Sharpening Strategy: Would a Name Change Help?
Hundreds of companies change their names every year. Some are inspired by mergers or PR issues; others want to signal a new direction. Many changes work out beautifully: Would a search engine named BackRub have become one of the world's most valuable brands if it hadn't rechristened itself Google? But a good name is hard to find. Global and emerging markets are more important than ever, and present linguistic hurdles; securing legal and digital rights is ever more complex. In fact, very few corporate names can say it all. Sarah Bellamy, the senior partner who leads Lippincott's naming group, explains:
Q. Why change a company's name?
A. There are plenty of good reasons. A strategically focused name can support the company's vision, convey something new, and help tell a powerful, brand-aligned story. It can have an impact on external audiences, and galvanize employees. Sometimes, as in the case of a spin-off, merger, or a PR problem, it may be a necessity, whereas changing a name solely for strategic communications reasons is more of a judgment call. But name changes have risks, and require commitment. It can take anywhere from three to five years of time, resources, and discipline to build a strong new brand name in the marketplace.
Q. What is the most difficult part?
A. Getting everyone to understand that finding a good name, anchored in clear criteria and that meets strategic objectives, requires funneling through hundreds and hundreds of name ideas. You can't fall in love with one name too early in the game. We'll start by creating something like 500 options, which may include invented words, historical names, words from other languages or characteristics of the brand. For the names that seem to be the strongest choices, we'll do preliminary trademark screening, and that process alone can eliminate about 60 percent of the choices. After presenting the options we will narrow down further and conduct URL and social media profile searches, linguistic screening and much more extensive legal research, including on occasion how we might negotiate rights to names that are already owned. In fact, the likelihood that any name is totally clear globally is extremely low.
Q. Is testing part of the process?
A. With the client's executive team we usually narrow down to five or six preferred options, and yes, testing can be part of the final selection. But that's tricky—we can almost always predict that people will chose the name or word part that sounds most familiar. In my experience, companies that rely too heavily on testing usually wind up picking the least offensive possibility, which isn't always the best one, and there can be a risk of leaking names.
Q. How important is the new name?
A. Of course, it is very important. But it's also true that a name is something of an empty vessel. It's the meaning that companies inject into that name over time that makes it powerful. There are so many ways to build a brand, and the name is just one part of the way a company tells its story and shapes the customer experience.
Q. What if people really hate the new name?
A. Some will. There can be a knee-jerk reaction against it, as there is with any major change, and it can vary by audience. When it comes to Wall Street, for example, it doesn't matter much; analysts and investors are used to name changes. Customers are also pretty adaptable to change when it is messaged appropriately. Internal audiences, the employee base, are probably the most sensitive. But people usually come around pretty quickly and embrace the name. It's definitely true to say that people's reactions to names evolve as they sit with them and consider the possibilities.
Q. What are some of your favorites?
A. One client, formerly called NetShops, is an Internet retailer that includes many vertical specialty stores, and is known for its ability to find anything. We created a unique word to reflect that: Hayneedle. When Hyatt was creating a chain of boutique hotels around the world, we came up with the name Andaz. It's a Hindi word that means personal style, which is the underlying concept of the new brand and evokes the sophisticated, international nature of the offering and guests. And as AIG needed to re-brand its commercial insurance business, we helped it find Chartis, which is the Greek word for map and speaks to their global coverage and ability to help clients navigate risk.