What’s in a Rebrand?
It's no secret that the retail landscape has changed dramatically since social media came into play. From social media marketing to selling through ecommerce channels to changing the way retailers communicate with customers, technology has only amplified the way retailers are able to reach, connect, and target new and returning customers. There is no longer reliance upon existing networks to do business. Social media allowed brands to create interpersonal relationships with consumers on a level never previously experienced in retail.
But with the ever-increasing use of social media, there’s another phenomenon brewing. Gone are the days where brands are free to produce, package, and market however they like; replaced instead by a hyper-intensified version of individuality and changed expectations for customer service. Thirty years ago, the average consumer’s opinion had little repercussion for any brand. Today, a torrent of negative consumer opinions can tank entire companies; Online campaigns can make even the largest of brands, rethink their messaging.
As consumer expectations for what brands “owe” them continues to evolve, to what degree do brands yield to consumer requests versus staying true to their original story?
The Rebrand
It’s no secret that stores rebrand over time. Shifting trends, improving technology, and general changes in consumer patterns fuel rebrands driven by what consumers desire. Some of today’s most well-known brands achieved their glory through extensive rebranding. Take Banana Republic for example. When Banana Republic first opened in the 1980s, they were a novelty safari store before switching over to more contemporary/mainstream fashion to appeal to a larger audience. Today, as 80s/90s clothing trends are coming back into style, Banana Republic is pulling on their safari-roots as a “nod to our utilitarian identity” as inspiration for their new collection.
While not all rebrands include a total overhaul like Banana Republic’s in the late 80s, successful rebranding seem to come down to one key factor: listening to consumers. J-Crew launched a bridal line after learning customers were buying simple sundresses for bridesmaids, McDonald’s shifted to offer a greater variety of healthy options as diets shifted toward pro-healthy, and Walmart spun a new version of their tagline from “Always Low Prices” to “Save Money. Live Better,” making themselves more appealing to shop at for a wider audience.
Inevitably, a brand cannot survive without listening and responding to consumer input. What’s different between the rebrand of today versus 40 years ago comes down to time and space. Forty years ago, consumer behaviors and trends were assessed behind closed doors, with rebranding decisions made in a private setting. Consumer opinions via phone or mail could be responded to in a private, timely manner.
With the rise of social media, much of that privacy has gone away. Social media has allowed brands to run campaigns on a public level while connecting with customers on an intimate level. In the same breath, it has also intensified consumer feedback and expectations. While traditional methods of customer service inquiries still exist such as call centers and CS emails, many consumers turn to social media as a faster platform for reaching their favorite brands. On average, 39% of consumers expect a response within 60 minutes, varying greatly from the average response time from a business, which sits at within 5 hours. Outside of changed expectations for customer service, social media has also revived and strengthened social justice movements. Designed around inclusion, these movements demand real change from retailers whose messaging doesn’t align.
As these inquiries and demands command more public space, while also living on shorter timeline in which change needs to be made, how are retailers responding?
Our conversations around rebranding were born out of our latest walkabout where we observed two retail giants who are currently undergoing rebrands: Victoria’s Secret, a consumer-driven rebrand, and Tiffany’s, a company-driven rebrand.
How has social media played into why these two stores are rebranding? Will their rebrands prove to be fruitful? Or do they risk alienating their existing client base in lieu of pleasing the social-media generation?
In this new series, we will do an in-depth exploration of rebranding: How is rebranding today different from rebranding 40 years ago? What key aspects make a rebrand successful? What causes a rebrand to tank? Follow along as we explore how social media has changed customer-retailer relations and how it has impacted rebranding- whether creating reasons for or being the reason itself - customer voices have never been more powerful.