When IKEA decided to switch its logo font last month from Futura to the ubiquitous Verdana, it took some customers by surprise. Many are wondering why a seemingly insignificant change erupted into controversy. ARice University marketing professor, Vikas Mittal, may have the answer.

Co-author of “Do Logo Redesigns Help or Hurt Your Brand?” ­— ­­a new study exploring how customers react when a company changes its logo— Mittal sheds light on the relationships we form with brands. The professor recently spoke to the Chronicle about ways companies can prevent brand blunders and why it’s important to consult with the customer base first. What follows are excerpts of that conversation.:

Q: What is your area of research interest?

A: I look specifically at what actions companies take to improve customer satisfaction and how these changes impact their employee retention and long-term financial performance.

We noticed that companies spend a lot of effort redesigning their logo. A typical redesign can take up to two years and cost $15 million to $20 million for a large company. Yet, there isn’t too much research done on how it affects their customers. Anything from size, typeface to color can trigger different associations.

 

Q: Your most recent study takes a look at logo redesign and in particular, font change. What did you discover?

A: One of the things we did is change logos of different recognized brands, like Adidas and New Balance, to make them either more round or more angular, and examined how customers responded to the difference. We found customers with a high level of commitment to the brand became unhappy with the change and the customers with a low level of commitment were more happy.

The very interesting thing here is that a lot of managers think loyal customers will always buy their products and that changing the logo a little won’t matter because it’s just an aesthetic issue. But we find these customers see themselves as so connected to the brand that they feel threatened. This basically goes back to the idea a picture is worth a thousand words.

Q: How do these redesigns affect consumers’ brand attitudes and buying power?

A: What you find is that companies who have strong brands typically encounter financial benefits, lower cash flow risk and are able to finance their debt at a lower cost. You don’t want to imperil that by trying to change the brand without doing full research.

We usually see an initial dip in sales when companies redesign logos, and then things go back to normal as people get slowly acclimated. Some customers who felt really negatively won’t go back to the store, but many are able to forgive their brands.

Q: What are three tips companies should remember when designing, or redesigning a logo?

A: 1. Do enough marketing research — like focus groups combined with surveys — to quantify the impact and get a sense of how customers will react.

2. Never do it unilaterally, make it a participative effort. Key constituents companies ignore are their employees.

3. Instead of having one big splash, make it a soft launch. Bring it out gradually— if there are any pitfalls you will know how to deal with them early on.

Q: What is your take on the IKEA font change uproar and why did it illicit such a response?

A: One thing the company has to understand is that the four letters in IKEA are the brand. A lot of customers against this change see themselves connected to what IKEA represents — progressive, modern style. Changing the font jeopardizes all of those associations.

Q: What lessons can companies learn from the backlash IKEA and others faced from loyal customers?

A: Companies shouldn’t rebrand and wait to see what the impact is. No matter how slight the change is, consult with committed customers so they feel like partners in the transition.