Is Your Company on the Verge of a Brand Identity Crisis?

What if your company is suffering from a brand identity crisis and you don’t even know it?

Don’t think that’s possible?

Forbes found three cognitive biases that undermine executives’ strategic decision-making. Biases among business leaders are often the biggest barriers to problem recognition. Studies also show that inconsistent brand messaging erodes credibility with potential customers.

It’s easy for brands to drift off course. The financial toll of “brand drift” is staggering. Yet, you-the C-suite executive or marketing director-have the power to fix it. But, in today’s business world, maintaining brand consistency is more challenging than ever. Different teams and departments can stray off course, fragmenting the business’s image.

And when teams aren’t aligned, it opens the door to a host of problems.

In this post, you’ll learn how to recognize the signs of a brand identity crisis. We’ll also provide a roadmap to help you get your organization back on track.

Can rebranding help resolve a brand identity crisis, or does it worsen the situation?

A rebranding strategy can resolve an identity crisis by realigning the brand with its values and target audience. But if the rebrand is not executed well, it could make the situation worse. We recommend getting professional guidance before making a decision to rebrand.

Signs of a brand identity crisis

The signs of a brand identity crisis are:

• Confused customers

• Shrinking market share

• Disconnected teams

Customer confusion

Consistent messaging leverages the psychological principles of familiarity, trust, and recognition. Uniform communication throughout the customer experience helps create a recognizable identity. As a result, new customers are more likely to trust the company.

When consumers receive conflicting messages, they become hesitant, questioning the company’s values, quality, and principles. The uncertainty can be detrimental. It may even drive them away to competitors who offer clearer, more cohesive messaging.

Companies can avoid a brand identity crisis by examining communication channels and content. This includes a review of all marketing materials and digital content to find discrepancies in tone, style, and messaging.

Loss of market share

A brand identity crisis can cause businesses to lose market share. Competitors with clearer and more consistent branding attract would-be customers. Misalignment makes it easier for competitors to position themselves as better options.

Here are signs of declining market share:

• A noticeable drop in sales figures or revenue.

• Fewer repeat purchases and higher customer churn point to dissatisfaction.

• A rise in complaints and negative reviews often results from misalignment.

• A market analysis usually shows a declining share compared to its competitors.

When your competitors’ market presence grows, it is usually at your brand’s expense.

Internal friction

Misaligned teams are common, but costly. It isn’t unusual for marketing, sales, and service to have their own agendas and priorities. But when teams aren’t on the same page, you lose your competitive edge.

Misalignment within a company causes internal friction that disrupts productivity. So, everyone stays confused and frustrated. This discord hinders progress and creates a tense workplace environment.

Here are some signs of internal issues:

1. Different departments use varying terminologies, key messages, and branding elements. This creates misunderstandings and inefficiencies.

2. Teams may lack clarity about the brand’s mission, vision, and values.

3. Marketing activities are contradictory, with different teams pushing different value propositions.

4. Employees feel demotivated because they don’t understand their role in supporting the brand.

5. Inconsistent customer interactions may show that teams are unsure how to represent the brand.

6. Overlapping tasks and duplicated efforts result from a lack of a coordinated strategy.

Teams that work together can identify and take advantage of opportunities faster. Open communication makes it possible for organizations to leverage diverse perspectives and skills.

The executive’s brand alignment checklist

Executives can use this checklist to realign their brand.

Does leadership exemplify the brand’s values?

Leadership sets the tone for the entire organization. They influence the workplace culture as well as the primary direction of the company. Executives must ask themselves if their actions and decisions line up with the brand. When leaders commit to these values, they set an example for everyone in the organization.

Alignment keeps staff motivated and reinforces the company’s integrity. Companies with this kind of clarity have higher internal and external engagement levels. Leaders who live the values inspire teams to reach their full potential. The result is a ripple effect that enhances the organization’s performance as a whole.

Are leaders communicating the brand vision effectively?

Effective communication from leadership is another area to explore. Leaders must take great care to articulate the vision. They must be sure that every team member understands and aligns with this vision.

By reinforcing the vision, leaders promote a sense of purpose and direction. This motivates employees to contribute to the company’s goals with more enthusiasm. Open lines of communication make team members feel free to offer feedback. They will also remain more connected to the business’s goals.

Communication

Are internal communications consistent with external messaging?

Many of the processes responsible for building a strong brand go unnoticed. One of those processes is communication. A disconnect between internal and public communication can lead to mistrust. This is true for employees and customers alike. Consistent messaging can increase revenue by anywhere from 10% to 20%.

Companies must make sure all messaging reinforces the same core values. Reviewing communication strategies and training staff keeps everyone on the same page.

Is there a clear process for communicating brand updates and changes?

A structured communication process also helps maintain cohesion within an organization. Whether it’s the brand style guidelines, a product launch, or a shift in strategy, everyone needs to know. This includes top management to frontline employees.

Onboarding and training

Do new employees receive training?

New employees should understand the company values, mission, and vision from day one. A comprehensive onboarding process immerses them in the organization’s ethos.

This early engagement helps set the foundation for their time with the company. It encourages them to embrace the core principles that drive success and innovation. As a result, employees are more likely to feel connected to the company and stay motivated.

Are employees updated on brand guidelines?

Training shouldn’t stop at onboarding. Training is an ongoing process that plays a key role in maintaining a strong brand identity. Refreshers keep employees updated on the latest style guidelines, marketing strategies, and messaging.

Marketing and sales

Are marketing and sales teams aligned?

The disconnect between sales and marketing teams is the most common issue we see. Marketing and sales teams must collaborate to develop successful marketing and advertising campaigns. They must also be able to share ideas.

Teams that collaborate deliver better results. Companies with strong sales and marketing alignment achieve a 20% annual growth rate.

Are they using consistent language and visuals?

Consistency in language and visuals will help companies maintain a strong brand identity. It’s essential that marketing and sales materials adhere to the style guidelines. Fonts, color palettes, and messaging tones are a few examples.

It is also critical to present a unified image to customers across all channels (i.e., social media platforms, websites, etc.). Companies should enforce style guidelines at each touchpoint to create higher recall.

Customer service

Do customer service representatives convey the brand’s values?

Customer service representatives are often the first point of contact for customers. So, customer service plays a pivotal role in shaping their perceptions.

Service reps should embody the values in every interaction. To do that, they must be good listeners and deliver the best solution to customers’ problems and needs. A frictionless service experience leads to repeat business and more word-of-mouth referrals.

Do they resolve issues in a way that enhances the brand?

Enable your customer service team to mirror your values in resolutions. Give them the resources they need so they can handle customer concerns effectively. Doing so helps them solve problems efficiently and reinforces trust with customers.

Strategies for brand crisis resolution

When brands find themselves in a crisis, it’s crucial to act fast. Follows these steps to get back on track:

1. Conduct a brand audit: Check the brand’s current positioning, messaging, and visual elements across all platforms. Look for a disconnect between customer perception and the desired brand image. Inconsistencies are the most common cause of misalignement.

2. Clarify core values and purpose: Revisit and reaffirm the company’s mission, vision, and core values. Make sure these elements resonate with both the team and the target audience. Clarity will guide the realignment of brand communications.

3. Realign the brand message and voice: Refine messaging to meet the emotional and functional needs of your target audience. This may include updating taglines, core messages, and tone across all communication channels.

4. Refine customer personas: Make sure the company’s target personas are still relevant and match to the brand’s goals. Revisiting your ideal customer profiles can guide future marketing and communications.

5. Engage and educate teams: Re-educate all employees on the brand’s identity, values, and messaging. Consider training sessions to help everyone understand their role in reinforcing the brand. A unified internal culture strengthens external perception.

6. Update touchpoints: Review and update all touchpoints. Examples are the website, social media, packaging, and customer service protocols. Consistency across these channels enhances brand perception and minimizes confusion.

7. Communicate the change: Address the changes with your audience, especially if misalignment is visible. Share the reasons for the change and what it means for customers. A message from the CEO or a blog post about the rebranding process can foster trust and buy-in.

8. Track and adjust: After implementing changes, track customer feedback. Use analytics, surveys, and sentiment analysis tools to measure success. Continued adjustments will keep business goals and audience needs aligned.

The power of brand audits

A brand audit firm can help companies realign. Here’s how:

• A firm can provide a complete, fair analysis.

• A brand auditor is an expert in the process who knows how to customize an audit to a company’s goals.

• An audit includes market research and benchmarking your company against competitors.

• Audit firms can develop deeper customer insights for your target market.

• Auditors assess employee engagement. Employees are more likely to be honest with an auditor who maintains their anonymity.

• Auditors make recommendations that are relevant to the company’s goals.

• Audit firms offer implementation support to ensure the success of the audit project.

Real-life examples of managing brand misalignment

Three companies corrected a potential brand identity crisis with remarkable success.

Airbnb

In its early days, Airbnb’s messaging and visuals emphasized budget-friendly accommodations. The platform expanded to include more luxurious and unique properties. That’s when a disconnect emerged between the brand’s image and its actual offerings.

To address the issue, Airbnb rebranded in 2014. The company introduced a new logo and a more refined visual identity. Their messaging also shifted. They highlighted the unique experiences available on the platform instead of only affordability. Airbnb’s rebranding realigned the company with its customer base.

“Belonging is the idea that defines Airbnb, but the way we’ve represented Airbnb to the world until now hasn’t fully captured this…”

Airbnb CEO Brian Chesky

Starbucks

In the mid-2000s, Starbucks experienced rapid expansion, which diluted its brand identity. The emphasis shifted from the coffeehouse experience to a broader mass-market appeal. Customer satisfaction declined.

So, Starbucks closed underperforming stores and retrained baristas to focus on quality. They also launched the “Shared Planet” initiative. The campaign highlighted their commitment to ethical sourcing and sustainability. These measures realigned the brand’s premium image and reconnected it with its core values.

Lego

In the late 1990s and early 2000s, Lego ventured into theme parks, clothing lines, and video games. This strategy diverted attention from its primary focus on construction toys. The misalignment resulted in declining sales.

To overcome this challenge, Lego refocused on its core strength-creative building blocks. They also streamlined their product lines. Lego partnered with franchises like Star Wars and Harry Potter. This created themes that appealed to both kids and adults. Lego’s strategic refocusing helped it reclaim its status as a popular toy brand.

These examples illustrate essential strategies for overcoming misalignment:

1. Identify the areas of misalignment. Companies must note any gaps between the brand and customers’ perceptions. You can achieve this by doing three things. First, conduct market research to understand customer sentiment. Then, analyze customer feedback. And finally, assess your internal communications.

2. Redefine the brand identity. With the insights you’ve gained so far, revisit your core values, audience, and unique value. This may involve rebranding efforts, revising messaging, or adjusting product and service offerings.

3. Align internal and external communication. It’s vital to ensure all communications are consistent with the redefined identity. Examples include employee training, marketing materials, and customer interactions.

Does your brand have an identity crisis?

Alignment prevents a brand identity crisis and ensures long-term success. The checklist we have provided can help executives assess and improve their organizations.

Are you ready to take the next step? Download our checklist template. Then, consult with our experts for personalized guidance. You’re only one call away from elevating your company to new heights.