Reasons to Change Your Company Name and Some Tips to Do it Right (Part 1) - The 7-Power Contractor

Reasons to Change Your Company Name and Some Tips to Do it Right (Part 1)

What makes me an expert on when and how to change your company name and/or rebrand?

My family business was originally in just fuel oil heating (think propane heating), and my dad and my uncle were always doing acquisitions because urban renewal had chased our customers out of our service area. When they acquired a new company, they thought people wanted to do business with a company name they were familiar with.

Well, skip many years ahead and my brothers and I are at work alongside my dad (as my uncle had passed away). Anyway, one cold day in February, I went to a Super Bowl party, and I heard a couple of people getting into a heated argument, so naturally I got closer so I could hear what a couple of fellow New Yorkers were arguing about.

One of them said to the other, “I have the best heating company there is.”

The other replied, “You don’t know what you’re talking about. I have the best heating company!”

I asked them both which company they used, and they told me the names. I gulped. Both were using me, but they had no idea we were all one company! Worse, there were four other companies we also owned that were in the same situation!

The next day I told my two brothers and my dad what had happened, and my dad reached for the phone as soon as I stopped talking, so I asked him, “What are you doing?”

My dad replied, “I’m calling a friend who can help us fix this. He is a big-time marketing expert from Madison Ave.”

I asked, “Why would he take your call?”

Dad said, “We were childhood friends. He had a disability and appreciated that I defended him when others would pick on him. His name is Leo.”

A few days later, I was on the phone with Leo Baron, who became my marketing guru. All the phenomenal marketing lessons he taught me have formed the basis of Marketing Power, which is what I’ve taught my 1-1 clients for over 20 years now to great success.

One of the rules he laid out for working with him was that I would need to trust him—especially when he wanted to do something new and bold. This made me raise an eyebrow, but my dad was a great judge of character so I was pretty confident Leo would steer us in the right direction.

At our first meeting he asked, “Do you know the two reasons a company should change its name?” I said I didn’t. He continued. “It’s either to announce that companies are merging or growing in a good way, or to distance itself from trouble. Luckily for you, Al, you’re just getting all your companies married up under one great brand. The name should be something the customers already know. Something the companies have in common.”

I told him the five different names of our companies. Leo wrote them down and played around with different choices. He settled on Oil Services Inc. (OSI, for short) and created a logo for us.

“Now, let’s select a unifying new color for your trucks as we’re not just unifying under one name, we’re using this to create a great rebrand,” he said.

I told him, “The law in New York city requires that fuel oil trucks be green. And not just any color green. Only one of these six colors will do.” I passed him the color chart.

He pointed at one of the six shades and said, “This will do nicely.”

I said, “Leo, that’s the ugliest green on the page! It sticks out like a sore thumb.”

Leo said, “Which is precisely why I picked it.”

I continued my protest. “But…”

Leo said, “Al, I’m not asking you to wear a suit this color. I want your trucks to be visible at a distance and this will do the trick. And when you paint the new OSI logo on your trucks, put it near the back of the truck, not in the center. And tilt it at a 45-degree angle. And you know how your current trucks have phone numbers, radio towers, and boiler installation promotions? From now on, the only thing I want to see on your trucks is your new name and logo. If they’re interested, they’ll find your name in the phone book and call.” (Today, of course, they would just Google it!)

I visualized this bright green truck with the off-center logo, and I figured the staff would think I had lost my mind.

But I trusted Leo.

Once we had the trucks painted (of course these days they’re wrapped), it suddenly looked like we had twice as many trucks on the road. While driving around town, people would see the distinctive green of our trucks with the new logo from blocks away. We were different!

Even my competitors called. They all told me they loved the new look and could I do the same for them!

Now the only name our customers saw was OSI. And OSI became everybody’s favorite heating company at most Super Bowl parties from then on.

Let’s assume you were lucky enough to hire your own Leo and you’ve decided on a new name and logo change for your company or, as in our case, one new name for a bunch of companies.

The next step is to let your customers know about the change and you can and should do this through snail mail and email.

Here’s the key: make sure you put it on your old letterhead and mail it in your old envelopes. If you’re also sending an email blast (and I recommend you do), use your old logo and email signature so it’s something they will recognize. The letter should tell customer a brief story of why you are changing the company name and use the opportunity to highlight some benefits of using your services.

In Part 2 of this article, I’m going to share a sample of this letter and a bunch of great tips for executing a company name change and rebrand successfully.

Doing a company name change in the right way can increase awareness of your brand and reduce confusion in the marketplace, and that’s a very good thing for everyone.

Marketing Power, Planning Power

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