Take a moment to think how often you use product and brand names in your daily life – you check your Facebook and stop by Starbucks in the morning. You brush your teeth with Colgate and set your alarm on your iPhone at night.
With names embedded in every aspect of our daily lives, it’s easy to underestimate the power that they hold. However, in today’s saturated and uber-competitive market, a name plays an essential role in attracting and retaining customers.
When naming your startup, product, or service, find a productive name will help contribute to your future success.
1. Build the cornerstone of your brand
The importance of first impressions cannot be understated in today’s competitive business environment, and your name is the first impression your company will make on potential customers. Your name is your brand’s identity, conveyed in one or two words.
Imagine if Facebook had been named Zuckerberg People Finder instead – the innovative personality that the brand created would have been undermined by a stale name. As a consumer, you may not be as interested in checking your Zuckerberg People Finder daily.
2. Get customers’ attention
Today’s average consumer is overwhelmed with companies and products all vying for their attention and business. A name can allow you to stand out from a sea of competing products to captivate your customer and drive sales. For example, look at the name of these tech companies, and decide which stands out to you most: IBM, DEC, HP, MassComp, Apple.
Your name doesn’t just affect the perception of your brand – it contributes to customers purchasing your product or visiting your shop, even if they don’t realize they are making those snap judgments.
3. Create a bond with your customers
Your name is your first and most lasting connection to your target market. You want your company to connect with your ideal customer. Whether you intend to convey a meaningful idea (Lyft), hint at a user experience (Tinder), foster curiosity (Uber), or convey a lifestyle (Tommy Bahama), your name can make instant connections.
How will your customers feel connected to your name? They may choose it based on emotions, visual appeal, or curiosity. They may also like the idea conveyed by your name or love its elegant sound. Selecting a name that will resonate with your target audience will help to drive them from casual users to loyal brand advocates.
4. Build buzz
Names that are hard to say don’t get discussed. When we can process a piece of information easily, we develop a natural affinity for it over something more challenging to comprehend. If you want to be the talk of the town, ensure people can easily recall and repeat your name.
Ideally, you want your customers to be excited to share and discuss your name with family, friends, and online. A challenging or unappealing name won’t cause your customers to get excited about your brand and product. A name that allows just a little more buzz is a name that helps your brand grow!
5. Drive sales
We’ve all had those moments when we’re desperately trying to recall the name of a business. If we don’t remember it quickly, when we need it, then that company has lost a potential sale.
With the bottom line of your company depending partially on the ability of potential customers to remember your name, the importance of selecting a memorable name is clear. Have a memorable name is likely to affect your bottom line. Even if it’s just a few more downloads or sales, these marginal advantages cannot be ignored.
6. Boost savings
You want your brand to be the first thought of when your audience has a problem to be solved. If your customers have your name at the front of their mind, they’ll be much more likely to return to you again.
Evocative names will help boost your brand’s top of mind awareness, and will likely save you money and effort in the long run. A great name will reduce the budget you will have to dedicate to building repeat customers – simply put, a memorable name will do some of your work by bringing customers to you and helping them remember your from purchase to purchase.
7. Encourage referrals
When a customer is trying to recall the name of your products in a conversation with friends, you want them to remember your name immediately. Organic customer referrals are one of the most rewarding sources of revenue, and creating a remarkable name is an easy way to encourage referrals.
Don’t miss out on more income and brand advocates with a boring or unmemorable name. You don’t want your customers to hesitate while trying to remember your name. During that hesitation, the conversation could move on, causing your company to lose valuable customer referrals.
8. Attract talent
Capture something amazing in your name, and you’ll not only have far greater chances of succeeding and boosting your revenue, but you’ll also be creating something people are excited to join. Let your awesome brand name motivate you every day and let it attract great talent, too.
Beyond the internal benefits to your company, a name that captures something amazing will help attract loyal customers and fosters brand advocates. A name that contributes to fostering brand loyalists has clear positive effects on your bottom line and continued success of your company.
A productive name can help drive referrals, attract talent, capture customer attention, and foster brand loyalty. So, when calculating the RIO of your great name, make same realistic projects based on the small improvements that a name can make to your very concrete business goals. A startup that grows steadily to $1 Million in yearly revenue over four years would recoup a $1,000 investment in a naming project during those four years if that resulting name increased the companies overall revenue by only .05%.