When you’re coming up with names for your business, you might run into people who tell you not to worry about it and that it doesn’t matter. They will say that there isn’t a tangible value to a business name and that names are just frills that aren’t worth time and resources. However, this isn’t true. In fact, studies show that simple, catchy names outperform boring names on the stock market by up to 33%.
Rather than thinking about the monetary value a great brand name brings, consider the inverse. How can a poor brand name damage your brand presence in the business world? Let’s think about the possibilities!
A Bad Name Won’t Establish A Solid Brand Foundation
In today’s modern market, first impressions are everything. Sometimes, your name is the first thing a potential customer will learn about your brand. Your brand encompasses everything from your name, logo, mission and values. The brand encompasses who you are, and should be rooted in the name.
The brand name should sum up the identity of your company. That means if your name is weak, it will not be able to help your brand move forward and set the stage for success.
Fail To Capture Audiences
There are so many options in today’s market that your audience is probably overwhelmed. Even though you could be offering unique services or products, without a solid name that intrigues your audience, you could lose customers. If your name does not capture their attention immediately, customers will move on without seeing what options you offer. And this loss of attention could cause you to lose potential revenue sources.
A good name should create a connection between your business and your target market. For example, part of the reason for Apple’s success is because of their name. Everyone has experience with apples, it’s one of the most basic, accessible fruits, and it is a tangible, everyday object. By naming a huge technology company after a simple, everyday object is intriguing, therefore the name captivates an audience.
Drive Audiences Away
As much as your brand name must captivate your audience, it should also make sure it does not drive them away. Difficult, confusing, or offensive business names could drive away a large portion of your customer base. Avoid cringey or embarrassing business names as they will likely drive customers away and send the wrong message about your business.
For example, a salon called Curl Up & Dye has a descriptive and clever name. The problem is that the name may send people the wrong message about the quality or type of service offered. The name relies on the customer’s sense of humour, but risks lose potential clients that do not find the punny brand amusing or do not understand the humour.
Audience testing is an easy way to validate that your name performs well with a target demographic.
A Forgettable Name = A Forgettable Brand
If a customer can struggle to remember your name, if it is bland or too confusing to say and spell, they probably will not remember it even if they wanted to. When your audience cannot remember your name, it’s pretty much guaranteed that you will lose out on sales.
A great example of fixing a forgettable name is Jeff Bezos. Jeff Bezos started brainstorming ideas for an online book retailer. Finally, he decided on called Cadabra, Earth’s largest bookstore. The name was supposed to be short for the magic term “abracadabra,” but Bezos realized that the name was not catching on. People had a tough time spelling and understanding the name, and many simply did not understand the reference to magic. Also, some people would accidentally hear “cadaver” over the phone or in crowded bars instead of Cadabra. Finally, after brainstorming with his wife, Bezos changed his company name to Amazon, and then his company became the giant it is today.
A memorable name makes for a brand people will easily remember. Make sure that your brand does not fall to the wayside by deciding on a snappy, memorable name.
Lose Out On Referrals
A great brand name has the power to captivate and draw in an audience. In addition, it can also drive referrals and make spreading your brand easier. If a customer can’t recall your name or if they find it too difficult to say out loud, they are less likely to pass it along to friends and family. Then, you will lose out on those sales because your name was not strong enough to carry your brand.
At the end of the day, your brand name should be appealing and memorable enough that it sets your brand up for future success. If you fail to set a solid foundation for your brand with a good name, you will lose out on potential clients and the potential referrals from those clients.
Referrals are a key factor in driving business, and referrals work through names. By investing time and resources into your business name, you will find that it’s worth it in the end because it will maximize your profits. Each and every aspect of the brand adds up in the end, and if your name helps you get one extra piece of press coverage or more referrals, it makes a huge difference.