You shouldn’t take the decision to rebrand lightly. It’s a process that takes time, resources, and dedication. But if the time is right, it also represents an incredibly lucrative return on investment.

Here are the top five reasons why it may be time for your organization to invest in a rebrand:

Reason 1: New product offering

Have you made a significant addition to your product line? Then it’s time to rebrand. Introducing a new service or product that meets market demand and will carry your business forward is a signal that your brand needs to evolve to support this new offering. If it’s in addition to (rather than a replacement of) an existing product line, it’s time to create a brand family. Don’t just slap on a new product without explaining how it relates to your current line. Your brand family needs to grow and evolve to represent the different products’ strengths and similarities.

Reason 2: Mission change

Maybe you don’t have a new product offering, but you have changed how you do business. As a result, the brand is outdated and misaligned. This triggers the need for change and repositioning to match the services offered today.

For example, BMW has always sold cars, and aside from the constant evolution of new car features, its automotive product line doesn’t represent a significant change. However, their mission did change when the company reinvented the car-buying experience to be more engaging rather than merely focusing on the product-related benefits. And their brand evolved to represent that change. The new brand reflects that mission and differentiates BMW in the marketplace.

Reason 3: Your customer has changed, and so should you

When you created your brand, you designed it to attract a particular customer. Now think about the customers you serve today. Are they the same?

Odds are, the marketplace has changed. Customer needs are drastically different than they were five or ten years ago. And there will be a consistent decline in revenue for brands that haven’t kept up with the times. In other words, your brand shouldn’t be the only one wearing bell-bottom jeans at the party. If your customers have evolved, so should you.

Reason 4:  The competition is winning

Younger companies are energized and hungry. And if you’re stagnant, they will eat your lunch. But, you can defend your turf through better branding.

If you’re losing to the competition, it’s because you have no brand equity. Brand equity is the commercial value of a brand. According to AdAge, it’s “essentially how many and how much people like brands and are loyal to them.” Does your audience recognize your brand? Does it spark positive emotions? To stay relevant, it needs to.

Reason 5: Confusion

Mergers, acquisitions, and spin-offs can cause confusion internally as employees worry about their job security and the future with the brand. Unless addressed head-on with a rebrand, this sense of confusion and insecurity will resonate outside of the company. Embrace the new phase of the company and instill confidence in the future with a bold new rebrand. It will bolster your image, inside and out.

Can you identify with one of these reasons to rebrand? The experts at id8 are here to help. Our understanding of user behavior and brand strategy combined with marketing expertise enables our team to create transformative brands and connect with your audience in a meaningful way.