flux branding

Why Do Companies Rebrand?

6 Tell-Tale Signs You Need an Update

You’re thinking about embarking on a rebrand, and you don’t want to rush into things. So you’re wondering, “Why do companies rebrand?” Taking your rebrand seriously is good because a rebrand will transform how your employees, customers, and competitors see you.

An ecommerce CEO pondering on: Why would a business want to rebrand?

The journey of a rebrand can be difficult. There are problems to solve, interviews and research to conduct, and a million and one details to take care of.

And when done strategically, the results of that work can send your market value and brand equity skyrocketing.

So how do you know if it’s time to rebrand?

As an experienced branding agency in Los Angeles, we find there are 6 key indicators you can use to measure how effective a rebrand will be for your company.


Why do companies rebrand?

There are a variety of occasions that might spur a company to rebrand. At first glance, these can all seem disconnected, almost random. However, there are really 6 key moments for rebranding when you dig deeper into the question, “Why do companies rebrand?”

A well-done, strategic rebrand builds and strengthens companies. During certain times in a company’s life, these benefits of branding are especially important.

These 6 examples are the most common, so let’s dive into each of them a bit more.


1. To build team spirit with an internal rebrand

Happy rebranding team in LA coming up with great ideas while brainstorming

Employee retention might not be the first thing to jump to mind when asking yourself, “Why do companies rebrand?” That’s a problem, because internal branding can make a huge difference in whether your top talent stays or leaves. (Or accepts your job offer in the first place.)

Branding exists to form a strong emotional connection. With your customers, yes, but also with your employees. If your employees don’t believe in your company, even the best offer, product, and external branding in the world won’t make a difference.

When your team doesn’t believe in you as a brand, they can’t follow through on the promises that your marketing makes. 

When you dedicate resources to creating company culture, your team does believe in you, and they become your fiercest advocates.

This means they’ll create a seamless customer experience, but it doesn’t stop there. Your team will create stronger connections with each other and carry their passion for your brand outside the workplace. They’ll gush about you to their family and friends, attracting not only new customers but new employees.

The short of it: 

Why do companies rebrand internally? To attract and retain the most dedicated brand advocates – their own team.


2. To give a launch extra momentum

Groveland postcards created by Flux Branding

The Groveland Rebranding

You’re launching a new product or product line, and you need to be certain it makes a splash. So why do companies rebrand while launching? To help a new product launch gain the momentum it needs to stand out in a crowd.

Rebranding takes a massive effort. Why would a business want to rebrand during all the chaos of a new product launch?

Simply put, sometimes you just can’t afford not to.

Balancing product marketing vs. brand marketing can be difficult. Which one needs more resources during a launch? Your team can find itself caught in endless circles trying to determine where the bulk of your time, energy, and effort should go.

What if your product marketing and brand marketing could work together instead?

Working with an experienced rebranding agency means that your product marketing and brand marketing could build each other’s momentum instead of competing for resources. It ensures that your overall brand supports your new product, meaning that your new product won’t just draw attention once– it will build you a loyal audience that keeps coming back for more.

From a customer-facing standpoint, a rebrand during a launch builds excitement and changes the way they see your company. Your company is telling them – on every level and with every opportunity – that this launch is interesting, exciting, and a big deal that deserves their attention.

The short of it: 

Companies embarking on a big launch rebrand to build excitement about the new addition, and ensure their overall brand is aligned with their latest offering. When your product marketing and brand marketing are collaborating – rather than competing with each other for resources – they can exponentially increase the success of a launch and parlay it into long term returns.


3. To communicate your values during a company crisis

Crises happen to every company at some point in its life. They aren’t necessarily an indication of failure, but they do require fast action. During a company crisis, customers start to form negative associations with your brand.

Precisely what those associations are will depend on what kind of crisis you’re dealing with.

Your customers might start to see your company as irresponsible, dishonest, unethical, or even financially undependable. So why do companies rebrand during a crisis like this? Won’t it seem to deflect from the problem?

When rebranding due to a crisis is rushed, directionless, or poorly executed, yes. Customers see through a rebrand that’s just there to distract in a snap.

But rebranding doesn’t have to be any of those things. When your rebrand is deliberate, well-executed, and communicates a clear shift in company values, you can start to rebuild genuine trust in your brand.

You may already have some form of brand reputation strategy in place to help with damage control. If you don’t, your rebranding agency will help you create one. During a rebrand, creating this kind of strategy is especially important since it will allow you to handle crises internally before they spiral out of control.

The short of it:

Why do companies rebrand during a crisis? Some do it to deflect from dealing with the real issue, but rebranding can do so much more. You can rebuild customer trust with a thoughtful, intentional rebrand that communicates your company’s real values.


4. To strengthen a merger, acquisition, or sale

Two entrepreneurs shaking hands upon agreeing on the best real estate acquisition rebranding process

Bringing two companies together is an intense process. You’re dealing with a lot of change, sometimes both internally and externally.

So why would a business want to rebrand on top of all the change that’s already happening?

Rebranding during a merger, acquisition, or sale is a strong, strategic move. Many would argue it is also essential. Rather than letting the change happen to you, with very little control or direction, you take the bull by the horns. YOU guide the changes that your company goes through.

Your guidance will provide a sense of security and confidence to both teams, as well as your customers. There’s no wondering which protocols, slogans, values, or visuals will stay and which will leave. Your customers and employees understand exactly what’s happening.

It will also unite your formerly two or three (or more) teams as one.

Your rebranding checklist will always include internal communications, press releases, and marketing. During a merger, acquisition, or sale, these become especially important since you need to keep everyone on the same page and draw a distinct line from your old brand to your new one.

Here at Flux, we call this a brand transformation– going from now to next.

The short of it:

Why do companies rebrand during mergers, acquisitions, and sales? Change during this process is inevitable. The more deliberately you can channel that change, the more likely you’ll be to emerge stronger than ever.


5. To update and refresh your current brand

Sometimes, there’s a simple answer to the question, “Why do companies rebrand?” You don’t want to look like you’re stuck in the 90’s (and not in the trendy “what’s old is new again” sort of way)!

Visual trends come and go.

Your company grows and evolves.

And even if you aren’t undergoing a major launch, chances are good that your company offers different products now than it did 10 or 20 or 30 years ago.

That means there could be a gap between how your customer sees you and how your brand exists in the here and now. A brand refresh can close that gap.

When you refresh your brand, you may find that you also attract new customers who didn’t notice your company before.

Updating a brand can be tricky. You want to attract new customers without alienating loyal ones and communicate change without looking like a different company. Your rebranding agency can help you strike the delicate balance of a brand refresh.

The short of it:

If you haven’t touched your brand in awhile and your look doesn’t reflect who you are anymore, it’s time for an update. A brand refresh can help you stand out to new customers and close any gaps in how your current customers see you.


6. To strategically begin a competitive attack

Rakuten Super Logistics landing pages with new look and voice developed by Flux rebranding agency

Rakuten Super Logistics Rebranding

You used to be at the very top, the #1 choice. What happened?

Copycats and new kids on the block can be a nightmare for established businesses. But they don’t have to be. Rebranding can be the first stage in a competitive attack to help you take back your market shares.

Why would a business want to rebrand as part of a competitive attack? Would you be risking your current position? Not necessarily.

Strategic rebrands can help you carve out a distinct place for yourself among competitors – or reinforce your current place.

Your rebrand can take you from being seen as a generalist in your category to a specialist. From simply well-made to a position as a luxury brand. From well-informed to an expert.

During a competitive attack, customer perception and desires are everything.

When you’re considering how to rebrand your business, make sure that customer research and market research is front-and-center. (At Flux, we consider this stage so critical that it’s the very first phase of working with us under our IDEA Method.)

The short of it:

Why do companies rebrand as part of a competitive attack? If you’re losing market share, your customers don’t see your company as the leader of your category. A rebrand that listens closely to your customers strengthens their perception of you and puts you right back where you belong – on top.


Is it time for your rebrand?

We’ve said it before and we’ll say it again: your brand is who you are as a company.

Businesses are living, changing entities, which means that your brand will need to evolve over time. Rebranding strengthens and builds your company, aligning how people see you with who you are right now.

Flux is an experienced branding agency in Los Angeles. With more than two decades in the industry, we can help your company solve any branding problem. Reach out to see the difference strategic rebranding can make.

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