Will A Rebrand Effect Your ROI?
Monday morning, we posted a blog titled Timestamps, which explained the function of logos and their relevance to a business’ life span. The post emphasized that logo redesigns were essential in a company’s evolution because it should accurately reflect the company’s image at the time. Shortly after posting, we were hit with a question:
Sykra’s question started a great conversation here at RUSSO, so we’d like to share our thoughts. Because we’re certain that everyone who considers a logo redesign (or a full-blown rebrand/marketing campaign) questions throughout the decision-making process.
So, will a rebrand increase revenue or have a direct ROI effect on an organization’s bottom line? Well, as you can imagaine, this isn’t a yes or no answer. It’s complicated. Just like the data we came across.
In Josh Orum’s The ROI of Branding, the author makes this very eloquent statement about the reality of measurable success: “[Rebranding] is genuinely transformative and can generate huge returns. They can be hard to measure however, because they’re long-term and indirect returns. It’s not like putting out an ad and immediately seeing increased leads, or tracking conversion rate. But the returns do exist and can be tracked.” So where is the ROI?
“In the end, a well-defined brand enables a company to demand a price premium and can dramatically lower the cost of sales in the long run,” says Orum. “The impact, however, is typically not immediate, can be costly to measure (unless the company already has metrics in place), and the actual return relies on a large number of external factors.
With larger clients in major markets there are annual valuations of the current brand that provide updated/increased value after a rebranding effort. But in smaller markets (like here in Acadiana), the brand value is not documented. So we measure what we can.
Here at RUSSO, we’ve developed a culture of RESULTS. Check out our homepage of brandrusso.com. We’ve created a whole website around quantitative increases from when we undertake a rebrand/campaign. Depending on the scope of work and campaign vehicles, we measure increases in sales, social media followers, growth percentage, attendance, money raised, leads, web traffic, and even decreases in spending.
So in short, any rebranding project can become a significant [and often expensive] undertaking. But the return is far more significant.
Thanks again for the question, Skyra.