What are the benefits of choosing the right business name?
In this article, you will learn about what the right name for a business should be, the benefits of a strong name.
Have you noticed that people are more hesitant to buy products manufactured by local enterprises, they think about the price for a long time. But this is not the case when it comes to brands. Most people don't bother buying products from famous brands, even if they are expensive.
Because in the minds of many people, thoughts such as "Brand products are of high quality," "Brand is expensive according to its quality" are deeply formed. Local manufacturers are afraid to believe even if they offer a cheaper product that can easily compete with a well-known brand in terms of quality.
This is not an incomprehensible character or habit of people. This is a condition related to human psychology that has been studied and its results have been confirmed. Let's focus on a few studies without talking about choosing the right name for the business. Then you will understand even more deeply the importance of choosing the right name.
Study 1: In a study by scientists at the California Institute of Technology and Stanford University, participants were given the same wine with different price tags. Participants rated the taste of wine much higher when it was offered at a higher price.
Interestingly, fMRI scans (magnetic resonance imaging) showed that the participants' brains enjoyed and became more active when wine was offered at a truly high price.
Study 2: The higher the value of a product and the higher the risk of purchasing it (for example, expensive appliances or medicines), the more consumers are inclined to pay a "surcharge" for a strong and reliable brand.
Study 3: According to studies conducted among buyers of luxury cosmetic brands, the strength of the brand provides the consumer with hedonic (pleasurable) value.
That is, the buyer believes that feeling different when using the product (status, aesthetic pleasure) beyond its purpose fully justifies the high price.
The results of these studies confirm that your business should be a brand in people's minds, not just a place to sell products. You need to start with the right name so that your business doesn't get overshadowed by brands with a simple name.
A well-chosen name is a powerful tool that will be useful to your business on a permanent basis, not just once:
1. Increases brand awareness
A well-chosen name is quickly and easily remembered by consumers who hear it.
2. Marketing costs are reduced
Easy-to-remember names make it easier for customers to recommend it. People can quickly memorize the brand name and easily recommend it to their acquaintances.
3. Increases brand value
A strong name gives your business a competitive advantage and ensures customer loyalty.
4. Builds trust in the brand
Names that are easy to read, pronounce, and remember quickly are evaluated by consumers as more reliable and valuable even without additional information. People subconsciously perceive names that are easy to understand as safer and more authentic.
5. Options for price adjustment are expanded
When customers evaluate a product, they buy not only its cost but also the emotion its name and brand create. The premium name shifts the product from the "ordinary" category to the "exclusive" category.
For example, if you call your national cuisine a "teahouse," people will expect a lower price from there. If you give it a premium name and visual branding, people will be mentally ready to pay 2-3 times more for the food here.
A professional, attractive, and expensive-sounding name makes the customer think, "The quality here is high, and there probably isn't anything cheap anyway." Even if the price is high, the name involuntarily justifies that price.
If you intentionally make a service sold under the Premium name cheaper, people will start to doubt its quality. That is why such titles give you the right and opportunity to set a high ticket.
What's the perfect name for a business?
The perfect name is a strategic tool that conveys the essence of a product or service to the customer in seconds, is memorable, and brings more revenue to the business. Such a name must meet several important requirements:
1. Make it easy to say and remember
Complex, long, and difficult-to-pronounce names are quickly forgotten and cause difficulty in recommendation. Examples of names that meet this requirement are: Apple, Nike, Apex, EVOS. Example for an unresponsive name: TashkentAgroSanoatTransSavdo (too long and difficult to remember).
2. It must be meaningful or convey emotion
The perfect name conveys what your brand is about or evokes the emotion your customer needs (confidence, speed, premium, convenience). For example, FedEx (Federal Express - express delivery), Starlight (meaning shine for cosmetics or show business).
3. Increases brand value
A strong name gives your business a competitive advantage and ensures customer loyalty.
4. Builds trust in the brand
Names that are easy to read, pronounce, and remember quickly are evaluated by consumers as more reliable and valuable even without additional information. People subconsciously perceive names that are easy to understand as safer and more authentic.
5. Options for price adjustment are expanded
When customers evaluate a product, they buy not only its cost but also the emotion its name and brand create. The premium name shifts the product from the "ordinary" category to the "exclusive" category.
For example, if you call your national cuisine a "teahouse," people will expect a lower price from there. If you give it a premium name and visual branding, people will be mentally ready to pay 2-3 times more for the food here.
A professional, attractive, and expensive-sounding name makes the customer think, "The quality here is high, and there probably isn't anything cheap anyway." Even if the price is high, the name involuntarily justifies that price.
If you intentionally make a service sold under the Premium name cheaper, people will start to doubt its quality. That is why such titles give you the right and opportunity to set a high ticket.
What's the perfect name for a business?
The perfect name is a strategic tool that conveys the essence of a product or service to the customer in seconds, is memorable, and brings more revenue to the business. Such a name must meet several important requirements:
1. Make it easy to say and remember
Complex, long, and difficult-to-pronounce names are quickly forgotten and cause difficulty in recommendation. Examples of names that meet this requirement are: Apple, Nike, Apex, EVOS. Example for an unresponsive name: TashkentAgroSanoatTransSavdo (too long and difficult to remember).
2. It must be meaningful or convey emotion
The perfect name conveys what your brand is about or evokes the emotion your customer needs (confidence, speed, premium, convenience). For example, FedEx (Federal Express - express delivery), Starlight (meaning shine for cosmetics or show business).
3. It is unique and stands out in the market
Your business name must be distinct from competitors in the market. If everyone is adding words like "Eco," "Grand," or "Baraka" to their store, you should choose a name without using these words. To do this, it is recommended to make a list of your competitors and choose a name that is not similar to theirs.
4. Must be flexible with future plans
If you have plans to add other types of products to your business in the future, such as entering the international market, be careful when choosing a name. The perfect name should not limit you to a single product or a single city when your business expands.
For example, you are currently selling shoes. You've given your store a name that suggests this, like "World of Shoes." This name will be uncomfortable if you add outerwear or accessories to your business in the future.
It is no coincidence that Amazon founder Jeff Bezos did not simply name his store "BookOnline." He plans to sell everything in his store in the future. That's why he named his shop after the largest river in the world.
5. To be legally usable
No matter how perfect the name is, if you don't have the rights to use it, it's all for nothing. It is mandatory to check whether the new name has been patented, whether .uz or .com domains are free, and whether they are active on social networks. If someone has already started using the name you selected, you won't be able to use it for your business.
6. The appearance should be pleasant and comfortable
A perfect name must meet the requirements not only verbally but also in writing. That is, it must be suitable for converting into a logo, look beautiful on advertising banners, and fit easily into packaging.
A name that meets these requirements is considered perfect for a business and serves to establish the business as a brand. The transition of a business to the brand level creates a foundation for its expansion, increasing the number of loyal customers, and increasing profits.