CONSUMERS WILL PAY A PREMIUM FOR BRAND SIMPLICITY, SURVEY REVEALS
UK consumers are willing to pay more for brands that deliver simpler experiences and interactions, according to new research by strategic branding and design agency, Siegel+Gale.
Defining 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, Siegel+Gale found that, depending on the industry, between 5% and 15% of UK consumers are willing to pay more for brands they believe offer the greatest value of simplicity.
This figure is broadly the same among US consumers, but is not as high as other countries surveyed, such as India, China and the Middle East, where up to 34% are willing to pay more.
In the UK, Fitness, Air Travel, Restaurants & Entertainment and Technology & Electronics industries stand to gain the most, where consumers are willing to pay a premium of at least 4% more for brands they believe offer the greatest value of simplicity. The mortgage, credit card and insurance industries are rated as most complex and least clear.
In compiling its first annual Global Brand Simplicity Index, Siegel+Gale surveyed more than 6,000 consumers across seven countries. It used the results to develop the Global Brand Simplicity Index which generates a Simplicity Score – a rating of each brand and its category on the elements of the simplicity methodology.
In the UK, the index is headed by Asda, amazon.com, Sainsbury’s, Tesco and McDonald’s.
The research also highlights how the top brands on the index make people’s lives simpler. They do so 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 lifestyles.