Summary: In this comprehensive, data-driven guide to business naming, we presented 10 key questions to a representative audience of American consumers and venture capitalists. We gained key insights into which types of name are most interesting to customers, and most appeal to investors. We also discovered how consumers prioritize competing qualities of name, alongside common naming mistakes. 

Key takeaways:

• Single English words generate the most curiosity about your brand.
• Consumers want names to be unique and creative.
• Consumers said the most common naming mistake they see is that names aren’t memorable, while investors said that the most common mistake was that names are too similar to other brands in that industry.
• 72% of consumers say that they build a stronger connection to a brand when name aligns with mission and values.
• 77% of consumers say that difficult-to-spell names impact brand credibility.
• 82% of investors say difficult-to-spell names make it harder to secure funding.
• Puns and metaphors are seen as the most interesting names.

Objective: A business’s name is its chance to make a strong first impression, on both customers and potential investors. To build a resource for a data-driven naming strategy, we explored consumer perception of name types and the impact of names on securing venture capital funding. 

Audience: Our consumer perception questions were presented to a representative panel of American consumers aged 18 – 64.

We chose an audience of private equity investors, venture capitalists, and angel investors for questions concerning how business name assists in securing funding.

Our Results

Building Interest Through Name Type

As a first impression, your name has to count. Does it inspire your customers to learn more about your brand, or does it elude memory, making your forgettable? Understanding which name types generate the most interest and curiosity in your brand leads you to a powerful name.

• Single English words generate the most curiosity about your brand.

Rank the following name types based on how curious they make you about a brand. 1 is most curious, 5 is least curious.

Qualities of a Name

Names have many qualities, from simplicity and creativity to the semantic connotations and emotions they evoke. One challenge for businesses and startups is knowing which qualities should be prioritized to create a name that customers want to engage with.

Rank the following aspects of a name based on their importance in drawing you to engage with a brand. 1 is the most important, and 5 is the least important.

Common Naming Mistakes

Avoiding common naming mistakes is crucial for new brands and businesses. Understanding which mistakes consumers see most often allows brands to stand out from the crowd, while investors can guide brands away from mistakes that compromise gaining funding for your startup

• Consumers said the most common naming mistake they see is that names aren’t memorable.
• Investors said the most common mistake was that names were too similar to other brands in that industry.

Consumers: What is the most common naming mistake you see in brand names?

Investors: What is the most common naming mistake you see in brand names?

Unique Names

Unique names differentiate you from your competitors and provide a platform for a powerful, inimitable brand.

• 74% of consumers say it’s important for a name to be unique.

How important is it for a business name to be unique when you’re choosing to engage with a brand?

Aligning Name with Mission and Values 

Having a social or environmental mission at the heart of your business can make a powerful impact on customers. Some brands, like Patagonia or Beyond Meat, align their name with their purpose; others such as Warby Parker and Ben & Jerry’s have names that do not refer to their values. We found that consumers build stronger connections with brands whose name reflects their mission.

• 72% of consumers say that they build a stronger connection to a brand when name aligns with mission and values.

How much do you agree with the following statement: I’m more likely to build a connection with a brand when the business name aligns with their identity, missions and values.

The Impact of Spelling

We found that 74% of consumers say it’s important for a name to be unique, but with over 30 million businesses in the United States, coming up with a brand-new name is no easy feat. To do so, many startups reach for alternative spellings, a strong strategy but one which must be employed with caution to ensure names are still easy to spell for customers.

• 77% of consumers say that difficult-to-spell names impact brand credibility. 35% say it’s very or extremely impactful.
• 82% of investors say difficult-to-spell names make it harder to secure funding.

Consumers: How much does a difficult-to-spell brand name impact your perception of a brand’s credibility?

Investors: How much does a difficult-to-spell name hurt a startup in securing venture capital funding?

Perception of Name Type

From a single word to a play on words, there are many name types you can use to connect with your customers. Understanding how your audience perceives certain types of names can influence your choice, and lead you to a name that interests and inspires your customers and differentiates you from competitors.

• Single English words are seen as the least ‘overused’.
• Puns, metaphors and poetic names are seen as the most interesting.
• Misspelled words are often seen as uninspiring.
• Made-up or abstract words are seen as the most different.

How would you describe each of the following naming types?

How would you describe each of the following naming types?

Creative vs. Descriptive Names

Names can be either creative, utilizing imagery and metaphor or unique letter combinations to inspire, or descriptive, giving your audience a fast track to understanding your product or service. Balancing these two criteria is a major challenge for new brands.

• 53% prefer names to blend descriptive and creative elements.
• Creative names are more popular than descriptive names.

When choosing among brands, do you prefer a name that describes the product/service or a more creative name?

Conclusion

We found that single English words generate the most curiosity about your brand, while hard-to-spell names damage trust and credibility. The good news for brands is that multiple types of names were described as interesting and different, giving you plenty of chances to stand out.

In today’s digital world, every brand needs an online presence. Choosing your name and finding your brand’s domain name should go hand in hand, to present a united front and coherent brand identity. So, armed with data-driven ideas about what your business name should be, explore our core research on domain names (coming soon) to find the perfect choice.

If you’re interested in digging deeper into our findings, or asking your own questions on consumer, branding and worklife topics, contact thom@atomradar.com to learn more.

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About The Author

Grant Polachek

Grant Polachek is Chief Growth Officer at Atom.com. With 15 years experience in marketing, he has run market research projects for brands like Dell, Hilton, and Alibaba. Grant has expertise in a range of topics including domain names, naming and digital marketing.

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