The ups and downs of the business name game - Yell report highlights importance of a strong business name for SMEs - 28 March 2006
Forget a snazzy logo or stylish shop front – a new report from Yell, publisher of Yellow Pages directories, highlights just how important a robust business name is to attract consumer interest. Yet despite its importance, more than a quarter of small and medium-sized businesses (26 per cent) give little thought to the process and stick with the first name they think of.Yell’s ‘What’s In a Name?’ report - see the download below - combines the findings of a survey of 630 SMEs from Yellow Pages advertiser database and a poll of 2,600 consumers, as well as insights from Dr Frank Monaghan, a linguistics expert at the Open University. The report highlights a worrying gap in attitude between these two audiences towards the importance of the right name. It also provides a useful tool for start-ups, by revealing the most common types of business name and how they are perceived by consumers.
Label Junkies
Almost half of SMEs strongly believe that a business name doesn’t matter as long as the service is good, and nearly a third (29 per cent) said that a business name is the least important factor in attracting customers. Yet with 11 per cent of consumers saying they would be unlikely to use a company if they didn’t like the name, SMEs could potentially miss out on custom by making the wrong choice.
No Regrets?
It’s clearly worth investing the thinking time up front, as feedback from SMEs reveals the spontaneous, knee-jerk approach to naming a business can sometimes be followed by regret. More than a third (37 per cent) admit they would opt for something with more impact if they had had the opportunity to change their existing name. And more than one in eight have actually changed their name from that chosen at start up (13 per cent).
The Six Signs of Trading
Linguistics expert Frank Monaghan conducted an analysis of 1,000 randomly selected Yellow Pages advertisers and identified six business name types:
- Family Focus (e.g. Bloggs and Son): The most common type found in 33 per cent of businesses. Designed to create instant trust and show expertise gained through years of personal experience.
- Think and Link: Businesses that use a single word to create a positive connotation for the business and its services (e.g. Lip Smacking Catering Company), found in 19 per cent of businesses.
- Geo-name: These businesses speak directly to locals with a name that screams ‘on your doorstep’ (e.g. Clapham Plastering). Found in 16 per cent of businesses.
- Straight to the Point: Nine per cent of businesses opted for a name that directly highlights its business offering (i.e The Towbar Shop)
- Pun-ter: Nine per cent of businesses have a name that includes a pun and aims to put consumers at ease, raise a smile and stick in the memory (i.e Pine & Dandy).
- Obscure: Just three per cent of businesses have a name with no obvious connection or association with the actual business operation (e.g. Neon Lights Hairdressing).
What works?
When it comes to consumer preference, 42 per cent of respondents are most attracted to a name featuring a family name or ‘and son’ – the most common type of business name. Interestingly, in the wake of the continued threat of the homogenisation of British high streets, a fifth of respondents warm towards ‘Geo-names’ that indicate a business is a local company.
Richard Duggleby, head of external relations at Yell, publisher of Yellow Pages directories, said: “This research shows that when SMEs are devising a name that will give them commercial cut through, it shouldn’t be a decision that is taken too lightly, as it could have repercussions for the health and survival of the business.”
Dr Frank Monaghan said: “Customers can pick up the subtlest of linguistic cues from the name hanging over the shop door or the listing in their local directory and these can ultimately determine whether they will want to talk to you, or your competition. Starting up a business is similar on some aspects to naming a baby - so treat the whole naming process as you would with a new arrival. The name is probably something that they are going to be stuck with so you will want to give them the best start in life.”
