranding.
4. Rebranding Keeps You Competitive
In a crowded marketplace, standing out from the competition is a must. The rebranding process can be a game-changer, helping your company shine and respond to competitive pressures. A well-executed rebrand can carve out a unique market position, showcasing your strengths and unique value proposition. This kind of differentiation is especially valuable in industries where products or services are similar, making brand perception a crucial factor in consumer choice.
Consider the rebranding of Domino’s Pizza in 2009. Facing fierce competition and negative perceptions about their product quality, Domino’s took the bold step of admitting their shortcomings and completely overhauling their pizza recipe. This honest approach, combined with a new visual identity and marketing strategy, helped Domino’s stand out in the crowded pizza market and significantly improved their market position.
5. Rebranding Can Address Negative Perceptions
Rebranding is a powerful tool for shaking off past controversies or negative associations. When it comes to crisis management and recovery, a well-planned rebrand can help your company turn the page on past issues and present a fresh, renewed image to the public. It’s your chance to start anew and redefine how your brand is perceived.
Furthermore, a study published in the Journal of Marketing found that rebranding which included significant consumer engagement and transparency was more likely to succeed. Brands that communicated openly about the reasons behind the rebranding and involved their customers in the process saw higher levels of customer loyalty and trust post-rebranding.
UberCab, now known simply as Uber, underwent a significant rebranding in 2016. This came after a series of controversies surrounding the company’s corporate culture and business practices. The benefits of rebranding the company included a new logo and a shift in company values, was part of a larger effort to address these issues and rebuild public trust.
Another example is Philip Morris, which rebranded its corporate identity to Altria Group in 2003. This move was seen as an attempt to distance the parent company from the negative associations with tobacco, especially as it diversified into other industries.
6. Rebranding Supports Business Growth and Expansion
Rebranding can be a game-changer for business growth and expansion. When you’re entering new markets, merging with another business, or diversifying your offerings, rebranding helps communicate these changes effectively. A fresh brand identity can signal your expanded capabilities or new direction, making it easier to break into new sectors. It also unifies different parts of your business under a cohesive brand umbrella after mergers or acquisitions.
Google’s rebranding to Alphabet in 2015 is a prime example. This restructuring and rebranding allowed the company to better organize its diverse business interests, from internet services to life sciences research, under a single corporate identity while maintaining distinct brand identities for its various products and services.
7. Rebranding to Enhance Digital Presence
The digital world we swim in leaves no option to having a strong online presence as a key business success. The benefits of rebranding provide the perfect chance to revamp your digital assets and boost performance across all online platforms. This could mean redesigning your website, updating social media profiles, and refreshing digital marketing materials. These updates can lead to a better user experience, improved SEO, and more effective online engagement.
Target’s digital rebranding in 2011 is an excellent example of enhancing digital presence through rebranding. The retail giant revamped its website, improved its e-commerce capabilities, and launched a series of innovative digital marketing campaigns. This digital-focused rebranding helped Target compete more effectively in the online retail space and improve its overall digital presence.
In addition, Nike: Nike’s digital transformation included the development of the Nike+ ecosystem, which integrates digital tools like the Nike+ app and Nike Training Club. This strategy enhanced customer engagement and positioned Nike as a leader in integrating digital technology with fitness and lifestyle.
Digital transformation is a critical component of rebranding. It allows companies to enhance their digital footprint, improve customer engagement, and stay competitive in an ever-evolving marketplace. Some of the key benefits of digital transformation in the rebranding process include:
1. Enhancing User Experience:
Digital transformation involves revamping websites, improving mobile compatibility, and ensuring that digital platforms are user-friendly. This creates a seamless experience for customers, encouraging them to spend more time interacting with the brand.
2. Leveraging Data and Analytics:
Rebranding efforts supported by digital transformation can harness data and analytics to understand customer behavior better. This information can be used to tailor marketing strategies, personalize customer experiences, and drive targeted campaigns.
3. Boosting Online Visibility:
A digital-first approach ensures that the brand is visible across various online channels. This increased visibility helps in reaching a broader audience and attracting potential customers who spend a significant amount of time online.
4. Building a Strong Digital Identity:
A well-executed digital transformation can redefine a brand’s digital identity, making it more appealing and relevant to contemporary audiences. This involves updating digital assets such as websites, social media profiles, and online marketing materials.
SEO and online engagement are vital components of a successful rebranding strategy. Effective use of SEO techniques can significantly improve a brand’s online visibility, while engaging content and interactive digital platforms can enhance customer interactions. Some of the tips I have found useful in work with clients to improve SEO and online engagement include:
1. Keyword Optimization:
Conduct thorough keyword research to identify the terms your target audience is searching for. Integrate these keywords naturally into your website content, blog posts, and social media updates to improve search engine rankings.
2. High-Quality Content:
Create and regularly update high-quality, relevant content that provides value to your audience. This can include blog posts, videos, infographics, and whitepapers. High-quality content not only improves SEO but also engages and retains customers.
3. Mobile Optimization:
Ensure your website is mobile-friendly. With an increasing number of users accessing websites via mobile devices, a responsive design that provides a seamless experience on all devices is crucial for both SEO and user engagement.
4. Social Media Integration:
Integrate your rebranding efforts with a strong social media strategy. Engage with your audience through regular updates, interactive posts, and responsive customer service. Social media platforms can drive significant traffic to your website and enhance brand loyalty.
5. Link Building:
Develop a robust link-building strategy by obtaining backlinks from reputable websites. This not only boosts your SEO but also establishes your brand as a credible authority in your industry.
6. User Engagement Metrics:
Monitor user engagement metrics such as bounce rate, time on site, and page views. Use this data to make informed decisions about content and website improvements that can enhance user experience and engagement.
By integrating digital transformation and robust SEO strategies into your rebranding efforts, you can significantly enhance your online presence, improve customer engagement, and drive business growth. This comprehensive approach ensures that your brand remains relevant and competitive in the digital age.
Conclusion
Rebranding is a powerful strategy that can unlock countless benefits for a company ready to evolve and grow. A well-executed rebrand can have far-reaching impacts. These include boosting your brand image and drawing in new customers, as well as tackling negative perceptions and fueling business expansion,
However, rebranding is no walk in the park. It’s a complex process that demands careful planning and execution. It’s not just about swapping out a logo or tweaking your color scheme. It’s about realigning your brand identity with your company’s values, mission, and long-term goals.
When pursuing the benefits of rebranding and embarking on a rebranding journey, it’s crucial to conduct thorough market research. Engage with your customers and ensure the new brand strategy aligns with your overall business objectives.
With the right approach, rebranding can be a transformative experience that sets your company up for future success in an ever-changing business landscape.
How SMG Helps Our Clients to Meet These Challenges
For over 20 years, I have helped CEOs accomplish their business rebranding goals. Much of what I’ve learned about this topic comes from up close and in the fieldwork consulting work with leaders from Inc. 5000 companies, mid-cap companies, and startups.
As an author and columnist for Inc.com, I constantly search for studies, surveys, real-world examples, and techniques to help my clients achieve stronger rebrands that keep them on trend, on brand, and up to date with the marketplace.
If, after reading this article, you find yourself thinking, “Yes, I get it. I need to hire a rebranding agency to help me with this,” but are in a quandary about how to get there, consider booking an initial consultation with me at no charge.
I will review your current brand before our call and give you at least one or two specific ideas you can use to rebrand: no sales, just helpful information and insight. You can book a session with me here.
