Siegel+Gale’s Global Brand Simplicity Index™ Ranks Top Brands Consumers Deem Most Simple DUBAI, United Arab Emirates - Thursday, February 17th 2011 [ME NewsWire]
Despite a still challenging economy, Middle Eastern consumers who live in the UAE and Saudi are willing to pay more for brands that deliver simpler experiences and interactions. This is a key finding of the first annual Global Brand Simplicity Index, released today by global strategic branding firm, Siegel+Gale (www.siegelgale.com). The survey of more than 6,000 consumers across seven countries uncovers the perceived points of complexity and simplicity in people’s lives, as well as the Simplicity Premium™, or the value people place on having a more simplified experience with brands in various industries.
According to the survey, a stock portfolio of the top 10 publicly traded brands in the Global Brand Simplicity Index™ would have made a 79.9% ROI from January 1, 2009 to December 31, 2010. Invested in the S&P 500 - you’d have only made a 35% ROI, Dow 28.1% ROI, DAX 39.0% and FTSE 29.3%!
Depending on industry, between 11 and 34 percent of Middle Eastern Consumers, living in the UAE and Saudi, are willing to pay more for brands they believe offer the greatest value of simplicity. This is in-line with other countries including India (18 to 34 percent) and China (12 to 31 percent), but significantly higher than European counties (4 to 15 percent) surveyed and in the US (7 to 17 percent).
The amount that consumers are willing to pay varies by industry, but is significant. Technology and automotive are among the industries that have the most to gain from a financial perspective, with consumers willing to pay more than 8 percent for simpler products and services.
The survey highlights that in the Middle East, the Technology/ Media industries are seen as simplest in their interactions and communications with people. Banks, credit card and insurance industries are rated as most complex and least clear. Apple remains a firm favourite in the region, but surprisingly this was not true across all the countries that were surveyed.
Capturing the Value of Simplicity
To pinpoint the role and value of simplicity in consumers’ lives, the Siegel+Gale survey examined respondent’s answers to the following types of questions:
· How complex or simple do people feel their lives are? Over the years, how has this changed?
· What business sectors contribute most to making people’s lives simpler or more complex?
· What brands are clearest and simplest in their communications and interactions with consumers?
· What value do simple communications and interactions provide to consumers?
Motivated by the power of simplicity to help organisations realise their true potential, Siegel+Gale used the survey results to develop the first ever 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 painful typical interactions are in relation to industry peers.
The Middle Eastern Brand Simplicity Index™ top 10 spots are dominated by technology and media brands – with only a few retail brands.
#
Brand
Brand Simplicity Index™™ Score®
1
Apple
849
2
Gulf News
829
3
amazon.com
827
4
7Days
818
5
Mango
814
6
Siemens
810
7
Union Coop
802
8
Boots
799
9
Toshiba
796
10
Samsung
783
Key survey findings from respondents revealed that the top brands on the Global Brand Simplicity Index™ make people’s lives simpler by:
· Communicating directly, clearly and without jargon
· Reducing stress by providing savings/value
· Saving time by increased convenience and accessibility
· Facilitating ease of use and interactions
· Enabling consumers to get more from life: deeper relationships, easier going lifestyles
Further validating simplicity in technology industries, one respondent said, “Electronic items make it easy for me to communicate, to entertain and to relax.” Another commented regarding Apple, “The iPhone has made my life easier, as I can set up all my appointments/ reminders.”
“This survey identifies the industries, consumer segments and geographies where it’s possible to differentiate and command a price premium based on simplicity,” said Howard Belk, Siegel+Gale co-CEO and chief creative officer. “If industries like mortgage, credit card and insurance want to regain consumer trust and thrive in this tough environment, they need to take a hard look at the negative repercussions of complexity.”
Key survey findings from respondents revealed that the lowest rated brands on the Global Brand Simplicity Index™ make people’s lives more complex by:
· Communicating in ways that are hard to understand and/or perceived as deceitful
· Being perceived to intentionally overcharge
· Being seen as ‘niche’ or targeted to too select an audience / not accessible
· Being found difficult to interact with, with poor customer service experiences and/or hard to use interfaces
“It's an insightful survey that demonstrates the powerful desire for simplicity in an increasingly complex world,” says Tarek Sultani, Managing Director, Siegel+Gale Middle East. “As the Middle East continues to rapidly grow and develop, no brand can afford to overlook the financial value that can be gained through offering simpler customer experiences.”
Review the full survey results here: (http://www.siegelgale.com/wp-content/uploads/2011/02/Global_Brand_Simplicity_Survey_2010_Middle_East.pdf)
Contacts
Emmaclare Huntriss
Marketing Director, EMEA
T: +44 (0) 7525223881
E: ehuntriss@siegelgale.com
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