Condensing your company’s name? To help you avoid these five pitfalls

September 24, 2024

Condensing your company’s name? To help you avoid these five pitfalls

If you want people to remember and recognize your brand, shortening its name is a smart strategy. However, it’s important to consider the potential risks involved. A brand’s abbreviation strategy could be the deciding factor in whether or not your company succeeds. Think long and hard about these major pitfalls to avoid if you want your brand’s credibility and popularity to remain intact before you make this crucial decision.

1. Making the acronym too complicated

Brand name abbreviations should be as simple as possible. Your audience and their ability to remember your brand could take a hit if it’s too complicated. A brand name can be simplified and made more memorable by using an abbreviation. But some brands make it so hard to remember or say that it’s unpronounceable.

One institution that uses an acronym is Southern New Hampshire University, which goes by the initials SNHU. The name is short, yet it sounds a little long when spoken aloud. Simplifying it to something like “SNH” or shortening it to something more easily pronounceable, like “SoNu,” would be preferable. Initialisms or acronyms that are longer than three letters are likely excessive, unless your brand has already achieved tremendous success.

A business changed its name from COPT Défense Properties to Corporate Office Properties Trust not long ago. In order to better communicate their investment plan to investors and fit in with the strategy, the company wanted to alter its name. “Defense Properties” adds complexity and confusion to the already recognizable and relatively easy-to-pronounce “COPT” acronym.

Your brand’s identity will remain strong if the acronym is simple and easy to recall.

2. Picking initials or acronyms that imply negativity

Think about what the resultant acronym or initialism could mean. A brand’s reputation and consumer base might take a hit if an acronym is used carelessly and connotes something bad or unsuitable. The incorrect string of letters could ruin your brand’s reputation and perhaps lose you sales, as roughly 70% of customers prefer to do business with trustworthy brands.

The initials WTF, which are often used to express shock or astonishment, were used by the World Taekwondo Federation. In 2017, the organization changed its name to World Taekwondo, using the more unbiased initials WT, after realizing this was a problem.

3. Dissolving Company Identity

Before you think about shortening your brand name, be sure it conveys the same meaning as the longer version. Brand awareness and audience connection can be lost when an acronym or abbreviation becomes too distant from its original form.

National Geographic is one possible example that I can think of. Imagine for a second that this publishing house decided to shorten its name to NG. Despite its length, National Geographic is an influential name in the fields of exploration and education; shortening it would diminish its significance.

Consistency and recognition are also aided by sticking to a well-known name. Brands who maintain consistency in their branding might see a 33% increase in sales; therefore, it may not be prudent to change to a shorter, less known moniker.

Ignoring the people watching

Think about how people will respond to the new acronym before you use it. Misunderstandings or alienation might result from abbreviating a brand name before considering the audience’s potential feelings.

Cultural and linguistic variations must also be taken into account. Distinct locations may have distinct perceptions of a brand name depending on the abbreviation used. A well-received abbreviation of a brand name in one region could have quite different connotations in another.

It is important to ask your target audience for feedback. The most important thing is to listen to what they have to say, because that will ensure your brand stays relatable.

5. Facing problems related to trademark law

There may be trademark and legal complications if any form of abbreviation is used, even initials. Make sure the chosen acronym isn’t already in use for anything related to your goods or services by checking trademark databases.

A recent disagreement arose between Lubbock Christian University and Louisiana Christian University about the usage of the acronym LCU. Despite being separate organizations, the two have a common acronym. Legal fees in such cases can be rather expensive.

Be sure to research any potential trademark conflicts with the acronym you choose, even if no one has done so yet. In any case, consumers may be confused by your abbreviated name. Importantly, this will help keep customers from “passing off,” the phenomenon wherein people mistake one brand for another just because of the names they sound similar. You need a one-of-a-kind acronym to set your brand apart from the competition.

Successfully shortening your brand name: a guide

Brands chose to shorten their names for a reason, so keep that in mind. If they want to make the change for simpler recall, to modernize their image, or to appeal to a worldwide audience, there must be a strong cause. Think long and hard about it before you shorten a brand name. The dangers could exceed the advantages if this is not addressed.

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