Rebranding projects are much more than facelift exercises. As with any design project, they can significantly benefit the business strategy.
Executing a rebranding initiative demands meticulous preparation, a substantial investment, and accurate comprehension of the potential ROI. The risks and benefits of a rebranding project must be carefully evaluated. Organisations can easily stumble into unexpected complexity when facing these projects. The delta between PROs and CONs can create critical friction between business departments and overcast the expected return on investment (ROI).
According to my experience, when a rebranding project starts, the collaboration between departments is crucial to list all the problems and focus on what will unleash more business potential. Afterwards, the coordination among departments concerning its implementation can make a difference in determining its success.
I’ve listed the topics that can help evaluate the risk of embarking on a rebranding project and better foresee the business value it could unlock for the organisation.
Why a company starts a rebranding project?
In today’s highly competitive business landscape, companies often turn to rebranding projects as a strategic move to rejuvenate their image, attract new customers, and stay ahead of the competition.
Brand Strategy Development
Rebranding projects must consider what the company learned regarding market research, competitor analysis, defining target audience personas, and identifying key brand attributes with the current brand identity. This knowledge is precious for an organisation to understand why it needs a new CICD and what opportunities the rebranding project will unlock.
Design and Visual Identity
One of the most visible aspects of a rebranding project is the creation of a new visual identity, including logos, typography, colour palettes, and graphic elements. Design costs can vary significantly based on the complexity of the design work, the number of deliverables needed (such as website redesign, packaging, signage, etc.), and the involvement of external agencies or design professionals. A clear strategy is mandatory for orchestrating the people developing and executing the rebranding project.
The cost of a rebranding project
Rebranding is a comprehensive process that involves various elements, including brand strategy development, design and visual identity, messaging and positioning, and marketing and communication efforts. The cost of a rebranding project can vary significantly depending on the company’s size and complexity, industry, project scope, and the extent of changes required. On top of that, the cost of implementing the new CICD must be considered across all the digital and analogue touchpoints. I experienced issues communicating, planning and executing the rebranding project on this last point. Let’s only consider the cost of changing the font across analogue and digital touchpoints. We quickly understand that this is a process that requires tech, design and product closely working together to figure out how to transition from the current to the new font in a way that doesn’t create critical blockers for the business and the user experience.
Expected Return on Investment (ROI)
While the cost of a rebranding project can be substantial, evaluating the potential return on investment is essential to determine its value for a company. The expected ROI can vary depending on the specific goals of the rebranding initiative, industry dynamics, market conditions, and the effectiveness of the implementation. I listed some key areas where companies can expect a return on their rebranding investment:
Increased Brand Awareness:
A successful rebranding effort can generate significant buzz and attention, raising brand awareness. This heightened visibility can attract new customers, improve brand recognition, and create opportunities for business expansion. A solid and memorable brand identity can help companies stand out in a crowded marketplace, positively impacting sales and revenue.
Improved Customer Perception:
Rebranding allows companies to reshape how their target audience perceives them. By refining brand messaging, positioning, and visual identity, companies can create a more favourable impression among customers. This enhanced perception can increase trust, loyalty, and customer engagement. When customers perceive a company as more relevant, modern, and aligned with their values, they are more likely to choose its products or services over competitors.
Improved usability:
Learning from the current implementation is a must. Having in mind what problems the existing brand identity generates in terms of usability and accessibility is a unique opportunity to improve the overall UX of the digital touchpoints drastically.
Market Differentiation:
In today’s saturated market, standing out from the competition is crucial. Rebranding allows companies to differentiate themselves by showcasing their unique value propositions, key differentiators, and areas of expertise. Companies can carve a niche and attract a specific target audience by effectively communicating their distinct advantages. This differentiation can result in a competitive edge and increase market share.
Expanded Market Reach:
Rebranding can open doors to new markets and customer segments. By repositioning a brand or targeting a different audience, companies can tap into previously untapped markets and expand their customer base. This can drive growth and revenue streams from previously unexplored avenues, offering long-term sustainability and profitability.
Employee Morale and Productivity:
Rebranding often involves internal communication and engagement initiatives. This helps align employees with the company’s new vision, mission, and values. When employees feel connected to the brand and its purpose, their morale and productivity increase. A motivated and engaged workforce can positively impact customer service, innovation, and overall business performance.
It’s important to note that the expected ROI of a rebranding project can vary based on several factors, such as the industry, target market, competitive landscape, and the company’s ability to execute the rebrand effectively. Additionally, ROI might not be solely measured in monetary terms but could include intangible benefits such as improved brand reputation, increased customer loyalty, and enhanced employee satisfaction.
Conclusion
Rebranding projects require a significant investment of resources in terms of time and money. However, they can yield substantial company returns when executed strategically and thoughtfully. To list some of the potential benefits such as increased brand awareness, improved customer perception, market differentiation, expanded market reach, and enhanced employee morale. By understanding the costs and expected return on investment, companies can make informed decisions about pursuing rebranding initiatives to stay competitive and achieve long-term success.
Image credits
Photo by David Pisnoy on Unsplash