The Startup’s Dilemma: How to Choose the Right Name for Your New Product or Service

Should you choose descriptive or more creative, non-descriptive names?

 

Choosing the right naming strategy is hard, but it can make all the difference. Everyone has an opinion!  While creative and abstract names may seem appealing, research and industry best practices suggest that descriptive names are the most effective choice for startups, new products, and feature branding. 

 

Here’s why descriptive naming should be a key component of your go-to-market strategy, along with actionable insights to help you leverage this powerful tool.

The Benefits of Descriptive Naming

  1. Instant Clarity and Immediate Understanding

Descriptive names provide instant clarity about a product’s purpose or the problem it solves. They can significantly enhance consumer understanding of a new product’s attributes and functionalities. For startups and new products, this immediate transparency can reduce the need for extensive marketing efforts to explain the product’s utility.

 

Example: “Grammarly” is a descriptive name that instantly conveys the product’s purpose – a tool for improving grammar.

 

Consider also “Salesforce,” a descriptive name that clearly conveys the product’s focus on empowering sales teams. By using a descriptive name, Salesforce was able to quickly establish itself as a leading CRM solution without the need for extensive brand education.

  1. Enhanced Discoverability and SEO Benefits

Descriptive names naturally align with common search queries and keywords that potential customers might use when seeking solutions online. This organic alignment with search engine optimization (SEO) can drive higher web traffic without substantial advertising spend.

 

SEO can make or break early-stage startups as they try to gain visibility and traction. A one percent increase in search engine rankings can lead to a nearly two percent increase in website traffic. By incorporating relevant keywords in your product or feature name, you can improve your search engine rankings and attract more qualified leads.

 

Descriptive names offer a significant advantage in this regard by naturally aligning with the common search queries and keywords potential customers use when seeking solutions online. 

 

For example, “HubSpot” incorporates the term “hub,” which is commonly associated with marketing and sales software. This descriptive element helps HubSpot rank highly for relevant search queries, driving organic traffic and enhancing brand visibility.

 

And “Hootsuite” incorporates the term “suite,” which is commonly used in searches related to social media management tools.

  1. Cost-Effective Branding and Market Positioning

For startups with limited marketing budgets, a descriptive name that clearly communicates the product’s function can reduce the need for expensive branding campaigns. This approach allows startups to allocate resources more efficiently while still achieving market penetration. Descriptive naming can be a powerful tool in overcoming budget limitations by reducing the need for extensive and costly branding campaigns. 

 

Moreover, descriptive names help startups and new products position themselves clearly in competitive markets. Clear brand positioning is crucial for startups to differentiate themselves effectively, particularly in sectors where consumers may not have extensive prior knowledge of the available options.

 

Example: “Dropbox” is a descriptive name that clearly positions the product as a cloud storage solution, making it easier for the startup to establish itself in the market.

 

The success of “Zoom” also illustrates this point. By choosing a descriptive name that immediately conveys the product’s video conferencing capabilities, Zoom was able to rapidly establish itself as a leader in the market, even amidst intense competition.

Implementing Descriptive Naming: A Tactical Approach

To leverage the power of descriptive naming for your startup or product, consider the following tactical steps:

  1. Identify Your Core Value Proposition

Start by identifying your product’s core value proposition. What problem does it solve? What are its key features and benefits? Use this information to brainstorm descriptive terms that accurately represent your product.

  1. Conduct Keyword Research

Use keyword research tools to identify the terms and phrases that your target audience is using to search for solutions like yours. Incorporate these keywords into your naming options to optimize for SEO and improve discoverability.

  1. Test and Validate

Before finalizing your descriptive name, test it with your target audience. Conduct surveys or focus groups to gauge understanding, memorability, and overall reception. Use this feedback to refine your naming strategy and ensure that it resonates with your intended market.

 

While descriptive naming has its drawbacks, such as potential limitations on scalability and trademark challenges, the benefits far outweigh the risks for startups and new products. By leveraging the power of descriptive naming, you can establish a strong foundation for growth, improve discoverability, and effectively position your brand in the market.

 

Bottom line, descriptive naming is a powerful strategy that every startup and product manager should have in their toolkit. By providing clarity, enhancing discoverability, and enabling cost-effective branding, descriptive names can give your startup or product the competitive edge it needs to succeed in today’s crowded market.

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