What is meant by the term simple brands? How do simple brands win in today’s marketplace. CMO’s Giselle A. gives us insights into how effective some of the top brands have been by keeping their brands simpler for the consumer to understand, connect with, and experience. Check out this interesting perspective towards more simple brands.
Study: For Brands, Simple Is Smart. . .And It Pays
by Giselle Abramovich
Senior & Strategic Editor
Creating simplicity is often hard, but it’s worth the effort, according to a new study by Siegel+Gale. The key finding is that, depending on the industry, consumers are willing to pay more–up to 4 percent more–for simpler brand experiences and interactions.
The amount they are willing to pay varies by industry.
Siegel+Gale’s fifth annual “Global Brand Simplicity Index” is based on an online survey of more than 12,000 respondents in eight countries. The study ranks 585 brands by their perceived simplicity. Zappos has taken the No. 1 spot in the United States, kicking last year’s “most simple company,” Amazon, to the No. 2 slot.
Siegel+Gale’s tagline is “Simple is smart,” explained Brian Rafferty, the company’s global director of customer insights. “And so instead of just saying it, we set out five years ago to prove there is a benefit for brands to embrace simplicity and that simplicity pays,” Rafferty said.
According to the study, brands that are perceived by consumers as providing simple experiences also have very high customer loyalty, foster innovation among employees, and, in the long run, increase revenue.
While Zappos did well in the U.S., Aldi ranked No. 1 globally. According to Rafferty, what makes this year’s study more interesting is the first-time inclusion of 32 disruptors–emerging brands such as Airbnb, GrubHub, and Uber. Siegel+Gale ranked them separately, but when integrated with the 585 established brands, the disruptors took eight of the top 10 spots.
Brands including LinkedIn, HSBC, Hertz, and Citibank were all the way at the bottom of the Simplicity Index.
Get the full list here, or watch the video below for a summary of findings: