New York-based global brand strategy, design and experience firm Siegel+Gale released the findings of its seventh annual Global Brand Simplicity Index.
Key findings include:
Simplicity earns a premium. 64% of consumers are willing to pay more for simpler experiences.
Simplicity builds loyalty. 61% of consumers are more likely to recommend a brand because it’s simple.
Complexity costs. Brands that don’t provide simple experiences are leaving an estimated share of $86 billion on the table.
Simplicity performs. A stock portfolio of the simplest global brands outperforms the major indexes by 330%.
Simplicity inspires. 62% of employees at simple companies are brand champions vs only 20% of employees at complex companies.
The study, based on an online survey of more than 14,000 respondents across nine countries, ranks 857 brands on their perceived simplicity.
“Our seventh Global Brand Simplicity Index demonstrates more powerfully than ever that brands that embrace simplicity are more profitable,” says Howard Belk, co-CEO and chief creative officer. “The research shows that businesses that haven’t been providing a simpler customer experience have left an estimated $86 billion on the table. Ignoring that kind of ROI is crazy.”
The report lists KFC, McDonald’s and Subway as some of the Top 10 brands that remain consistent year-over-year, while others fluctuate. For instance, five out of six brands representing the restaurant industry are in the Top 15, indicating that quick-service often means simple service.
As part of this year’s study, Siegel+Gale interviewed marketing leaders of brands that are featured in the Simplicity Index to explore how they strive to make simplicity manifest in their organizations. Executives then opine on how they provide simple experiences.