According to Siegel+Gale’s fourth annual Global Brand Simplicity Index, simplicity not only stands out, but “it brings clarity instead of confusion, and decision instead of doubt. The rewards are real—simplicity inspires greater loyalty in customers, makes innovation easier for employees and drives revenue for brands.”
The Global Brand Simplicity Index evaluates the state, significance, and impact of simplicity on brands. This year the research explored the relationship between simplicity and employee innovation more deeply.
Here are some takeaways from the report:
In the U.S., U.K., and Germany alone, brands that offer increased simplicity stand to gain $50 billion in revenue
75% of consumers are more likely to recommend a brand because it provides simpler experiences and communications
In the U.S., 29% of consumers said they are willing to spend up to 4.6% more for a simpler experience
A stock portfolio made from the publicly traded Top 10 global simplest brands outperforms the major indexes
Siegel+Gale’s 2013 Global Brand Simplicity Index is an output of more than 500 brand ratings across 25 industries, based on a survey of more than 10,000 consumers in North America, Europe, Asia, and the Middle East. Once the results were aggregated, Siegel+Gale used the data to generate two scores to measure simplicity: a Brand Simplicity Score and an Industry Simplicity Score.
“Our fourth annual survey reveals that on a global scale, consumers would pay more for simplicity,” Howard Belk, co-CEO and chief creative officer of Siegel+Gale, said in the report. “When consumers experience simplicity at every touch point—it inspires deeper trust and greater loyalty. This year’s Simplicity Index affirms that brands willing to simplify their customer experiences stand to gain more revenue. In the data, we have the percentage increase in price consumers said they would be willing to pay for simpler experiences offered by each brand included in the survey—a tangible illustration of the value of simplicity. Brands are leaving significant money on the table because of complexity.”
Last year, Siegel+Gale explored how companies can make it easier for employees to innovate at work. Last year’s study uncovered that for employees, promoting innovative ideas was the second least simple thing to do in the workplace, just after asking for a raise.
“This year, we dug deeper into the link between simplicity and innovation, and we learned that purpose is a critical factor,” David Srere, co-CEO and chief strategy officer of Siegel+Gale, explained. “According to our study, employees find it easiest to innovate when they understand and are committed to their company’s purpose. We now have empirical evidence that a clear purpose is critical to creating a culture of innovation. But it has to be communicated from the top down, and articulated through the lens of simplicity. At the end of the day, business leaders who invest in simplicity achieve increased revenue and foster innovation.”