Reason to Choose Non-Restrictive Inclusive Business Name for Rebranding
Rebranding is a costly process. You should not repeat the mistake by selecting a restrictive name again. Do not limit the scope of your business field by choosing a brand name with clear and literal meaning. You should either prefer a completely meaningless business name – for example, Sony, Oppo, Evri. → Watch Video.
If you prefer a meaningful name, then coin a name with generalized, abstract, and symbolic dictionary meaning with expanded applicability for multiple types of business fields – for example, Wise (formerly TransferWise), or Wish (American ecommerce business).
Sound of Music was not scalable business name as it was limited to music and sound stereos due to its restrictive name. So, it was rebranded in 1983 as Best Buy. After rebranding, its operations were expanded to video devices (VCRs) and other home appliances. Although, ‘Best Buy’ is a descriptive and meaningful name, but it is quite better (not best) than the original non-scalable name.
Inclusive brand names are either completely fanciful (meaningless) or having all-encompassing vast meaning.
Example of Wise Brand Name
For example, When TransferWise changed its name to Wise, many folks commented that it should have been better to choose ‘Transfer’ name.
However, their website mentions:
“Today, we’re changing our name from TransferWise to Wise. Our customers now need us for more than money transfers.”
One of the reasons for not rebranding as ‘Transfer’ could be availability of only wise.com domain. However, the transfer is thought reflecting direct meaning and maybe better for their current business field, but it is quite limiting only to money transfers. On the other hand, the word ‘Wise’ is quite vast in scope and applicability. With Wise, they can sell any other product or service such as computers or immigration.
Example of GoodLeap Brand Name
With passage of time, every business may grow, and the owner maybe interested in expanding the scope of business activity to other fields. In such case, a business name with literal meaning limits the ability to expand it to other business arena.
For example, a company Paramount Equity was founded in 2003 in the United States involving mortgage business field.
After some year, its founders became interested in selling solar products and rebranded the name as Paramount Solar in 2009.
However, in 2017, the company started providing solar related loans for homes and therefore as the business field altered, its name was changed to Loanpal, assumingly impressed from the name of PayPal.
In my opinion, the name Loanpal was single-worded great and unique name but the word ‘loan’ in the brand name was limiting its field of operations because it had literal and clear meaning.
In 2021, the company further expanded the scope of operations to home improvement products. According to Bloomberg, its CEO Barnard sees GoodLeap as an Airbnb Inc. or Uber Technologies Inc. of sustainable home improvement.
So, it was necessary to change the company name with some word having vast meaning. Therefore, in 2021, Loanpal was rebranded as GoodLeap as new brand name and a new website domain.
Now imagine how much resources, time and efforts were wasted for changing name of a company several times in its initial 20 years. These resources could have been saved if its founders had branded it with a name having broad meaning or optionally meaningless at all.
GoodLeap is a good brand name in my opinion. It is an abstract, vague, and connotative business name having vast symbolic meaning which can incorporate almost any type of business.
Example of Dunkin’ Donuts
In 2018, the company dropped the word ‘Donuts’ from the brand name to remain relevant after its expanded focus on coffee. Although still it continues to sell doughnuts, but its focus shifted coffee and drinks giving the company more sales.
The word ‘Donuts’ was limiting the perceptive and connotative scope of the company only to doughnuts.
Since 2020, Dunkin has been sold to Inspire Brands, Inc of the United States.
This example also testifies that either completely meaningless or abstract business name should be selected from the very start to save the cost of rebranding.
We can conclude that rebranding is an expensive, time consuming and sometimes fatal exercise for a business. Therefore, we should choose a business name wisely either at the launch of a startup or at the time of first instance of rebranding. We should avoid repeating the same mistakes again while rebranding.
More Resources
Check following helpful resources.
Why Companies Rebrand? Reasons behind Rebranding.
Cost of Rebranding a Business | What is changed during rebranding?
Avoid Repeating the Mistake while Renaming a Brand | Companies that did this Mistake.
18 Inspirational Examples of Companies that Successfully Rebranded.
Explore Branding ideas and tips.
