When you’re coming up with your business name you will very likely talk with people who tell you not to bother with thinking about your business name. They will tell you that there is no actual value to a business name – that names are just extras they aren’t worth investing in. However, research has proven that simple, attractive names outperform lackluster names on the stock market by up to 33%.
Instead of examining the direct financial value a good brand name brings, it’s important to consider the opposite. How can a lackluster brand name devalue your presence in this modern market? Let’s consider the possibilities of how a poor name can diminish your brand.
A Poor Name Won’t Set a Solid Brand Foundation
In today’s crazy business world, first impressions matter a lot. In general, your name is the first thing a probable customer will hear about your brand. Your brand involves all aspects of your brand including your name, logo, mission and values. It summarizes what your business is and what your business wants to be one day.
The business name is basically the core identity of your company. If it is too weak, it will not be able to help your brand move forward.
Fail to Capture Audiences
With so many business options out there, your audience is probably overwhelmed. You probably offer extremely unique services or products, but without a great name to make your business stand out, you may lose customers. If your name does not capture the attention of your audience instantaneously, they will move on without checking out the different options you offer, which will ultimately cause you to lose potential revenue sources.
A good brand name should make a connection between your audience and your brand. The name should also offer the target market something to hold on to and remember. For example, part of the reason why the tech giant Apple is so successful is because they have a great business name. It is a strong business name because everyone has experience with apples. An apple is one of the most fundamental, accessible fruits, and it is a physical, everyday object. Giving a technology company a name of a tangible fruit is exciting, so the name captivates Apple’s target audience.
Your idea may be great but if you don’t have a way to create a connection between your audience and your business as early as possible, you risk losing the attention of your audience. Even if the business name catches a few extra people to make purchases from your business, it’s definitely worth investing in.
Drive Audiences Away
As much as your name must excite your audience, you have to ensure it does not drive them away from your business. Challenging, confusing, or distasteful names may drive away a large portion of your customer base. Avoid choosing a business name that is cringey or embarrassing as they will likely offend or embarrass customers while sending them the wrong message about your business.
Choosing a company name with audience testing is a quick and easy way to confirm that your name will perform well with your target demographic once your business hits the market.
A Forgettable Name = A Forgettable Brand
Even if a customer wants to remember your name after hearing about your brand, if it is too boring or confusing they probably will not remember it. When your target audience cannot remember your name then you are losing out on sales and potential lifelong customers.
A memorable name makes for a brand that your customers or clients will never forget. You can make sure that your brand does not fall to the wayside by creating a catchy, memorable name. Check out a list of some winning brand name ideas to get a good idea of what names catch you attention.
The final thing that a poor name can do is lose your referrals. A solid brand name not only has the power to attract and capture your audience. In addition, a good name is known to drive referrals and help you spread your brand to new people. Even if you had someone use your services and rave about it, if they can’t remember your name when it matters, they are less likely to pass it along to friends and family. This means that you would lose out on those sales because your name was not strong enough make your brand successful through referrals.
As you know, referrals drive business, and the best way to get more referrals is through having a strong name. Investing your precious time and resources into your business name will definitely be worth it in the end. It’s all worth it because your name will maximize your profits later on.
Grant Polachek is the Director of Marketing at Inc 500 company Squadhelp.com, the worlds #1 naming platform, with nearly 20,000 customers from the smallest startups across the globe to the largest corporations including Nestle, Philips, Hilton, Pepsi, and AutoNation. Get inspired by exploring these winning brand name ideas.