How Rebranding Impacts Brand Equity
Rebranding is a powerful strategy for businesses aiming to rejuvenate their market presence or adapt amidst periods of change (acquisitions, new products, new competition, etc.). However, it's a delicate process that requires a deep understanding of brand equity and a clear strategy to assess the impacts before and after rebranding. In this blog, we will explore the influence of rebranding on brand equity, customer perception and loyalty, and the crucial role of market research in measuring the success of a rebranding effort.
What is Brand Equity?
Brand equity refers to the value a brand adds to a product or service. It's an intangible asset that includes brand awareness, perceived quality, brand associations, and brand loyalty. High brand equity means customers are more likely to choose your brand over competitors, even at a higher price.
Assessing Brand Equity Before and After Rebranding
Before embarking on a rebranding journey, it's essential to have a clear picture of your current brand equity. This involves measuring key indicators such as brand awareness, customer perceptions, and loyalty levels. Tools like brand audits, surveys, and focus groups can provide valuable insights.
- Pre-Rebranding Assessment: Conduct a comprehensive brand audit to understand your current brand position. This involves analyzing brand recognition, customer loyalty, and the overall brand image. Surveys and focus groups can help gather qualitative data on customer perceptions and emotional connections with the brand.
- Post-Rebranding Assessment: After rebranding, it's crucial to measure the same indicators to evaluate the impact. Changes in brand awareness, customer sentiment, and loyalty should be closely monitored. Comparing pre- and post-rebranding data helps determine if the rebranding efforts have positively influenced brand equity.
How Rebranding Influences Customer Perception and Loyalty
Rebranding can significantly alter how customers perceive your brand and their loyalty towards it. A few examples:
- Changing Perceptions: A successful rebranding can change outdated or negative perceptions. For instance, if your brand is seen as old-fashioned or irrelevant, a fresh, modern identity can make it more appealing to contemporary audiences. This change can attract new customers and re-engage existing ones.
- Emotional Connection: Brands that evoke positive emotions tend to build stronger connections with customers. Rebranding can help align your brand's visual and verbal identity with the emotions you want to evoke. For example, a rebranding effort focusing on sustainability can attract environmentally conscious consumers.
- Consistency and Trust: A consistent brand image across all touchpoints builds trust. Rebranding provides an opportunity to ensure all brand elements are cohesive and reflect the brand’s core values. This consistency reinforces trust and loyalty among customers.
- Customer Loyalty: Loyalty is a critical component of brand equity. If customers feel that the rebranding aligns with their values and enhances their experience, their loyalty is likely to increase. However, if the rebranding is too drastic or misaligned with customer expectations, it can alienate loyal customers.
The Role of Market Research in Measuring Rebranding Success
Market research is vital in assessing the success of a rebranding effort. It provides objective data and insights that can guide decision-making and help measure outcomes.
- Pre-Launch Research: Before rebranding, conduct thorough market research to understand customer needs, preferences, and perceptions. This can involve surveys, focus groups, and competitor analysis. Understanding what your target audience values and expects can guide the rebranding process.
- Concept Testing: Before fully implementing the new brand identity, test different concepts with a select group of customers. This helps gauge reactions and refine the brand elements before a full-scale launch.
- Post-Launch Evaluation: After launching the refreshed brand, continuous market research is essential. Use surveys, social media analysis, and sales data to measure customer reactions and brand performance. Key metrics to monitor include brand awareness, customer sentiment, and changes in sales or market share.
- Long-Term Tracking: Rebranding impacts may not be immediate. Long-term tracking is necessary to understand the sustained effects on brand equity. Regular brand audits and customer feedback can help ensure the brand remains aligned with customer expectations and market trends.
Degrees on the Rebranding Dial
Not all rebrands are created equally; there are varying degrees to which a company can undertake a rebranding effort. The scope of a rebrand can range from subtle adjustments to a complete overhaul, depending on the company's goals and the challenges it faces.
- Full Company Name Change: This is the most radical form of rebranding and often involves a complete transformation of the company's identity. A name change can signal a significant shift in direction, mission, or ownership. This level of rebranding is usually necessary when the existing name no longer aligns with the company's vision, market, or products. For example, when Andersen Consulting became Accenture, it was more than just a name change; it represented a new strategic direction and positioning in the market.
- Updating Logo and Visual Identity: Sometimes, a company may choose to refresh its visual identity to stay relevant and appealing to its target audience. This can involve redesigning the logo, updating color schemes, typography, and overall brand aesthetics. Such changes are often driven by the need to modernize the brand’s look and feel without altering its core essence. For instance, when Starbucks updated its logo in 2011 by removing the wordmark and focusing on the iconic siren, it was a way to reflect a more streamlined and contemporary image while maintaining brand recognition.
- Revising Positioning and Messaging Strategy: A rebrand can also focus on changing how a company positions itself in the market and communicates with its audience. This involves refining the brand's value proposition, key messages, and tone of voice. Companies might do this to better resonate with their target audience or to differentiate themselves from competitors. An example is Dell Technologies, which tapped Speak! to revitalize its messaging strategy for its OEM Solutions division to communicate clearer value and differentiation.
Understanding the various levels of rebranding helps companies make informed decisions that align with their strategic goals and enhance brand equity without alienating existing customers.
Potential Pitfalls of Rebranding
While rebranding can offer significant benefits, it also carries risks:
- Alienating Loyal Customers: A drastic change can confuse or alienate long-time customers. It's crucial to balance innovation with familiarity.
- Misalignment with Core Values: Rebranding should align with the brand’s core values. If the new brand identity feels inauthentic, it can damage credibility and trust.
- Cost and Resource Intensive: Rebranding is a significant investment in terms of time, money, and resources. It's essential to ensure the potential benefits outweigh the costs.
Download our rebranding checklist to see how a rebrand will impact your budget.
Right Time to Rebrand?
Rebranding can be a powerful tool for enhancing brand equity, but it requires careful planning and execution. By thoroughly assessing brand equity before and after rebranding, understanding how rebranding influences customer perception and loyalty, and leveraging market research, businesses can navigate the complexities of rebranding and achieve lasting success.
Speak! has guided scores of B2B technology clients through a thoughtful and strategic rebranding process — with proven case studies in transforming market presence and driving long-term growth.
Contact us today to have a conversation about how we can help breathe new life into your brand.


