Mergers have become a common occurrence in the business world. They are often an opportunity to combine resources, expand within the market and offer new potential for growth. However, even with the excitement of a merger, multiple studies have shown that still over 50% of mergers fail. This is largely due to the challenge of integrating two distinct brands into one unified identity.
At Verinext, we faced our unique merger with a measured and thoughtful process for establishing our new brand. In fact, we found that our strategic rebranding actually helped our new organization navigate the overall transition and lay solid groundwork for our future success. Here is why and how we did it…
- Unifying Two Identities
A crucial step in harmonizing disparate brand images, values and messaging is rebranding post-merger. It should consolidate the identities of the merging businesses. This process offers a chance to craft a unified brand identity that showcases the collective strengths of both organizations. Verinext experienced this over a year ago when it combined the brand equities of our predecessor organizations, Anexinet and Veristor.
Two renowned IT solution providers, Anexinet and Veristor, announced their merger integrating teams and technology practices to create a new IT solution provider powerhouse. Our challenge was how to build on the established brand equity each had created over their combined decades of business. The brand strength of each company’s name held trust, credibility and value in their individual markets. As a newly merged organization, the company needed to transition this value into a fresh new brand while harking back on its individual heritage.
The unification of two identities proved to be more powerful than the simple absorption of another. That said, when merging identities it’s essential to consider cohesion, consistency and communication across all audiences to ensure a successful transition.
- Communicating the Merger to Customers
Effective communication with customers of a merger is crucial for maintaining trust and mitigating concerns. Research shows that transparent communication throughout the process can increase customer retention rates by 30%. Addressing uncertainty clearly and timely, such as highlighting the benefits of the merger, like expanded offerings, demonstrates respect for customers and rallies support.
Throughout Verinext’s merger, we reached our customers through media placements, direct email marketing and social media. We worked diligently to promote a regular cadence of blogs, educational content and thought leadership articles. This not only helped communicate the change to customers but also executed to build visibility, as well as excitement, for our new brand.
- Creating a Stronger Market Presence
Rebranding after a merger can also help create a stronger market presence for the newly merged company. It is common knowledge that mergers can boost the business’ market presence by pooling resources and expertise. Verinext’s merger has become a core element to the dramatic growth and expansion as a true IT solution provider powerhouse. Not only are we now able to offer more services, but through rebranding efforts, we have reached an entirely new pool of customers. When rebranding, our team executed media placements that reached 24 million people. On top of that, the company’s 35K social media followers received engaging social content showcasing the new brand identity. We achieved new economies of scale and scope by combining strengths and capabilities under one new brand.
- Cultivating Employee Engagement
Rebranding post-merger allows for a crucial step, employee engagement. For successful integration and organizational performance, employees must be on board and an active participant in the transition. According to a study by Gallup, companies with highly engaged employees experience a 17% increase in productivity. Through rebranding, employees are provided a platform to contribute to and embrace the unified vision and culture. This will foster a sense of belonging and purpose.
During our naming process, Verinext worked hard to engage both businesses’ employees to help smooth the transition. We surveyed employees on the new name. What we found was that the majority wanted to continue to leverage the “veri” from the Veristor brand, which is the Latin root for truth, a core pillar of our combined company’s values. This was combined with “next” to demonstrate how the company uniquely helps customers prepare for the future digital needs of business. It also gave a nice nod to the tradition of the Anexinet name. Once the Verinext name was selected, the trademark process consumed multiple months. By the time it cleared, we were ready to proceed as a fully unified organization.
At Verinext, we were able to effectively integrate brand identities, and their intrinsic equity, from our preceding organizations, creating a natural brand transition without losing the value in the original companies. Rebranding after a merger is incredibly important for companies seeking to create a cohesive identity. Through this process, companies can leverage combined strengths to drive innovation and growth and with transparent communication to customers and employees, a rebranding can create a stronger, more powerful organization. At Verinext, we are living proof that this is true.
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