The effect of a brand name on customers is beyond dispute. After all, some of the biggest brands in the world have names that are not only easy to recall, but recalled with a lot of adoration. This is what makes brand naming an essential feature of branding design.
Remember that your brand name is the identity people associate your business with. It can create a perception of your company. With time, customers associate your brand with this perception and vice versa. So, the fact that there’s power in brand names is true.
But, not everyone is convinced of the influence that a brand name has over people’s opinions. Here, we’ll explore the influence of brand naming on how customers perceive you. We’ll also discuss how names are just as important as brand logos in the branding strategy.
Brand Names Establish Brand Identity
Your brand name establishes your brand identity. This is why it’s considered a building block for your brand image. It allows your customers to identify your brand in a sea of other brands in the market.
The brand personality created by a name is the building block for any brand. Often, the first step in starting a company is choosing a name for it. This is true for all kinds of companies regardless of their size and brand positioning.
Choosing the right name for your brand can be a time-consuming and grueling process. Experts might agree that designing a marketing campaign is easier than choosing a brand name. This is because a branding name is often the first thing people notice about your brand and hence to make it unique and at the same time easy to recall can be a challenge for many.
If people find your brand name difficult to read or pronounce, this isn’t always a good sign. However, in some rare cases, this works for some kinds of brands as it offers exclusivity.
Sometimes, brands rely on unusual names to promote the feeling of exclusivity. These brands are often luxury brands that wish to create a unique identity. So, they choose names that not everyone would find easy to pronounce (think: Givenchy). But, this doesn’t work for brands that wish to assume a more common identity.
Companies selling household products rely on names that are easier to pronounce. Some good examples of this would be Tide, Vicks, and Dettol. The fact that these names are easy to remember adds popularity to their identity. Add to it the fact that the customers of these brands are the best brand ambassadors you can ask for, the name should be easy to pronounce and recall.
Brand Names Create Brand Perception
Another reason why your branding name is important is it creates brand perception. You should focus on brand naming if you want to leave customers with the right impression, but, what makes up the right impression among customers differs from brand to brand.
The perception of a brand is closely linked to its brand identity. So, the point we made about easy-to-remember brand names applies to perception as well. If you choose a simple brand name, people will expect your products to be simple too.
A good example of this would be Nike, a world-renowned producer of sporting goods. This company produces simple yet effective sporting goods for people of all ages. The simple brand name hints towards the fuss-free approach of the company’s designs. Nike has kept its branding strategy simple – collaborate with the leading stars in the field of athletics for promotions. Look at where it has led the brand to today – the number one position.
Its designs are pretty straightforward, as is expected from athletic apparel and equipment. On the opposite end of the spectrum is Lamborghini, a manufacturer of luxury cars. The name of the brand is relatively unusual and points towards luxury.
Anyone hearing this name for the first time might assume it’s the name of an exclusive brand. That’s the power a branding name has in brand perception.
You should remember that people that approach your business for the first time may have no idea what you’re all about. The brand name and brand logo you choose will create the first impression on them. If these features resonate with them, they might buy your product. When they buy a product for the first time, they hope it’ll provide a quality experience. Popular brands are known to create quality products consistently.
This consistency in product quality contributes to brand perception. So, it’s no surprise that it adds to the evolution of a brand name. Besides, in time, people will learn to associate their positive experience with your brand name.
Brand Names Cultivate Loyalty
Your brand names can also play a role in cultivating customer loyalty. With time, customers develop loyalty to brands that provide them with good products. Customers should have high-quality experiences every time they buy from you.
This will create a strong attachment to your brand and they will buy from you often enough. Brand loyalty will have your customers coming back to you now and again. This is a good thing because returning customers are a big revenue source for most companies. Catering to existing customers is usually cheaper than winning over new customers.
This is why customer retention is such an important part of any branding strategy. A good branding name will play a key role in ensuring you have high customer loyalty. Customers who can relate to your brand name will be there for you always.
This is pretty useful considering most brands do encounter hard times at some point. So, it’s important to have customers that will buy from you consistently. Loyal customers will also help your marketing efforts via word-of-mouth. They’ll help you win over new customers with verbal or written reviews.
It’s easy to see why this is a useful bit of free marketing for your brand. Also, loyal customers would wait and buy from you under all circumstances. This is because these customers trust the quality of your products. They know that the quality you’re offering them isn’t easy to find elsewhere.
They can help add to the popularity of your brand name in this way. It doesn’t matter how popular your brand is already, a bit of positive publicity won’t hurt you. This publicity will help you sustain your brand in the long run.
Brand Name is a Part of Branding Design
Few marketing experts would argue against the importance of a name in branding design. These experts would know that the design of a brand often starts with a name. The second aspect to follow is usually a brand logo. A good brand logo is often based on the name of your company.
For instance, the brand logo of Hot Wheels features the brand name framed in a banner of flames. This design neatly associates the name of the company with its brand logo. Doing so allows it to give customers a faint idea of what the product is all about.
But, not all companies match their name with their brand logo. Think of the company Starbucks, a global chain of cafes. The name of this company has little connection with the brand logo. The logo features a Siren that’s meant to reference Seattle and the sea.
Few people would guess the origin behind the logo of this famous brand. But, what matters here is that both the brand name and logo are easy to remember. This is why these features are often considered integral to branding design.
Brand Name as an Asset in Branding Design
Also, it’s important to remember that a brand name is a key asset in branding design. When companies are valued, their brand design is considered an intangible asset. The valuation of intangible assets needs a fair bit of judgment from accountants.
But, there’s no arguing that brand value can be a significant part of a company’s value. What you represent to your customers is a large chunk of your business. If you ever plan on selling your company, you can make good money from your branding design.
A potential buyer would know the difference your brand name can make to customers. They would know that your customers often pay a premium for your products. So, they’d be willing to pay for your brand logo and name if they buy your company.
Calculating the value of these branding design features is often complex. You would need to consider the revenue and sales from these branding features first. Remember, you spent considerable resources on creating these features.
Your time, money, and creativity are just some of these resources. So, it makes for you to have your brand valued now and again to determine its worth.
Conclusion
Choosing a brand name for your company is no mean feat by any account. It can take up considerable resources from your marketing department. If you’re a small startup, it could also present significant expenses for you. However remember it is a vital step and you mustn’t leave choosing a name until the last minute.
Remember that your brand name is something customers identify you with. You can help your brand grow more memorable with the right name. Besides, it’s important to match the level of your products to your brand name. Customers will come to associate the quality of your products with your name.
In the long run, your customers might help you with brand promotion too. They’ll tell potential customers about their positive experiences with your brand. A good brand name would play a huge role in such a scenario as well. A well-thought-out name and brand logo can make your brand memorable.
So, it makes sense to spend as much time as possible choosing the right name. After all, you may change your products, but a brand name is hard to alter.