Simple issmart and other lessons from the Global Brand...

254 © HENRY STEWART PUBLICATIONS 2045-855X JOURNAL OF BRAND STRATEGY VOL. 1, NO. 3, 254–261 AUTUMN 2012

Howard Belk,Siegel � Gale,625 Avenue of the Americas,New York,NY 10011,USA

E-mail: [email protected]: www.siegelgate.com

Simple is smart and other lessonsfrom the Global Brand SimplicityIndexReceived (in revised form): 24th July, 2012

HOWARD BELKis co-CEO and chief creative officer for Siegel � Gale, a global strategic branding and experience firm based in NewYork City. Howard has led global branding initiatives that span virtually every business sector, receiving internationalrecognition and numerous awards. Howard earned a bachelor of fine arts at Philadelphia’s University of the Arts,where he later served as a guest professor. He sits on the board of directors of clothing manufacturer Kahn LucasLancaster.

BRIAN RAFFERTYis Siegel � Gale’s global director of Research Insights.As head of the firm’s overall research practice, Brianspearheads initiatives to mine powerful insights that build world-class brands. For more than a decade Brian hasworked extensively in marketing strategy, brand positioning and quantitative and qualitative research, providing hisexpertise for companies across a wide range of industries. Brian earned an undergraduate degree from PrincetonUniversity and baccalaureate degrees from France’s Lycée Pasteur.

AbstractConsumers are always seeking the products, services and experiences that will improve the quality ofpeople’s lives.Those brands that effectively employ simplicity — by providing a consistent experience,easy access and clear presentation — tend to come out on top.This paper conveys the findings inSiegel � Gale’s 2011 Global Simplicity Index, an output of global brand ratings based on an onlinesurvey of more than 6,000 consumers across seven countries. Most important, the survey articulatesand underscores the across-the-board demand for simplicity from consumers trying to navigate theirway through an increasingly complicated world. In addition, the paper illustrates how many brands areleaving money on the table by failing to embrace simplicity in their communications and interactionwith consumers. Also included are Siegel � Gale’s ‘Simple How-Tos’ for harnessing brand simplicity.

Keywordsbranding, brands, simplicity, brand experience, Global Brand Simplicity Index

INTRODUCTIONConsumers are always seeking products,services and experiences that improve thequality of their lives.The ongoing marketdominance of companies that simplifycustomer experiences (such as Amazon)and the success of simplified technologies(such as the iPod) make it clear that sim-plicity truly does sell.

Siegel�Gale defines simplicity as ease ofunderstanding, transparency, caring, innova-tion and usefulness of communications.

When properly applied, it helps consumersmake decisions, saves time and money andminimises debate over decisions. Mostimportantly, simplicity forges powerful rela-tionships with customers and builds brandloyalty. It is a core principle for how brandsinteract with consumers and generate long-term financial benefits. Simplicity is whySteve Jobs loathed buttons and why Googlewon over a generation with the austeremotto: ‘Don’t be evil’. Zero buttons.Threewords. Billions of loyal consumers.

Howard Belk

Brian Rafferty

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LESSONS FROM THE GLOBAL BRAND SIMPLICITY INDEX

© HENRY STEWART PUBLICATIONS 2045-855X JOURNAL OF BRAND STRATEGY VOL. 1, NO. 3, 254–261 AUTUMN 2012 255

SIMPLIFIED COMMUNICATIONS ANDEXPERIENCESSustained investment in simplified com-munications and experiences breeds moreextensive and enduring brand loyalty.

The 2011 Global Brand Simplicity Indexis an output of global brand ratings based onan online survey of more than 6,000 con-sumers across seven countries — the US,UK, Germany, China, India, Saudi Arabiaand Dubai. The survey articulates andunderscores the across-the-board demandfor simplicity from consumers trying tonavigate their way through an increasinglycomplicated world crowded with real andvirtual clutter.The following top ten globalbrands engage consumers through simplic-ity by crafting a brand identity and experi-ence that resonates with consumers’common desire to keep their lives simple.

A CLEAR SENSE OF IDENTITYBrands with a clear sense of identity,focused on consistent experience andcommunications, are big winners.

Each of the top global brands has inter-nalised simplicity into how they think,speak and behave, which further illustratesan important point revealed by thesurvey: industry is not destiny. Althoughsome industries may be more complexthan others, simplicity is a universal valuefor any business or organisation.Whateverthe industry or product, companies thateffectively employ simplicity tend to win,the wisdom of their approach reflectedtime and again in their market share, prof-its and stock performance. Simplifyinginteractions with consumers does notmean that the underlying products orservices must be simple. The winnersmove complexity to the background andminimise it for consumers. After all, con-sumers are human. Whether engagementis achieved online, over the phone,through the media or face to face, ulti-mately relationships are built on expecta-tions set, met — and exceeded.

Half of the top ten brands are fromtechnology, telecommunications or inter-net sectors.Across the globe, ease of com-

Figure 1: Global top ten brandsSource: Siegel+Gale

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BELK AND RAFFERTY


munications was considered technology’sgreatest contribution to a more simplifiedlife. E-mail and phone ranked in the topthree simplest technology products.

The ten least simple global brands areRamada, Budget, AXA, Hertz, LinkedIn,Peugeot, Allianz, Enterprise, Ryanair andGE. Half of these bottom dwellers aretravel-related, reflecting consumer dissatis-faction with perceived declines in servicesafforded the average traveller.To be consid-ered, the brand had to appear on tworegional lists.

SIMPLICITY SERVES A PURPOSEWhen properly applied, simplicity serves apurpose, it gets into our heads faster andstays there longer, helps us make choices,saves time, money and minimises debateover decisions.

The problem many brands have withintegrating simplicity into their culture,values and messaging is that they fail tounderstand fully what ‘simplicity’ entails.They wrongly apply the most superficialconnotations to the term, and miss itspower. Simplicity does not mean a lack ofsophistication, but a lack of obfuscation.Simplicity is a belief in the value of hon-esty, research, vision and innovation.

People value simplicity. In fact, thesurvey found that people everywherecrave simplicity, regardless of geography,gender or age group. They look for it ininterpersonal relationships, and believethat technology is part of the answer. Anoverwhelming majority recognises thatthe benefits of simplicity include greaterpeace of mind and less stress, which trans-lates into more enjoyable lives. Brands thatalign themselves with this fundamental

Figure 2: Global simplicity by industrySource: Siegel+Gale

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human condition connect with consumersin very powerful and meaningful ways.

Alan Siegel, founder and chairmanemeritus of Siegel � Gale, explains sim-plicity this way:

‘We all seek simplicity. The circumstancesvary from generation to generation andculture to culture, but the instinct is univer-sal and its implications in the global market-place indisputable. In business, simplicitycreates an environment that promotes peaceof mind with consumers, inspires confi-dence and generates brand loyalty.’

‘82% of people worldwide are morelikely to recommend a simpler brand’Consumers do not support brands that taketheir hard-earned money for granted.Unforeseen fees, last-minute surcharges andhidden penalties greatly anger consumers,resulting in debilitating trust crises forbrands. Incorporating simplicity into everytouchpoint poses challenges,but brands thatfail to integrate it into their DNA lose cus-tomers. In today’s connected world, oneunhappy customer can lead to hundreds, ifnot thousands more, within minutes.

Take European airline Ryanair, whichranked a lowly 86 out of 87 global brands.

Ryanair uses artificially deflated prices toentice bargain-shopping travellers to buytickets on its website. Consumers wereunambiguous about the acute disconnectthey felt between the carrier’s promises ofcheap and simple air travel and their actualexperience. Many respondents thoughtRyanair’s offers were intentionally complex— a common reaction when communica-tions lack transparency and directness.

Simplicity paysIn the USA, UK and Germany alone,companies in the surveyed industries areleaving more than US$30bn on the table.

Many brands are leaving money on thetable by failing to embrace simplicity. Infact, the study found that consumers areso serious about simplicity that they arewilling to pay for it — between 5 percentand 6.5 percent extra, depending on thecategory. Consumers want to be told thetruth, and any brand’s attempt to disin-genuously characterise itself as being themost organic, the least expensive or thebest bargain ultimately results in branderosion and diminishing returns in con-sumer loyalty — and significant amountsof lost revenue.

Figure 3 Global bottom ten brands

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BELK AND RAFFERTY


The survey asked people if they wouldbe willing to pay more for simpler com-munications and interactions, and if so,how much more. Brands in the financialindustry stand to gain the most — at anestimated US$4.3bn. This is not all toosurprising given that years of recessionand a struggling economy have changedthe relationship between people and theirfinances. Consumers feel jilted and financial brands — particularly retailbanks — need to tread lightly whenengaging their customers.

When respondents were asked to ratea set of banking processes in terms ofsimplicity, understanding bank fees was atthe bottom of the list. Consumers hadvery negative feelings about not com-pletely understanding when and howthey were being charged. Using an ATM,on the other hand, was the most simple.So while the focus on simplifying the

transactional pieces of the customerexperience is having a positive impact,the communications are still sorely lack-ing. There is an opportunity for banksthat put it all together: transparentprocesses, easy access to knowledgeablestaff, and clear and simple policies andagreements.

Simplest brands perform best A portfolio made from the publicly tradedstocks of the top 10 global simplest brandsoutperforms and is less volatile than themajor indexes.

Brands must prepare for the future, andthat means knowing where and how con-sumers will live in that sliver of spacewhich exists between human beings andthe technologies they use. Leading theway is Google, the number one globalbrand.With its simple brand identity and

Figure 4 In the USA, businesses are leaving more than US$20.1bn on the tableSource: Sigel+Gale

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boundless energy for corralling new tech-nologies and implementing innovativesocial media strategies (the company ownsYouTube, for example), Google remains atthe forefront of our lives and the GlobalBrand Simplicity Index.

Google dominated every part of theworld except China (where domesticbrand Baidu still reigns). It should come asno surprise that Google’s simple designunleashes a mind-boggling universe ofinformation, opportunities and services —all without overwhelming the user.Capitalising on its success, Google has runits ubiquitous online thread throughnews, products and advertising and made

it look deceptively simple. In the com-pany’s Think Quarterly publication,Google’s People Analytics Manager ColeNussbaumer recently asserted that ‘simpleis the new sexy.’

Simplicity creates an environment thatpromotes peace of mind with consumers,inspires confidence and generates brandloyalty. But whatever the industry or theproduct, the companies that effectivelyemploy simplicity tend to come out ontop, the wisdom of their approachreflected time and again in their marketshare and stock performance.The top 10simplest global brands have outperformedthe market by a significant margin.

Figure 5 Simplicity still paysSource: Sigel+Gale

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BELK AND RAFFERTY


SIEGEL � GALE’S SIMPLE HOW-TOFOR HARNESSING BRAND SIMPLICITYThink humanDevise processes and communications tobetter serve people rather than merelyincrease efficiency.

Retail banks need to reach out topeople, and not just their money.Advances in technology have led toimproved customer service with onlinebanking and depositing cheques viaphone. But banks are failing to developbrand loyalty because of what many con-sumers see as a lack of honesty. An ailingeconomy means people are no longerwilling to simply hand over their pay-cheques to banks. Today’s consumers arescrutinising the risks banks are takingwith their money. They worry aboutbeing exploited by additional charges toroutine transactions.

Retail banks would be wise to followthe branding strategies of HSBC, whichwas ranked as the simplest global bankingbrand. Consumers were engaged byHSBC’s simple global message: issues canbe addressed and questions answered with-out the burden of unnecessarily complexfinancial language and information.

Think experienceTake a customer-centric approach toeverything, including typically ignoredtouchpoints such as bills, labels and serv-ice interactions.

Consider utility brands. For many ofthese companies, the only consistent con-sumer touchpoints are complex monthlybilling statements. Consumers resent util-ities that send bills containing unexpectedsurcharges or fees.They are wary of smallprint, believing that brands are manipulat-ing them to gain an advantage at theirexpense. It is surprising how many brands

fail to leverage brand loyalty and goodwillvia touchpoints such as clear and simplebilling.

Think consistencyFocus on delivering a consistent and trueexperience across all touchpoints andcommunications.

No brand exemplifies the importanceof consistency more than Netflix, thenumber one brand in the index for theUSA. Netflix built up incredibly robustgoodwill with consumers by offering asimple way to rent movies without latefees. Even after a rate hike, Netflix wasseen as the simplest brand in the USA.Subsequent to the survey, Netflixannounced that it would split into twoseparate companies, one offering stream-ing video and the other, dubbedQuickster, offering DVDs by mail. Afterconsumer outcry, Netflix quickly reversedits decision and returned to its simpleservice model. As of this writing, bothNetflix’s stock price and subscriber baseare increasing at an enviable rate.

Think innovationLook to technology as a tool to simplify,not just dazzle. Find unexpected waysyour brand can simplify its experience togain differentiation and loyalty.

It makes sense that Apple, a brandobsessed with simplicity, ranked sohighly — number five — in the index.Admired for its laser-sharp focus on con-sumer-friendly products, Apple thrives inevery category — from product function-ality to targeted advertising — that con-sumers find relevant and intuitive,sophisticated and simple.

Apple also creates valuable brand expe-riences for millions of consumers through

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its Apple Stores, where customers areencouraged to interact with the brand’sproducts and promises. Apple Stores fea-ture a ‘genius bar’ staffed by knowledge-able, tech-savvy and customer-friendlyemployees who provide both transparencyand simplicity to customers when answer-ing questions. Through its retail touch-points,Apple demonstrates that innovativebrands value people as much as theirproducts.

Think governanceGovernance is the process of orchestratingand aligning disparate parts of the organi-sation to create value for customers andthe brand through cohesive, relevant, dif-ferentiated and simple experiences.Diagnose current customer experiences,prioritise those that define the brand, alignand orchestrate each part of the organisa-

tion that contributes to those experiences,and monitor customers’ response.

The 2011 Global Brand SimplicityIndex underscores the across-the-boarddemand for simplicity from consumerstrying to navigate their way through anincreasingly complicated world.Companiesthat respond to the collective cry for trans-parency, easy access and clear presentationgain on the bottom line and beyond.

FURTHER INFORMATIONTo learn more about Siegel�Gale’s GlobalBrand Simplicity Index and its methodol-ogy, and to see the complete global andregional rankings for industries and brandsin the USA, UK, Germany, China, Indiaand the Middle East (UAE and SaudiArabia), please visit www.siegelgale.com/white_paper/2011-global-brand-simplic-ity-index/

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