We’ve been helping companies refresh, reposition, and revitalize their brands for over 35 years and have come to know a thing or two about the art and science behind it. (We’ve also built numerous brands from the ground up. But let’s save that for another blog.) Rebranding is one of the most challenging and risky moves a company can make. When done right, it can revitalize a brand, attract new audiences, and drive exponential growth and change culture literally overnight. But when done poorly, it can erode brand equity, confuse customers, and lead to significant financial losses. One year into Twitter’s transformation into “X” is a case study in how rebranding can go wrong and why CEOs and CMOs should think twice before pursuing change for its own sake.

The Real Costs of Rebranding

The decision to change Twitter’s name to “X” wasn’t just a cosmetic update—it was a complete overhaul of a brand that had been carefully cultivated over more than a decade. According to estimates, rebranding a company of Twitter’s size can cost anywhere from $1 million to $30 million, depending on the extent of the changes and the scope of the rollout. This includes everything from redesigning visual and verbal identity and updating brand marketing and communications materials to signage, wayfinding systems, reconfiguring digital assets and retraining employees as to new standards.

But the financial costs are just the tip of the iceberg. Twitter had built an incredibly strong brand identity. The blue bird logo, the term “tweet,” and the very name “Twitter” were all deeply ingrained in the public consciousness. By abandoning these elements, the company has essentially thrown away years of brand equity that can’t be easily regained.

Loss of Brand Equity and Recognition

At BOLTGROUP, we define brand equity as “the commercial value a brand provides to a firm through its effects on the attitudes and behaviors of its stakeholders.” Twitter had amassed significant brand equity over the years, not just in the form of financial value, but also in cultural relevance. Twitter was synonymous with real-time communication, breaking news, and public discourse. It had become part of the global vernacular.

By rebranding to “X”, Twitter has not only lost its unique identity, but also sacrificed its brand recognition. The change has left many users and potential users confused and disconnected from the platform. This is particularly damaging in a digital landscape where attention spans are short and brand recognition is critical for user retention and growth.

A recent survey found that 71% of consumers are more likely to buy from a brand they recognize¹. By abandoning its iconic brand elements, Twitter is gambling with a key driver of its success. In fact, according to an article by Richard White in Omnisend², a year after the rebrand, 89% of brands still refer to the platform as Twitter, not “X,” indicating just how deeply rooted the original brand remains in the public consciousness.

Moreover, the financial repercussions have been severe. The value of “X” is reportedly down some 71% from the purchase price of Twitter, as noted by Forbes and The Guardian. This staggering loss in value underscores the dangers of rebranding without a clear strategic vision.

Reputation and Trust: The Intangibles

Beyond the measurable financial and equity losses, Twitter’s rebranding has also had a negative impact on its reputation. The move has been widely criticized as impulsive and unnecessary, which has led to a loss of trust among users, advertisers, and investors. In an era where trust is a critical component of brand loyalty, this could have long-term consequences for the platform.

The Temptation of Change for Change’s Sake

As CEOs and CMOs, it’s easy to be tempted by the allure of change, especially in a rapidly evolving market. But change should never be pursued for its own sake. Before embarking on a rebranding journey, it’s essential to weigh the potential benefits against the risks. Ask yourself: Is this change necessary? Will it enhance our brand equity or diminish it? Are we solving a real problem or creating new ones?

Twitter’s rebranding to “X” serves as a cautionary tale for all leaders. While change is sometimes necessary, it should be approached with caution and a clear understanding of the potential consequences. The cost of a misstep can be far greater than the potential reward.

In the end, the most successful brands are those that stay true to their core identity while evolving to meet the needs of their audience. Rebranding can be an unbelievably powerful tool—but only when it’s done right. And only for the right reasons. If considering, let us know how we might help.

1 https://www.globalbankingandfinance.com/71-of-consumers-more-likely-to-buy-a-product-or-service-from-a-name-they-recognise/
2 https://https://www.omnisend.com/blog/why-brands-still-call-it-twitter/