When you rebrand, you’re not just changing your company’s identity but also how your customers see and interact with it. When you change the way your brand is perceived by the general public, it costs money. To learn how much rebranding will cost and how to make sure it’s worth it, we spoke to experts on the subject. Here are some of the key takeaways:
There is no such thing as free marketing
Marketing is not an Olympic sport, and rebranding is not some kind of ninja stunt. Spending money on rebranding is a business expense. You wouldn’t go to the doctor and say, “I need stitches, but I don’t want to pay for them,” would you? The same goes for branding. Companies spend fortunes on brand marketing, and that doesn’t mean just putting a new logo on a website — brand engagement, the support you get from your customers, the level of service you provide, and the emotional connection you make with your customers all cost money.
Companies spend in the hundreds of millions on rebranding
The $300 million mark is a familiar one when it comes to discussing the financial impact of rebranding. But to put that number in context, it’s important to note that that figure doesn’t include the cost of the brand change itself. It only includes the financial impact of the change when looking at the grand total of all the money companies spend on brand marketing. That said, when you break down the figures by spending category, there are some pretty significant figures to be found: Rebranding is the most expensive when it comes to products, at $247 million. Not only is this money down the drain, but it’s also a waste. Companies spend money on brand engagement, which is the amount customers talk about your brand and how they feel about it, and they don’t spend a lot on customer service, the amount customers spend after they buy their products and services.
Knowing how to measure your brand’s success will help you decide whether it’s worth it to make changes
Before you start the rebranding process, you need to know how you’re doing to measure up to your brand’s standards. To get a better idea of whether you’re achieving your brand’s objectives, it’s helpful to break down the goals into smaller goals and measure them against specific milestones. For example, let’s say your brand’s main goal is to increase customer satisfaction. You could break that down into smaller goals, like increasing the number of customers who are very satisfied with your service or getting a certain percentage of customers to say they would recommend your brand to others. Once you know how you’re doing, you can decide whether or not it makes sense to spend money on brand rebranding.
It all comes down to communication – be skilled at it, or hire someone who is
To make the most of rebranding, you need to be skilled at communication. You need to be able to identify your customers’ problems and provide solutions, both through your brand and in the form of your products and services. But communication isn’t just about hearing the words, it’s about listening as well — and that means being able to pick up on the meanings behind the words you use. It takes practice, but it’s something any business can learn. Hire a branding consultant, or take online training, to help you with your communication skills.
The cost of rebranding can vary greatly depending on several factors, including the size of the business, the type of business, and the industry you’re in. If your brand is new to the area or has a localized name, rebranding may not be the best idea. Instead, you may want to court exposure with guerrilla marketing or use social media to drive traffic to your website. If you’re in a large market, rebranding may not be necessary — and in that case, you probably have a pretty good business already. But for smaller companies that don’t need the exposure, rebranding can be a smart decision. If you’re rebranding, make sure to chat with experts to learn more about how much rebranding will cost and how to make sure it’s worth it.