Siegel+Gale's Third Annual Global Brand Simplicity Index™ Reveals How Simplicity Sparks Profits, Loyalty and Innovation

NEW YORK, Oct. 16, 2012 /PRNewswire/ -- In its Global Brand Simplicity Index, Siegel+Gale (www.siegelgale.com) evaluates the state, significance and impact of simplicity and provides recommendations to brands on how to improve their customer relationships and create value. Key findings include:

• The financial value brands can derive from greater simplicity
• The crucial link between simplicity and the ability to innovate
• The best and worst brands and industries when it comes to simplicity and what can be learned from them
• The role simplicity plays in consumers' lives, from religion and politics to working and shopping

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Siegel+Gale's 2012 Global Brand Simplicity Index surveyed more than 6,000 consumers in Europe, the Middle East, Asia and North America to uncover the perceived points of complexity and simplicity in people's lives.

The third annual survey reveals consumers worldwide seek simplicity in their daily interactions with brands. They expect simplicity at every touchpoint, and reward such brands with purchase at higher pricing points. Simplicity also pays dividends for brands: a stock index comprised of the top 10 ranked simplest brands from the study has increased by 138 percent since 2009, more than double the increase of the S&P and any of the other stock indexes.

Results show that brands need to understand when simplicity is best achieved by leveraging global scale and when it's critical to offer a unique local experience to capture the hearts and minds of consumers. The study also shows that brands willing to simplify their consumer experiences and interactions stand to gain more loyalty—and more money.

• Eighty percent of global consumers are more likely to recommend a brand that offers a simpler experience
• Depending on the category, global consumers are willing to pay an average premium of 4.9 to 7.2 percent for simpler communications and experiences
• In the U.S., U.K. and Germany alone, brands that offer increased simplicity stand to capture close to $49.9 billion

Another key finding is that complexity is killing innovation. Across the globe, "promoting an innovative idea" is one of the most complex aspects of work life. It ranked third to last out of 21 different tasks an employee faces at work. The study shows that the industries where workers find it simpler to promote an innovative idea are also often perceived as the simplest industries by consumers.  Those brands that enable innovation from their workforce achieve the best results: a simpler experience for customers and higher stock prices.

The 2012 Global Brand Simplicity Index™ top 10 brands include:

Globally brands ranked from a high of 891 (indicating the leaders) to a low of 260 (indicating the laggards).  

"The Global Brand Simplicity Index continually demonstrates that simplicity pays for companies and consumers," said David Srere, co-CEO and chief strategy officer of Siegel+Gale. "Brands stand to benefit from strengthened customer relationships and increased loyalty if they just take the time to listen to their customers and simplify their touchpoints. Our survey is a powerful reminder of the potential of simplicity for business."

SIMPLICITY IN DAILY LIFE

Beyond assessing consumer relationships with brands, this year's Global Brand Simplicity Index also focused on how simplicity affects individuals' daily lives— especially in the areas of religion, politics and the workplace.

Politics or religion? Not surprisingly, these highly personal beliefs have an impact on how people perceive the complexity in their lives. Globally, those who considered themselves "very religious" or "somewhat religious" rated life simpler than others. And it should come as no surprise that U.S. respondents indicate an inverse correlation between level of political engagement and life simplicity. In other words, it seems for many that tuning out of politics simplifies their lives.

Big or small? It depends. The study highlighted insights around companies that simplify the experiences of their employees. Respondents at large firms indicated that it was easier to take time off or to receive feedback about their work than many other aspects of work life. Yet those at small firms said it was much simpler to understand how informal communications flow, get questions answered and understand how company changes affect them.

"Understanding my company's mission" was rated as one of the most simple aspects of work life for employees of all companies sizes. Yet despite this clarity regarding mission, employees rated understanding opportunities for career growth near the bottom. Although employees know why their company exists on a broad level, they have difficulty understanding their own path up the corporate ladder.

"Our study continues to demonstrate that people around the world want clarity and transparency," said Howard Belk, co-CEO and chief creative officer of Siegel+Gale. "Simplicity has the ability to make a major difference in our day-to-day lives. Whether we're interacting at work, at the bank, at home or at the store, it's all the same—we want life to be simple and are willing to pay for it."

INDUSTRY SECTORS

The 2012 Global Brand Simplicity Index ranks 25 industries, including automotive, media, fashion, appliances, electronics, telecom and more. To learn more, read the full report here.

About the 2012 Global Brand Simplicity Index™

Siegel+Gale's Global Brand Simplicity Index™ is an output of global brand ratings based on an online survey of more than 6,000 consumers in seven different countries. Each rating comprises the simplicity / complexity of a brand's interactions and communications in relation to their industry peers. The index also incorporates an industry simplicity score for a particular brand's industry / category(ies). The annual research study was first conducted in 2010.

Siegel+Gale used the survey results to develop its Global Brand Simplicity Index™, which generates a Simplicity Score™, a rating of each brand and its category on the elements of the simplicity methodology. Siegel+Gale defines simplicity as ease of understanding, transparency, caring, innovation and usefulness of communications as well as how complex and complicated typical interactions are in relation to industry peers.

About Siegel+Gale

Siegel+Gale (www.siegelgale.com) is a global strategic branding firm committed to building world-class brands through elegantly simple, unexpectedly fresh strategies, stories and experiences. With Simple is Smart as its operating philosophy, Siegel+Gale delivers powerful services in brand development, simplification, research and digital strategy.

Since its founding by branding pioneer Alan Siegel in 1969, Siegel+Gale has helped drive business results for leading corporations, nonprofits and government organizations worldwide. Siegel+Gale has offices in New York, Los Angeles, San Francisco, London, Hamburg, Dubai, Shanghai and Beijing and strategic partnerships around the world. Siegel+Gale is a part of Diversified Agency Services, a division of Omnicom Group Inc.

About Diversified Agency Services

Diversified Agency Services (DAS), a division of Omnicom Group Inc. (NYSE:OMC), manages Omnicom's holdings in a variety of marketing communications disciplines. DAS includes over 200 companies, which operate through a combination of networks and regional organizations, serving international and local clients through more than 700 offices in 71 countries.

About Omnicom Group Inc.

Omnicom Group Inc. is a leading global marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries.

Contact:

Abby Trexler
CooperKatz for Siegel+Gale
917.595.3042

SOURCE Siegel + Gale, LLC