There are a few risks associated with rebranding that businesses should be aware of before taking the plunge. Firstly, there is the cost – both financially and in terms of time and resources – that can be required to successfully execute a rebrand. There is also the risk that the rebranding effort will not be successful and could actually damage the company’s reputation. Finally, there is always the potential that customers will not respond well to the new brand and could defect to the competition.
However, if a company is considering rebranding, it is likely because the risks of not rebranding – such as being seen as outdated or losing market share to newer, fresher brands – are greater. When done correctly, a rebrand can be a powerful tool to help a business stay relevant and top-of-mind with consumers.