In the business world, every detail counts. From product quality to customer service to marketing strategies, everything plays a crucial role in the success or failure of a company. However, there is one element that is often underestimated and that can have a significant impact on the fate of a business: the name of the brand or company.
Naming, or the choice of a brand or company name , is a fundamental aspect of branding strategies. A well-chosen name can be a powerful asset for a company, while a poorly chosen name can have negative consequences. In this regard, different studies have shed light on the importance of choosing an appropriate name for a business . According to research conducted by YouGov, 65% of consumers consider the name of a company to be a determining factor when deciding whether or not to purchase a product. This data reveals the magnitude of the impact that a name can have on consumer perception and, therefore, on a company's sales.
But the influence of a name goes beyond first impressions. An analysis conducted by croatia telegram lead Invespcro found that companies with poorly chosen names are 33% more likely to fail within the first five years of life . This alarming statistic underlines the importance of carefully selecting a company name from the start, as it can be a decisive factor in its long-term survival.
Choosing the right name not only affects brand perception, but also has a direct impact on sales.
A study by Shopify found that products with memorable names are 26% more likely to be sold. This finding highlights the importance of memorability in the process of choosing a name, as it can directly translate into increased sales and, consequently, business success.
The history of the business world is littered with examples that illustrate the power of a name and the consequences of choosing it poorly. One of the most notorious cases is that of “New Coke,” a failed attempt by Coca-Cola to update its image in 1985. The name change resulted in massive consumer backlash, forcing the company to revert to the original name within months. This mistake cost Coca-Cola over $4 billion in losses, demonstrating how costly it can be to underestimate the value of an established name. Another illustrative example is that of “Ayds Diet Candy,” a product launched in the 1970s. The name, which unfortunately resembled the word “AIDS,” sparked an immediate backlash. As a result, the company experienced a 70% drop in sales, eventually forcing them to rename the product. This case highlights the importance of considering the potential negative connotations or unwanted associations that a name may have.