SHAKING THE TREE ... #28
Changing names from Twitter to X is stupid …
As someone who has learned a few things about branding over the last 20 years, I like to think I have a decent understanding of the significance of a brand's name in shaping its identity and perception among consumers.
A well-established and easily recognized brand name represents years of effort in building recognition, trust, and loyalty. And to paraphrase Warren Buffett, it takes years to build a brand and literally hours to destroy it.
Whenever managers of owners of a company decide to rebrand and change the company name, it’s a move that can go in one of two directions, one of which is good, one of which is bad.
It the move is the latter, it can have unintended consequences and ramifications.
Below, I’m going to outline the potential self-destructive aspects of Elon Musk’s decision to rename Twitter to X.
Bye bye brand equity: Twitter has become something of an iconic brand with a vast user base and global recognition. By changing its name to X, the company loses the brand equity it’s built over the years because X doesn’t mean anything. Users have associated the name Twitter with specific attributes, values, and experiences. The abrupt name change creates marketplace confusion and alienates loyal users who may struggle to connect X with the platform they’ve come to know, like, and trust.
Identity dissociation: With the change of name to X, Twitter's unique identity as a microblogging and social networking platform has vanished, which over time will kill user engagement that in turn will lead to declining interest in the platform.
Inconsistent brand messaging: With the name change to X, the brand's messaging and positioning evaporate. If Twitter does not effectively communicate the reasons behind the rebranding and how that change aligns with the company’s values and vision, Musk and his team will create confusion and undermine consumer trust.
Negative perception: Consumers often view name changes with skepticism and a sudden rebranding is often interpreted either as a sign of instability or as a desperate attempt to distance the brand from past controversies or failures. This negative perception damages the company's reputation and makes consumers wary of its future decisions.
Challenges in SEO and online presence: Changing the name from Twitter to X creates significant challenges in terms of search engine optimization (SEO) and online presence. Twitter has spent years building a strong online presence and SEO rankings associated with its name. The new name X requires significant efforts and investment to gain similar recognition and visibility.
Competitive advantage erosion: Twitter was a well-established player in the social media landscape. The name change to X erodes its competitive advantage by making it less recognizable and distinct from other platforms. More so when the word Tweet has been replaced with the word Post. This move alone will reduce share of mind and increase the platform’s struggle to attract new users.
Legal and copyright issues: Rebranding involves potential legal and copyright issues, especially if the name X is already in use by other companies or entities. Legal battles are time-consuming and costly, diverting valuable resources from other essential aspects of the business.
While rebranding—when it’s done well—can be a powerful and compellingly strategic move under certain circumstances, the decision to change the name from Twitter to X appears self-destructive due to the potential loss of brand equity, identity dissociation, inconsistent messaging, negative perception, SEO challenges, erosion of competitive advantage, and legal issues.
Naturally, Elon musk doesn’t know me from a hole in the wall and there’s no reason why my opinion should bring about any change. That said, I think Musk’s jumped the shark on this one.
As always, thanks for reading.
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P.S. Next time on Shaking the Tree … Why goals need a plan