Customers identify companies by their brands. A brand can be the primary factor that draws or repels customers to or away from a business. Because so much of a company's identity is tied up in its brand, it can be a risky venture to consider rebranding. However, sometimes rebranding cannot be avoided and if anything, a benefit that should be embraced. These signals can indicate that it is time for a company to rebrand itself in a bid to draw more customers.
1) Decreasing Sales
Most companies experience a lag in sales from time to time. However, a chronic decline in sales and revenue should be a warning sign that it may be time for a company to rethink its brand. By figuring out what it is exactly that is keeping customers away, business owners can then take the remedying steps to revamp itself, its practices, and its overall brand in a bid to regain customers. Once customers see that a company has taken strides to improve itself, they may be compelled to give the business another try.
2) A Change in Management
A new management team can be an exciting addition that calls for a business to rebrand itself. When the new managers have a different vision or goal for the company, they can inform their clients about the upcoming exciting changes by redoing the company's brand. Rebranding amidst a change of management can pique customers' curiosity and stir their excitement about how their favorite company will be even better.
3) Change of Function
Anytime a business changes the way it serves its customers, it should rethink its brand. Adding on or taking away services are vital pieces of information about which customers should rightfully know. When the business rebrands itself, customers know how this change will affect them the next time they visit the store or office. By telling the public that it has added services or changed its existing business practice, it can expand its customer base.
4) Attracting New Customers
When a company wants to attract new customers, it can rebrand itself to accomplish this goal. Sometimes a business might find that it is attracting the wrong kind of customer or a demographic that it preferably would rather focus on less. Rebranding to attract a different age group or segment of the population can help a business accomplish this. While still being able to serve everyone, the new brand ultimately could appeal to the desired client base more. This situation may apply when a clothing store wants to attract younger shoppers. It may change its brand to be more stylish and trendy in a bid to appeal to younger consumers.
5) Owner Boredom
At the end of the day, business owners are human and subject to the same temptations and behaviors as everyone else. When an owner becomes bored with the way his or her company brand looks or just wants to bring new life to the company, he or she can reinvent the brand. This scenario particularly could be the case when a person inherits a business from his or her parents. While the parents may have thought the brand was exciting and engaging, the child who inherited it may have other plans. Bringing the brand up-to-date and changing the image of the company could bring new life to the business and also rekindle the owner's commitment to it.
A company's brand remains one of its biggest identifiers. Customers often instantly recognize the brands of their favorite businesses. Because of the extent that a company's overall identity is tied up in its brand, it could be risky to change this identifying factor. However, rebranding can be a practical business solution for a number of different challenges. These signals indicate that a company may survive and grow if it changes its brand.