One of the most common questions we get asked is “When should I rebrand my company?” And for good reason.
The short answer is that it depends.
It depends on what business problem(s) you have. When you invest in your business, you expect your investment to alleviate a business problem. Branding is an investment in your business, and like any investment in your business you expect an ROI on your investment. Branding can deliver an incredible ROI because it solves a multitude of business problems.
That’s the good news.
The bad news is that it can also be a poor investment if you expect branding to solve business problems that branding can’t address.
Below are problems that branding CAN solve, followed by problems that branding CAN’T solve. We hope that this will give you guidance as you decide whether or not branding is right for your business at this time.
Problems Branding CAN Solve.
1. You aren’t charging what you are worth
Branding is about creating a desired perception. Therefore, if you are perceived as low-cost or simply aren’t able to charge the prices you deem necessary then branding can elevate people’s perceptions of you, allowing you to charge premium prices.
2. People aren’t clear about who you are, what you do, or how you can help them
The branding process will bring clarity to your business. Clarity around your message, visuals, design and brand architecture will create understanding for your customers, which is, obviously, critical for business success.
3. Your conversions are too low
Branding can take your marketing to a whole new level. If you are at a place where you understand marketing, and understand how to get your brand and message in front of the right people then a re-brand could exponentially increase your marketing performance and conversion rates. Simply put, if you know how to be seen, looking great and saying the right things will be huge for your business.
Problems Branding CAN’T Solve
Branding can dramatically increase sales, which is, of course, one of the best things about branding. However, if your business doesn’t have the infrastructure in place to handle the increase in business then branding can have a detrimental effect on your business. A great brand will quickly deteriorate if customer satisfaction erodes. If you can’t handle the burden of increased fulfillment, then a great brand will quickly do you more harm than good.
2. The selling of commodities
A great brand elevates the value of products and services, barring that the products and services are not commodities. What are commodities? Things like natural resources: sugar, steel, gasoline. Do you really care what brand your gas is, or do you just care about which station has the lower price? Exactly.
3. Sales Conversations
Branding in many ways “pre-sells” your products or services for you. It makes people want your product or service on their own, without a “hard sale.” However, there is no substitute for sales. If you are uncomfortable with a sales conversation, or uncomfortable asking people for money then branding isn’t going to solve your problems. A great brand will get you more sales conversations and make these conversations easier, but it won’t ever replace sales as a necessary business activity.
Before re-branding your business, consider WHY you want a re-brand and what business problems you hope branding can solve. Be sure you are re-branding for the right reasons. If you are, branding can be the difference between your current business and the business and life of your dreams, but if branding is done for the wrong reasons it won’t help your business grow in the right way, and can even be detrimental if you don’t have the know-how or infrastructure to handle everything that comes along with an elevated place in your market.