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global brand simplicity indEX The full measure of simplicity: where it counts most for brands and consumers 2011 Published on December 7, 2011

Global brand simplicity index 2011

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  • 1. 011 2 u eas ountull m e it che f her con pli f sim st re o s mo sum city ers:globalandTw nds bra forbrandsimplicityindEXPublished on December 7, 2011

2. Global Brand Simplicity Index: 2011letter from the cEoWe all seek simplicity.the circumstances vary from generation to generationand culture to culture, but the instinct is universal and itsimplications in the global marketplace indisputable.it sends messages that are clear, direct and unfetteredby the unnecessary. it expresses itself in ways that areeasily transmitted and translated. in business, simplicitycreates an environment that promotes peace of mindwith consumers, inspires confidence and generatesbrand loyalty.2 3. Global Brand Simplicity Index: 2011Simplicity is elemental, essential and profitable.The 2011 global brand simplicity added questions relating specificallyemploy simplicity succeed by getting confirmation number arriving in lockstepindextm articulates and underscores theto technology, Internet shopping and out of their own way and, in doing so, with an online transaction.across-the-board demand for simplicity social media.drawing customers closer. But whatever the industry or thefrom consumers trying to navigate Because while the introduction of theWhen properly applied, simplicityproduct, the companies that effectivelytheir way through an increasingly iPad made 2010 a technological game- serves purpose. It gets into our heads employ simplicity tend to come outcomplicated world crowded with both changer, 2011 was the year mobilefaster and stays there longer, helps uson top, the wisdom of their approachreal and virtual clutter. technology took unprecedented hold,make choices, saves time, money andreflected time and again in their marketCompanies that respond to thefully embedding itself into our daily lives. minimises debate over decisions. share and stock performance.collective cry for transparency, easy Consider the level of public engagementThis years report takes an industry-by- That, however, is only half of theaccess and clear presentationi.e., surrounding the death of Steve Jobs, industry look at the state of simplicity.equation. Consumers are, after all,simplicitygain on the bottom line the co-founder of Apple. As one human and whether connectivityand beyond. Some industries, we found, are just Washington Post writer put it: Peopleis achieved online, over the phone,simple by naturethe need to feed, forIn our first global brand simplicity built their lives around the objects Stevethrough the media or face-to-face,example, drives the primal give-and-index study in 2010, we confirmed just Jobs gave them: the MacBook, the iPod,in the end its all about perceptiontake of a fast-food restaurant. Others,how much simplicity pays. This year, wethe iPhone, the iPad.and relationships. Its about how welike insurance, are more complex.wanted to dig deeperto quantify the experience our lives and, by extension, But progress and invention bring theirimpact of technology and the Internet In healthcare, simplicity contributeshow companies and products do or own complications. And achieving ain particularand further identify andto wellness; in retail, it facilitates dont relate to that experience. state of simplicity has never been thatanalyse the attributes of simplicitythe ease of purchase and yields simple to begin with. In the United States, the United(and, conversely, complexity) coursinghigher rates of sales; in the world of Kingdom, Germany, China, Indiathrough our wired world. You cant believe how hard it is fortelecommunications, it cuts through and the Middle East where wepeople to be simple, how much theythe static, connects and informs us,In 2010, we found older respondents felt conducted our research, severalfear being simple, former GE CEO through space and time.technology added layers of complexityrecurring themes presented themselvesJack Welch once observed.to their lives while the young concludedSimplicity manifests itself in an endlessin the aggregate and in sometimesquite the opposite. So in 2011, we Nobody really wants a complicatedvariety of forms. It can be as fashionably particularly personal responses.followed that thread and included farrelationshipcertainly not in the worldelegant as that must-have little blackmore Internet brands in our survey and of business. The businesses that dress or as purely functional as the3 4. Global Brand Simplicity Index: 2011When properly applied, simplicity serves a purpose. It gets intoour heads faster and stays there longer, helps us make choices,saves time, money and minimises debate over decisions.6,026 PeoPle Ease of communication is the No.1 Sincerely, reason the world thinks technology makes their lives easier.across 7 But respondents voiced concerns, too, about the double-edge sword of Howard Belk technology. We can connect, they said.Co-CEO, Chief Creative Officer But we are under pressure to always be on. It saves time but demandscountries time. Theres less privacy and more dependency. And with each new generation of innovation and hardware, theres a new learning curve. David B. Srereevaluated Co-CEO, Chief Strategy Officer So, they concluded, unequivocally and almost universally, if you want our business, keep it simple: Be straight. Be clear. Be quick and be real.consuMer Consumers are so serious about simplicity theyre willing to pay for it between 5 percent and 6.5 percent extra, depending on the category. Thatbrands. translates to $30 billion at stake in the U.S., UK and Germany alone. For brands in need of motivation, it doesnt get any simpler than that. 4 5. Global Brand Simplicity Index: 2011Table of contentsletter from the cEo................................................. 24 the state of simplicity by region United States................................................... 3544Executive summary.................................................. 6United Kingdom............................................... 4554 Germany.......................................................... 5564the state of simplicityglobal............................... 820 Middle East...................................................... 6573Relationships................................................... 910India................................................................. 7482Technology...................................................... 11China............................................................... 8391the state of simplicity by industrymethodology............................................................. 92Electronics/Appliances.................................... 22Telecom............................................................ 23 about siegel+gale.................................................... 94Social Media..................................................... 24Internet Search................................................. 25News Media..................................................... 26Retail................................................................ 2728Retail Banking.................................................. 29General Insurance............................................ 30Health Insurance.............................................. 31Utilities............................................................. 32Travel................................................................ 33Automotive....................................................... 34Shipping........................................................... 345 6. Global Brand Simplicity Index: 2011Executive summarysimplicity continUEs to mattEr and pay Among the highlights: Ways to simpliFyIn our first study in 2010, we found that people wereRetail: Think experience:willing to pay more for simpler communications and Theres a bona fide opportunity for simplicity-basedTake a customer-centric approach to everything,experiences from brands. This trend continued in 2011, profit at the nexus of retail and technology. Online retail including typically ignored touchpoints like bills, labelswith global Simplicity Premiums averaging betweenoffers the simplest overall shopping experience by far, and service interactions.5 percent and 6.5 percent depending on industry but still lags in-store for obtaining advice, assessing Think human:leaving billions on the table. merchandise quality and returning purchases. Devise processes and communications to better serveOur Simplicity Portfolio, which is comprised of stocks Technology: people rather than merely increase efficiency.from the leading global Simplicity Index brands, As a growing, worldwide, consumerist culture interacts Think innovation:continues to outperform the major indexes. and intersects with technology, both the sector and the Look to technology as a tool to simplify, not just brands with a focus on simplicity are rising to the topsimplicity bUilds loyaltydazzle. Find unexpected ways your brand can simplify of the index. A compelling 81 percent of respondents its experience and use these to gain differentiationSimplicity is not just about short-term returns. A worldwide say that technology simplifies their lives. and loyalty.sustained investment in simplified communicationsGoogle and Amazon top the worldwide list of simpleand experiences breeds more extensive and enduring consumer brands.Think consistency:brand loyalty. More than 82 percent of respondents Focus on delivering a consistent and true experience simplicity WinnErs and losErsglobally said they would be more likely to recommend across all touchpoints and communications.a brand that provided simpler communications The winning and losing brands cluster by industry,and experiences. with technology, media and retail brands dominating the top of the list and insurance and utilities crowdingEntirE indUstriEs sUccEEd dUE togrEatEr simplicity the bottom. Brands with a clear sense of identity, focused on consistent experience and communications,Having established the inextricable link between came up the big winners. Simple brands are simplysimplicity and industry categories in 2010, we took aeasier to understand. They live longer in memory. Theymuch deeper look at the meaning of simplicity within minimiseor at least dont add tothe complexitydifferent industries in 2011.bedeviling peoples lives.6 7. Global Brand Simplicity Index: 2011GlobalSimple can be harder thancomplex: You have to workhard to get your thinkingclean to make it simple.But its worth it in the endbecause once you get there,you can move mountains.Steve Jobs7 8. thestate ofsiMPlicityglobal 8 9. Global Brand Simplicity Index: 2011relationshipsLove or work, simply?turns out that theres nothing like friends andfamily after all. When it comes to relationships,respondents the world over found family and friendseasier to handle than the complications they facedat work and in romance.Friendship was first in simplicity in the without interfering in the running ofChina had the largest overallhaving mixed results at best: manyUnited States, India and the United their daily lives.relationship spread with family ratedrespondents see as many complicationsKingdom followed by family, while family far simpler than all other relationships.in their interactions with the sector asGPS has made life less complicatedwas No. 1 in China, Germany and the they do simplifications.and volatile, too, giving direction to On the global scale, respondents saidMiddle East, followed by friendship.the many who might otherwise findtheir relationships get simpler with ageLinkedIn is one of the bottom globalRomance was seen as the mostthemselves confused, lost and angry. with the notable exception of the Middle brands in terms of simplicity, butcomplicated of all relationships in theEast where relationships are simpletheres a real opportunity for the brandWith GPS, there are no disputes in ourU.S., India and the Middle East, and from 1839 and 60 and older, but are that succeedswhere LinkedIn has family during long car rides, says onework was next in line. China, Germanyseen as less simple from ages 4059. failedto find a new way to simplify German respondent.and the UK had an easier time withthe workplace. Finally, men find relationships slightlyromance than work.Social networks cut both ways, making simpler than women in all countriesThe same is true of romance.it easier on the one hand, to connectTechnology was seen as a key except the UK.with faraway and long lost friends, but The brand that manages to notconnector in keeping relationshipsalso contributing to complexity with Whats the lesson for brands here? only bring people together but alsosimple through ease of communicationan implied demand to be always help them navigate their romanticwith photo and video sharing reinforcing First, that there is still work to be doneon, respond faster, and maintainrelationships in a more simplifiedthose personal ties. and money to be made in simplifyingif not create whole clotha separatefashion could be the next Facebook. relationships. Our findings on social One UK respondent was particularly online persona. Others found life Assuming, of course, that Facebook media, a new category and set of grateful for text messaging, saying, complicated by their inability to doesnt get there first. brands we added to this years study,Text has been the best thing as I canseparate work from their personal show that social media brands are keep in touch with my daughters life because of technology. 9 10. Global Brand Simplicity Index: 2011Results in:SimpleComplexUnited Statesand India 1. Friendship2. Family 3. Work 4. RomanticGermanyand China1. Family2. Friendship 3. Romantic4. WorkUnited Kingdom 1. Friendship2. Family3. Romantic4. WorkMiddle East 1. Family 2. Friendship3. Work 4. Romantic 10 11. Global Brand Simplicity Index: 2011technologyThe generational impact of technologyWherever we went in the world, the Technology even made them feel safer.Familiarity doEsnt brEEd contEmptanswers to our questions about the But concerns and complaints arrived inimpact of technology on simplicity tandem with the acknowledgments. 8.438.43lead to two connected conclusions:8.36technology brings simplicity to ourThe presumed need to be tethered tolives but there is a price to be paidtechnologyto always be on with7.96 7.917.55 7.48 colleagues and friendsfinished first in 7.177.16for progress. the list of most complicating attributesAcross the globe, ease of communications globally. Many saw their time beingwas considered technologys greatest sucked away amid all the texts, emailscontribution to a more simplified life, and virtual social interactions and feltsocial media smartphonewhich was supported by overall results.mp3 player the pressure that came with the higher computerereaderEmail and phone ranked in the top three Simplicity expectations of instant responses andphone tabletEmailsimplest technology products.gps the ramp-up time necessary to keepRespondents agreed that technology pace with new improvements.saved them time, saved them money,Despite all the hype about the iPad and the rapid growth of themade their lives more efficient, more tablet market, computers and email still rank simpler than tablets.convenient and gave them greater simplicity WitH agE?access to a wider world. While younger generations and retireesThey sang the praises, too, of the think technology greatly simplifies theirsimple virtues of online banking lives, older generations still working findand shopping. They were grateful technology most challenging.for technologys ability to speed upTechnology has made my life easier comparedhousehold chores and stay connected to my mothers and grandmothers. I give fullto others. They appreciated GPS-aided ability to get home faster incredit to technology when it comes to takingthe first place.care of my baby, my husband and myself. 11 HoUsEWiFE in tHE middlE East 12. Global Brand Simplicity Index: 2011GlobalGlobal: Simplicity by Industry1000Simple 900+ cross the globe, the search engine, InternetAretail and mobile phone industries are creatingsimple experiences through usable technology 800and communications. 700 600 500 400Restaurants/Entertainmentgeneral (department/big box) 300restaurants/EntertainmentElectronics/AppliancesTravel and Hospitality General Insurance 200 Health Insurance general insuranceHealth insurancecable providers Retail Banking internet search Shipping/Mailmobile phonesretail bankinginternet retail shipping/mail Heath/beautysocial media Automotiveautomotive Electronics appliancescar rental 100 bookinggrocery FashionComplexTelecom UtilitiesFitness Utilities Hotels news Media Retailtrainair 0The Simplicity Score is a normalised composite based on ratings on key elements of our Simplicity LabTM methodology, including stated 12simplicity, ease of understanding, transparency, caring, innovation and usefulness of communications as well as how painful or not typicalinteractions are. 13. Global Brand Simplicity Index: 2011GlobalThe Simplicity Premium can increase profits for many industries.Depending on the industry, between 7 percent and 19 percent of peopleare willing to pay more for simpler experiences and interactions. Theamount they are willing to pay varies by industry, but is significant.For simpler experiences, people would pay:>6.3% >6% >5.5% >5% moremoremore more Restaurants/ Travel:Train Media:InternetSearch Travel:Hotels SocialMediaEntertainment NewsMedia Travel:Air Retail:Grocery Retail:Fashion Retail:Fitness Retail:Health/BeautyUtilities Retail:General Retail:Internet AppliancesElectronics Automotive Shipping/Mail HealthInsurance Telecom:MobilePhones 13 14. Global Brand Simplicity Index: 2011GlobalGlobal: Brand Simplicity Index129:LeaderS, 3058: MIddLe-OF-THe-PaCK, 5987: LaGGardS% Change% ChangeRankBrand BSI from 2010 RankBrand BSI from 2010 1Google955 NA20Dell775 10% Automotive 2Amazon8855% 21Audi7728% RetailBanking 3IKEA882 NA22SUBWAY765 -5% Electronics/Appliances 4McDonalds8672% 23Yahoo!764 NA GeneralInsurance5Apple 861 25% 24Toyota7625% 6Nokia 8591% 25Puma759 NA HealthInsurance 7Pizza Hut 8535% 26HP758 12% Media 8Marks & Spencer 844 14% 27Holiday Inn 7569% Restaurants/Entertainment 9LG843 NA28iTunes755 NA Retail10Starbucks 8423% 29YouTube 753 NA Shipping/Mail11Carrefour 8367% 30Canon 7536% Telecom 12Siemens 8314% 31H&M 7510% Travel13Sony827 10% 32Honda 748 23% Utilities 14Samsung 814 11% 33Hilton741 NA15C&A 809 NA34BMW 738 31%16Walmart 807 -1% 35Philips 738 NABrands that were rated in at least two17Motorola786 NA36Nike735 -2%geographies have been ranked in the 18Boots 786 -2% 37Adidas732 -2%Global Brand Simplicity Index.19KFC 781 -5% 38Debenhams 7316% 14 15. Global Brand Simplicity Index: 2011GlobalGlobal: Brand Simplicity Index (continued)129:LeaderS, 3058: MIddLe-OF-THe-PaCK, 5987: LaGGardS% Change% Change% ChangeRank BrandBSI from 2010 RankBrand BSI from 2010 RankBrand BSI from 201039 O2 729 NA58Reebok683-10% 77Bupa588 NA40 Burger King729-12% 59Google+ 683 NA78Ramada583 NA41 eBay 7256% 60Bosch 679 NA79Budget5721%42 Vodafone 7231% 61DHL 679 12% 80AXA 5620%43 Facebook 715 NA62ZARA6776% 81Hertz 548 -4%44 Volkswagen 713 12% 63ING 676 NA82LinkedIn540 NA45 Microsoft712 NA64Gap 6757% 83Peugeot 538 26%46 BlackBerry 710 NA65Marriott675 NA84Allianz 531 -1%47 Mercedes-Benz707 NA66Twitter 674 NA85Enterprise522-11%48 easyJet7063% 67Nissan664 17% 86Ryanair 473-12%49 Expedia706 NA68Ford660 10% 87GE459 NA50 Sephora704 NA69Best Western648 NA51 Topshop697 NA70Panasonic 638 NA52 MSN694 NA71Sky 632 NA53 Haier691 NA72Avis624 13%54 HSBC 691 48% 73Virgin Mobile 602 NA55 UPS689 10% 74Bing601 NA56 FedEx6872% 75Europcar599 14%57 Citibank 685 41% 76Groupon 589 NA 15 16. Global Brand Simplicity Index: 2011GlobalGlobal Top 10 BrandsIntuitive experiences and design, both online and in-store,are notable attributes of the brands in this years top 10.1BSI: 955 2BSI: 8853BSI: 8824BSI: 8675BSI: 861GoogleisourclearwinnerinIftheresonewordthatdescribesThankstostrongpositionsinMcDonaldsowesmuchofAdmiredforitslaser-sharpthisyearsGlobalBrandSimplicity AmazonitseasyeasytoGermany,ChinaandtheMiddleitshighrankingtoitsabilityto focusonconsumer-friendlyIndex,dominatingeverypart find,easytoorderandeasyEast,theSwedishretailerlands consistentlydeliveronconsumer products,ApplescoresbigoftheworldexceptChina(wheretoreturn.ThatsthetrifectaforintheNo.3spotglobally.expectationswhilestillkeeping pointsforeverythingfromdomesticbrandBaidustillreigns). successintheworldofonlineIKEAsbrandidentityisasthebrandrelevant.Withever-productfunctionalitytotargetedItshouldcomeasnosurprise.retail.ButAmazonhasmoveduncomplicatedasitsproductsexpanding,healthiermenuadvertisingthatconsumersGooglessimpledesignboth furtherstill.Fromitsperchassimple,inexpensiveandwithoptionsandofferingstailoredtofindbothrelevantandintuitive.containsandunleashesamind- theworldslargestonlineretailer acleareyeondesign.IKEAslocaltastes,thefastfoodgiantElegantandsimple,Applemakesbogglinguniverseofinformation, withthelargestselection,the advertisingfollowsthesame hasnowturneditsattentiontotechnologymorethaneasyandopportunitiesandservices.All brandhaslaunchedastringofconsistent,appealing,easy-to- itsphysicalspace.Inspiredbyfuntouse,ithasbecomeago-towithoutoverwhelmingtheuser.electronicdevices(beginning shoppattern.ThecompanytakesApple,McDonaldsstoresaroundstatussymbol.WhileoursurveyCapitalizingonitssuccess,withtheKindle)showcasing itallthewaytothenuts-and- thecountryareintheprocessofwasconductedpriortotheGooglehasrunitsubiquitous itscommitmenttosimple, boltslevelwhererespondentsrevampingtheirdesignstoreflect passingofApplefounderSteveonlinethreadthroughnews, intelligibleelectronicsaswellasa findassemblingIKEAproductsamoreupscale,modernfeelallJobs,hislegacylivesonthroughproductsandadvertisingandwillingnesstocompeteinthetechgenerallyeasierthanthoseofofwhichcouldleadtoaface-offawaitedproductssuchasiPhonemadeitalllookdeceptivelysimple. spacewithitsowninnovativeand itscompetitors.withPaneraandStarbucksinthe 5andiPad3,duetohitstores price-competitiveproducts. nearfuture. in2012.16 17. Global Brand Simplicity Index: 2011GlobalGlobal Top 10 Brands (continued)6BSI: 8597BSI: 853 8BSI: 8449BSI: 843 10BSI: 842Nokiasucceedsinsimplicity Clearpromotionsperceivedas Marks&Spencerwinswith Intheworldofelectronics,Starbucksredesigneditsiconicthankstoacombinationof honestbyrespondentsplace clarity.Easy-to-understand consumersgetampedwhenlogothisyear,droppingthetextusability,awiderangeof PizzaHutinourTop10.Around promotions,regularmailings, simple,usablegoodsseamlessly encirclingitsmarkandsignalingproductsandbroaddistribution theworld,consumersplaced diverseproductlinesandeasy-integratewiththeirlives.And thebrandstransitionintoainemergingmarkets.InPizzaHuthighontheSimplicityto-read,well-designed,in-storeLGdeliversthegoodsacrossworldthatofferedsomethingdevelopingcountries,NokiaIndexpointingtocompellingdisplaysearnthebrandatop fivedifferentcategories morethanjustcoffee.Changeranksatornearthetopofmobile offers,reliableserviceandaspotonthisyearsSimplicitymobilecommunications,home ornot,respondentsconsistentlyphonebrands.Inthedeveloped streamlineddeliverysystem.Index.Customersalsoappreciateentertainment,homeappliance,praiseStarbucksforitseasy-to-world,wherethereisagreaterThecompanycontinuestothehighqualityandreliability airconditioningandbusiness understandprices,reliableservicesaturationofsmartphones,itsenhanceallaspectsofconsumer ofthebrandscarriedbythe solutionsthatrespondentssayandpromiseofcommunityacrossadifferentstory:Appleistheinteractionswiththebrand,from retailchain.theyintuitivelyunderstandwhile stores.Thebrandscommitmentclearleaderinthecategory.With in-storediningtoquickfeed-alsoappreciatingLGssuperior toglobalsocialresponsibilityandhopesofpenetratingthemarketback.Alladdinguptosimplecustomerservice.transparencyconcerningfutureandcompetinginthecategory, andsmartmovesforalarge goalshasgarneredconsumerNokiahasrecentlyintroducedpizzachainoperatinginahighly supportandpeaceofmind.newproducts(i.e.,Lumia)withcompetitiveindustry.featureslikefree,multichannel17globalmusicstreaming. 18. Global Brand Simplicity Index: 2011GlobalGlobal Bottom 10 BrandsCar rental services and insurance cluster at the bottom ofthe Brand Simplicity Index.78 79 80 81 82BSI: 583 BSI: 572BSI: 562 BSI: 548 BSI: 540RamadaallbutcheckedoutofItsnocoincidencethatthree ThoughAXAwasactuallyDespiteitslowglobalrank,the ConsumerscomplainthattheglobalcompetitionwithaoftheBottom10brandsarerankedasthesimplestinsurance launchofHertz-On-Demand LinkedIn,theworldslargestsimplicityscorewellbelowthecarrentalcompanies.With companyglobally,itstillranks thecarrentalbrandsanswer business-orientedsocialindustryaverage.Ontheother fuelsurcharges,complicated intheBottom10overall,losing toZipcarcontributedtoa networkingsite,invitesthemhand,theWyndhamHotelGroupinsurancefeesandcoveragepointsforitsconvolutedpolicy strongperformanceinthetomeetandgreetbuttoooftenraiseditshipprofilethisyear plansthatoverlapwithcreditcardstatements.Whenitcomes U.S.whereitledthepackbyaimpedestheirabilitytodoso.withanewselect-servicebrand, benefits,complexityisclearlytosimplicityandinsurance,considerabledistance.Aretooling Unfocusedcommunications,TrypbyWyndham,andadealanindustrything.Simplifiedthereseemstobenoprotection ofthebusinessmodel,withat aclutteredinterfaceandsitethatgivesWyndhamexclusive languageandpricingcouldbeafromcomplexity.leastoneeyeontheroadto upgradesthatcomplicateorfranchisingrightstoultracooltruepointofdifferentiationwithin reinvention,couldjump-startthepreventinteractionarefrequentlybrandsDreamandNight.theindustry.brandglobally. cited.ThoughLinkedInfinishedRamadacouldbenefitfromanearFacebookandTwitterinsimilarstrongertietotheup-and- theU.S.,itwasmuchfurthercomingmasterbrandbeforetheirbackinthepackintheUK,andbrandgoeslightsout.significantlytrailedFacebookinIndia. 18 19. Global Brand Simplicity Index: 2011GlobalGlobal Bottom 10 Brands (continued)83 84 85 86 87 BSI: 538 BSI: 531 BSI: 522BSI: 473 BSI: 459PeugeotwasonlyslightlybelowAtouchbelowtheglobalindustryEnterprisejustcouldntmake TheIrishairlinemadeheadlines SeeingGEatthebottomoftheindustryaverageintheUK,averageandabottomfivefinish agoofitwithU.S.consumers, withsomeofitslacartepricing: thegloballistwasabitofabutinIndia,itwasanotherstory show,theresreallynothing trailingfarbehindindustryleader chargingforbathroomprivileges,surprise,astheirEcomaginationentirely.LeadingbrandsTVS simpleaboutinsuranceorAllianz. HertzalongwithAlamo.Inthestanding-room-onlyseating,afatplatformhasbeentheenvyMotors,MarutiSuzukiandHero AstheworldslargestinsurerbyUK,however,EnterpriseactuallytaxforoverweightpassengersofmanyacompanyfromaHondaleftPeugeotinthedust.revenueoutsideChina,Allianz cameoutontop,leadingbyanda$63chargetoprintcorporatepositioningstandpoint.putsitsnameonadizzyingadiscernibledegree.Still,itboardingpassesattheairport.However,whenwedugalittlearrayofinsurancecompaniesitwasntenoughtopaveoverThecompanysaysthemeasuresdeeperintotheresults,wehascobbledtogetherthrough industry-widecomplexities aremeanttoreframeconsumersawhowthebreadthoftheiracquisitionsandmergers. thatcausecustomerconfusionexpectationsandkeeptheircostsportfolioishavinganegativeandfrustration. low.Butrespondentssayitsnotimpactonperceptions.GEs thatsimpleandarentbuyingthecommunicationswereperceived rationaletoooftenfoundinthe asunclear,withpeoplenotsure fineprint. astowhatproductstheywere reallyadvertising. 19 20. Global Brand Simplicity Index: 2011GlobalSimplicity still paysBuilding on the trend from 2010, investing in a stock portfolio based on simplicity continuesto beat the major indexes. A portfolio made from the publically traded top 10 globalsimplest brands outperforms and is less volatile than the major indexes.80%Simplicity PortfolioS&P60% DowFTSE% growth of index/portfolioDAX40%20%0%20%09 09 9 9 9 09 9 09 09 9 9 09 09 09 9 0 0 10 0 10 10 0 0 10 11 11 1 1 1 11 1 11 11 1-0 r-0-0-0-0-0-0 r-1-1 l-1-1-1-1 r-1-1 l-1-1n- b-n-g-p-c-n-b-n-g-p-c-n-b-n-g-p-arararay lyctovayctovayct Ju Ju Ap Ap ApDeDeJaJuJaJuJaJuAuAuAu FeSeFeSeFeSeJuMMMOOOMMMNNThe Simplicity Portfolio is comprised of the publicly traded stocks of the top 10 brands from the Global Brand Simplicity Index.20 21. thestate ofsiMPlicityby indUstryIn 2010, we saw that the industry category had a strong impact onhow simple or not a brand was perceived to be. In 2011, we have delveddeeper into individual industries, uncovering the simple, the complexand the plain ugly. Within industries, media and technology reign andinsurance fails; however, in each industry, there are winners and losersto learn from. 21 22. Global Brand Simplicity Index: 2011 Electronics/appliancesTechnology, where the drive to simplify is a primal force,is not without its paradoxes. As a symbol of elegant simplicity, AppleSitting near the bottom of this years ranked first among electronics andglobal list is Panasonic with its appliances companies in the Globaleverything-but-the-kitchen-sink product Brand Simplicity Index and the 5th most line that puts televisions, phones, simple brand overall. DVD players, cameras and more into one virtual bin. Out of 25 industries, electronics and appliances ranked 4th and 5th Apple remains almost ruthlessly simple uctsrespectively, contributing six brands in that regard and, in doing so, has Prodlogy in the top 20 (even more than quick-been able to not only charge a premium,no service restaurants). Apples success but have customers wear the expense ech lE Fo rT and its ranking is a function of more as a badge of honor.mp than its iconic devices. Its also due in Its a compelling dynamic where simplesi = large part to its consumer experience equals status. focus in all aspects of its business from point of purchase to packagingUs to service.UK rEspondEnt: at On the one hand, the steady streamApple is clear about their products,what they do and what they stand st of innovation continues to make itfor and, in the end, deliver what easier for consumers to watch, listen, they promise. share and communicate. But many companies in acquisition mode have expanded their profiles and portfolios and incorporated such a sea of product models and technology types that many customers feel lost as they attempt to navigate their way to a simple purchase. 22 23. telecomIt makes perfect sense to us that a truly simple industrygave birth to something called the smartphone.Mobile phones (handsets and providers)Nokia offers both smartphones and phones, finishing 13th out of 25 globallyranked No. 3 globally in the field of 25standard mobile phones.)in our survey. While mobile phones areindustries. In fact, 78 percent of global seen as a simple offering, the world ofBlackBerry was seen as least simple inusers found smartphones contributed cable TV is perceived as being morefour out of the six regions of the worldto simplicity in their lives. Thats an complex. And with the rise of onlinewe surveyed where it was repeatedlyimpressive performance for reasonstelevision content, many consumers arecalled out for being too difficult to usealmost as numerous as available apps. reconsidering the cable packages theywith too many features.frequently see as overly complicatedOnce gaudy, oversized and less thanBlackBerry, said one respondent in theand overpriced.dependable, mobile phones have beenUnited Kingdom, is just not intuitiveslimmed down, their problems trimmedfrom a users point of view.down making them the ubiquitous,blacKbErry Fail:indispensible standard for millions.While traditional mobile tele-communications still lead as carriers,Of the telecom brands, BlackBerry skype is a veryIn the beginning, mobile phones werejust phones. A simple concept.theres new, aggressive competitionwas seen as least simple in four outof the six regions of the world wefun and convenientNow theyre smartphonesgame-coming from Internet voice andcommunications as well as smartphonesurveyed, where it was repeatedly service that allowscalled out for being too difficult tochangers with a seemingly endlessarray of communicative and enter-apps enabling Internet calls.use with too many features. my family to havetaining possibilities.Microsofts recent purchase of Skypehas only upped the ante.long distance,This despite the variety of operatingsystems, brands and options thatIn the U.S., the only country where face-to-faceusually contribute to customer confusionSkype was included as an individualbrand, Skype was far out in front ofcommunication.and frustration in other industries.the packincluding its next closest its a very simpleApple was the world-beater with competitor, Verizon.Nokia a close runner-up. (AppleThe cable television industry as a wholeprogramme to useoffers smartphones exclusively;fared poorly when compared to mobileand its free. 23 24. Global Brand Simplicity Index: 2011 social mediaSocial networks not only dominate the conversation, theyvechanged the very nature of conversation and the global culture.In the U.S. some 22.5 percent of onlinerespondent puts it: social media LinkedIn hugged the bottom of the listtime is spent on a social network or complicates my life by creating new in every region. The service, originallyblog, according to the Nielsen Company.social norms, requiring me to becreated as a sharable database ofAnd, by years end, Deloitte predictsconstantly connected to all my friends, business contacts, gets low scores formembership in social networks couldespecially people that in the past Iusability with an unwieldy combinationtop 1 billion worldwide. would not have kept in touch with.of user-to-user connectivity issues Additionally there is a constant pressure including specialised groups withThe oldest social media brand on the to keep up your digital image, as itvarying membership rules.Global Brand Simplicity list, LinkedIn, can be seen by professionals, peersis just eight years old, a pioneer in and others.the sector along with the now all-but-forgotten Friendster and Myspace.Unlike the news media, social media is dominated by global brands.The social media concept has always Respondents in almost every regionseemed simple enough: users gather weighed in on the same brands,at one online address to share theirthoughts, photos, videos, links and lives, including Facebook, YouTube, Twitterthough social media usagebringing friends, colleagues and family and LinkedIn with China, again, by older generations has standing apart. (Facebook, YouTubeup to date as they please in a virtual increased in the past few and Twitter were banned in 2009,world connected (at least theoretically) though the country has its own Twitteryears, those over 50 findto the real world. and Facebook clones.) it contributes much lessYet as an industry, social media ranks YouTube (now owned by Google) was to simplicity than thoselow globally on the simplicity scale found to be simplest globally, with under 30.coming in 17th out of 25 industries Facebook followingearning its placewe surveyed. The complicating factor despite an onslaught of changes toisnt, as it turns out, the mechanics of the service raising the ire of users whothe medium as much as the demands complain of interference and worryof participationboth on time and about compromises to their privacy.in creating social pressure. As a U.S.24 25. Global Brand Simplicity Index: 2011 internet searchInternet search has become such a fundamental aspect of modernlife that it finished first among all industries by a wide margin inthis years Global Brand Simplicity Index.FocUs onIn every country we surveyed, with theIn every country but China, Googlenotable exception of India, Internetwas seen as the most simple Internetuse exceeds the worldwide average search brand, dominating its categoryof 30.2 percent of the population. It in stunning fashion. And even in China,tHE UsErshould be noted, however, that Indiaswhere Google has faced issues rangingcomparatively paltry 8.4 percent, which from government censorship to claimspulled down the worldwide average,of hacking, Google still plays host totranslates to more than 100,000,000 19 percent of the countrys searchesusers. (In Western countries, by the way, second only to Chinas homegrownANDALLabout 80 percent of people are online.) Baidu, which respondents there foundto be the simplest.It didnt take much searching to comeup with a winnerGoogle far outpacedThe industrys impressive performanceits closest rival Yahoo! and a barely-speaks plainly and powerfully to theELSEWILLthere Bing. benefits of simplicity. Online advertisingrevenues were up 10 percent from Clearly, Googles guiding principle:Q3 2010 to Q3 2011 (excluding Asia),Focus on the user and all else willbucking the economic anemia plaguing follow, has paid off and then some.many, if not most, industries globally. One of our survey respondents wasFOLLOW particularly detailed in their appreciation, saying: Googles programmes suchgooglE rEigns: as Gmail or YouTube are more intuitiveGoogle was seen as the most simple to use than other similar programmes.Internet brand in every country but The design is not cluttered, and thegooglEs gUiding principlE China, where homegrown Baidu was company seems to be constantlyfound to be the simplest brand. working to make their products better and easier to use. 25 26. Global Brand Simplicity Index: 2011 news mediaTheres good news for news media in 2011 even in the bad news. Consumers see the mediawhether inin the U.S., BILD in Germany and print, broadcast or onlineas relativelyDNA in India, claimed the top spots simple, placing it 6th out of 25 industries for simplicity with readers citing clean as compared to its 4th out of 20 finish online interfaces. in 2010. In the UK, the BBCthe worlds largest For a market sector that has experiencedbroadcasterwas also the No. 1 a sea change in the way it conducts media brand when it came to simplicity. business in recent years, that kind ofBusiness news outlets such as the consistency sends an affirming message. Financial Times (UK) and the Wall Street Journal (U.S.) were considered the Online news consumption, not surprisingly, most complex. continues its climb. Nevertheless, the Even though onlineglobal view is that broadcast news is the simplest way to consume news, Social media also ranked very low as a news channel. There were some publications arewhich holds true across lines of gender,exceptions to the rule around the world: on the rise, broadcastage, income, education and community in virtually every part of the globe with in the Middle East, where it ranked 3rd; and in India and China, where it tV is still the simplestthe notable exception of China, where news aggregators come in first. ranked 4th. way to get the news.Online publications, by contrast, finish tHE simplEst Way to gEt second in most regions (except, again, tHE nEWs: in China) but show powerful potential Those under 40 find online publications when used in combination with other to be the simplest way to get the news mediaparticularly as it applies to more than those over 40, for which traditional print newspapers. When broadcast TV is still the clear winner. consumers were asked to rate individual media brands, newspapers with an online presence such as USA TODAY26 27. Global Brand Simplicity Index: 2011 retail The online retail industry has made its case for simplicity, and most of the world is literally buying it. It placed No. 2 among all industries inIf there is a sticking point for online this years Global Brand Simplicity Index. retail its in the return process, which,by a wide margin, is seen as the most For many offline and multichannelcomplex part of doing business. Freemost simple retailers retailers, simple can be a challenge, asshipping at Zappos, a U.S. brand, borne out in the ranking of retail grocery 1. Amazonaddressed many of those concerns at No. 10; general retail (i.e., mega- stores) at No. 11; retail fashion at No.based on comments from respondents2. IKEAand higher simplicity ratings. Amazon3. Marks & Spenceramazon has 14; retail health and beauty (drugstores) at No. 21 and retail fitness at No. 23.also won simplicity points when4. Carrefouraccurategraded on its return process, but the The simplicity of online retail seen incompanys wide variety of retailers and 5. C & Aproductevery market except the Middle East, came down to a basic side-by-sideaccompanying shipping/return policiesadded an unwanted level of complexity.descriptions,comparison among a broad range ofIn the U.S., multichannel retailers The key is avoiding real or virtual clutter choices with ease of purchase as itsan easy-to-use strong finish.have a simplicity advantage when itcomes to in-store returns, but whenand offering customers a clear path inand out of a purchase.website, a Germany delivered particularly highthere are disconnects between onlineResponses in the fashion retail category scores across the board for Internetgreat returnand brick and mortar inventories, made it apparent that both Gap and retailers with Amazon coming out onconsumers complain that it complicatesZARA were seen as unfocused, resultingpolicy, helpfultop and consumers proving especially responsive to 1-click ordering andthe process.in a complicated brand identity.customer service what they considered clear, accurateThe issue of choice can cut both ways.While Trader Joes and IKEA simplifyAs new transaction models andplatforms continue to emerge, Internet product descriptions. Shoppers aroundand a full linethe world also gave very high markswith streamlined selections, Walmartand Amazon win points for variety.retailers continue to set the industrystandard in simplicity, but apparentlyof products. to online retail on the simplicity scale, suggesting a strong future upside forGroupon however was consideredstill have a few lessons to learn aboutcomplex with respondents citing anthe customer experience from their the category.overload of choice as the main reason.brick and mortar counterparts.27 28. Global Brand Simplicity Index: 2011retailShopping online is simplestuntil you try to return something, that is. In-store shopping is still simpler for returnsand finding the highest quality items; online wins in simplicity for most other attributes. 8.4%* Matching products/services with my needsAdvice on what to purchase 1.0% 11.8% Ease of purchase+Understanding product/service 6.6% 36.4% Offering the best range of choicesin-store shopping Finding the highest quality 19.4%online shopping 41.4% Product comparison Ease of return process 62.4% 48.8% Securing the best price 64.6% Price comparison 28*% lead of one shopping medium over another 29. Global Brand Simplicity Index: 2011 retail bankingTo anyone following retail banking over the past year and the negative storiesabout excessive bonuses to bad debt to the absence of transparency, it probablycomes as a surprise that the industry held its own in our survey.In fact, the simplicity score for retailof simplicity, understanding bankUnderstanding fees is the most complex.banking rose 11 percent this year feeswhen and how much they willcompared with last yeargood enough be chargedwas at the bottom of theComplexSimpleto keep its 16th place finish in a survey simplicity list. Using an ATM, on the0 1 2 34 56*7 89 10field that grew from 20 to 25 between other hand, was the most simple. 8.472010 and 2011. Using an ATMSo while the focus on simplifying andHow to account for the boost in the automating the transactional pieces of7.89Simplicity Index? the customer experience is having aUsing online bill paymentpositive impact, the communicationsPart of the answer is branding.7.78are still sorely lacking. Transferring money from one account to anotherOn a global level, HSBC, whichThats money left on the table.positions itself as the worlds local 7.59bank, scores much higher than its onlyGetting one view of all my accountsother real global banking competitor, 7.06Citibank, and shows some noticeable, Getting assistance at a branchpositive spikes in India and the UKComments from survey respondents6.94 Understanding how much interest Ive earnedshow consumers engaged by HSBCssimple, global message: that issues can 6.83be addressed and questions answeredGetting an answer when I speak to customer serviceanywhere and without the burden 6.56of unnecessarily complex financial Deciding which accounts/products are best for my needslanguage and information.6.39Not that retail banks are, by any means, Finding an answer to a specific account-related question onlinein the clear.6.23When we asked respondents to rateUnderstanding when Ill be charged fees or how to avoid feesa set of banking processes in terms *Anything below 6 is considered complex. 29 30. Global Brand Simplicity Index: 2011 general insuranceAs was the case in 2010, insurers in 2011 find themselves mired inan economic bog, impeding their abilities to address consumer concerns.Demand for general insurance remains rated SALAMA came in for a drubbingGetting a quote is the most simple.depressed amid uncertainties about with complaints focused on confusingglobal recovery, while low investmentcategories and unclear rates.ComplexSimplereturns, market volatility, Europes0 1 2 3456* 78910 In the U.S., every single touchpointsovereign debt crisis and a near-perfect 6.23 from quotes and online queries tostorm of natural disasters further bedevilGetting a quote policy documentswere rated asthe industry. complex and filing a claim was 5.95And once againby a wide margin considered nightmarishly so every- Understanding my billinsurance finished dead last on thewhere but Germany.5.75Global Brand Simplicity Index, Insurers were generally successful inGetting an answer to a specific question when speaking to customer serviceidentified as the least simple industry providing quotes and bills that peopleby unhappy customers in almost 5.65 could understand, but failed to make aevery region surveyed.Choosing an insurance company policy change or answering a specificAs insurance companies are, for thequestion a simple matter. 5.64most part, regional entities, the onlyFiling a claim In response, some in the industryglobal players in our survey were AXA appear to be considering a move in5.60and Allianz, and they received similarFinding an answer to a specific question online the right direction. According toaverage ratings globally but varied insurance industry consulting firm 5.57widely in perceptions of simplicity from Novarica, most U.S. insuranceMaking a change to my policycountry to country. Allianz, for example, companies plan to increase theirwas seen as the simplest insurance5.56 investments in technology in 2012 tobrand in the UK but the least simpleSelecting the right coverage for my needs better facilitate consumer interactions.in Germany.5.44Insurers received the highest ratings Understanding the payment of a claim (coverage, deductible)in the Middle East where Abu Dhabi 5.31National Insurance Company faredUnderstanding my policy documentsparticularly well, but the much lower-*Anything below 6 is considered complex.30 31. Global Brand Simplicity Index: 2011 Health insuranceSimplicity is on life support in the healthcare industry.Health insurance finished 24th in aaccounts for the fact that most peopleUnderstanding your insurance cover is most complex.field of 25 in this years Global Brandfind it easier to get an answer to aSimplicity Index.question by making a phone call ratherComplex Simple than searching online. Unless, of 0 1 23 45 6* 78 9 10The diagnosis was worse still in the course, they run into the oft-mentioned7.34United States and India, where health complication of poor customer service.Filling a prescriptioninsurance was dead last. One pattern worth noting was the6.76Theres a reason people who survive revelation that consumers felt theirScheduling a doctors appointmentcomplicated surgeries often complain healthcare interactions (findingthat dealing with insurance companies 6.65 physicians, scheduling appointmentsis far more debilitating. The notoriousFinding a physician and filling prescriptions) became simplerexpenses are painful enough, but for the further they got from insurers. And6.41many patient-consumers, the before- in the U.S. and most regions, there Contacting your health insurance providerand-after complexities of coverage just was little difference seen between oneadd insult to injury. 6.38 carrier and another. Getting a referralWhile technologys lifesaving benefits Complexity exacts a heavy toll on bothare regularly incorporated into advances 6.07 consumers and providers with more Understanding the billin healthcarefrom medicine to the hours and money devoted to weavingoperating theaterhealth insurers have 5.94 through an endless maze of rules,failed to harness technologys power inUnderstanding treatment options regulations, contracts and policies atways consumers see as basic to their the expense of patients. The trend has 5.56simple well being. become so pronounced it has spawned Getting preauthorisationOr as one of our respondents soan administrative management industry5.44succinctly put it: Health insurance iswithin the industry.Filing a claimhard to understand. Period. 5.31Next to nothing, it seems, is simple Understanding what is covered by my insurancein health insurance, which no doubt *Anything below 6 is considered complex.31 32. Global Brand Simplicity Index: 2011 UtilitiesShort-circuited by a complex mix of technology, governmentpolicies and consortium control, the utilities industry isgenerating a lot of complexity.It came in 22nd out of 25 industries in changes and investments while loweringthe Global Brand Simplicity Index. In prices at the same time.many of the countries surveyed, utilitiesMergers and acquisitions, oil and consumers fear thatis a strictly local affair with hundredsof gas and electric utility companiesgas price fluctuations, and economic environmental impact willdownturns that siphon off jobs furthercompeting for a connection to homescomplicate the utility industry picture, take a back seat to profit.and businesses.clouding understanding, obfuscatingIn fact, with little overlap in providers brand identity and raising fears andbetween countries, there isnt a single suspicions. As with other low-ratedutility company on the Global Brand industries like insurance, unclear orSimplicity Index list.complex billing charges and practicesfed consumer feelings of mistrust.Adding to an already complex industryprofile are the wider concerns coming Tapping into technologythose smartfrom consumers on energy issues meters which predict and respondranging from climate change to cost to consumer supply and demand, forand security of supply. Commentsinstanceand providing straightforward,from respondents reflected significanttransparent information, could lead toskepticism relating to suppliers in be the big simplicity jolt the industryderegulated markets where consumers needs going forward.fear environmental impact will take aback seat to profit motives.Nevertheless, it should be noted thatmany of those same consumers aregenerally unwilling to alter their energydemands. Instead they looked toutilities, energy companies and policymakers to make the renewable energy32 33. Car RentalGlobal Brand Simplicity Index: 2011 565simplicity index travelTravel and hospitality showed some get up and goin the Global Brand Simplicity Index.Train 566 simplicity indexTwo out of five categoriesbooking and In the U.S., Southwest Airlines breezedhotelsrose to Top 10 finishes in 2011.by the competition, miles ahead of the Hotels 721 United/Continental merger. SouthwestsSimplicity, alas, appeared to stall when no-frills pricing without hidden feesit came time to put travel into motion. is a possible factor in its simplicityAir travel finished in the 12th position success, though stripped-down pricingglobally with train travel significantly didnt necessarily translate to highersimplicity indexlagging at No. 19 and car rental scores everywhere.pulling up the rear at No. 20. European discount airlines easyJetIts clear that consumers equate and Ryanair, for instance, came in withsimplicity with brands they seethe highest and lowest global scoresas transparent and honest, while respectively based on the ease ofcompanies bogged down by complexitynavigation of their websites, customerwere viewed as untrustworthy.service and aboveboard pricing.As hospitality at its core is aboutpersonal relationships, technologyplays a very specific role in thetravel experience. It begins with onlinebooking, continues to expedited check- Air695ins and ideally keeps the customergrounded and confident that everything Booking726is as it should be.The goal from the consumer point ofsimplicity indexview is to have minimal interaction withstaff on travel details and maximumtime relaxing with friends, family or ontheir own. simplicity index 34. Global Brand Simplicity Index: 2011automotive shippingMaturity breeds simplicity in the autoSnail mail, even the kind that arrivesindustry but as a whole, it seems,overnight, just cant keep up with thetheres a lot of growing up to do.digital world.The appetite for luxury cars, according undisputed leaders. Global players The industry straggled in at No. 18to AT Kearney, appears to be waning like Volkswagen and Honda blew byglobally. Survey respondents foundand the call for cheap and easy their domestic counterparts in China.everything from the size of envelopestransportation is on the rise. to calculating postage impedimentsWith automakers eager to cash in on to simplicity. And, too, there wereIn emerging markets, however, carsthe new crop of growth markets around issues with on-time delivery, complexremain powerful indicators of socialthe globe, no obvious breakout strategy pricing and government interventionstatus. With BRIC countries at thehas emerged yetbeyond the need to and regulation to further drag down theforefront, global demand is expectedkeep things simple. industrys Simplicity Index.to grow dramatically in the comingyears as rising incomes create the nextThe three global brandsUPS, FedExgeneration of automotive owners. and DHLwere packed so tightly together that no clear winner wasThe industry finished 15th overallglobally. Buoyed by strong ratings inin Western declared globally.mature markets, global brands faredbest in simplicity.markets, cheap It should be noted that some of the regions we surveyed were withoutToyota and Audi were winners inand easy national mail services and/or did notthe category, receiving high markstransportation typically deliver to home addresses.for both their content and the avenuesIt appears, however, that DHL got thethey chose for communicationis on the rise. message recently. Its new Speed ofwith customers. Yellow advertising campaign appearingin 19 American and 42 global marketsPeugeot, however, sputtered andnow declares that DHL Express is:lagged behind its multinational peers. Excellence. Simply Delivered.Domestic brands and those workingwith outside manufacturers led theway in IndiaTVS Motors, MarutiSuzuki and Hero Honda were Indias 34 35. thestate ofsiMPlicityUnitEdstatEs 35 36. Global Brand Simplicity Index: 2011United StatesThe longer you live in the United States, the simpler your life becomes.But unlike some of the rest of the world, make work simpler, they will reapwhere simplicity follows a similar lifecycle, U.S. respondents say theres athe benefits. Simplicity = LoyaltyAnd if they can make a simple dentcomplexity balloon payment that comesin healthcare, theres no place to go 79.4%due between ages 45 and 54. Whichbut up, because as an industry healthis why its always good to have friends.insurance is at the very bottom of theFriendship is considered the mostSimplicity Index in the U.S. (with Aetnasimple of relationships in the U.S.,ranked as the least simple brand).followed by family, work and romance,the latter of which is a long way fromRespondents clearly feel better whensimple, according to our findings.they go shopping onlineeconomicwoes or not. Internet retail was namedSo brands stand to gain when theythe most simple industry in the U.S.make their products and services fastthanks in large part to such brands asand easy for human interaction. OurAmazon, Zappos and iTunes.study shows there are opportunitiesfor improvement within social media inparticular. Although even a bank brandWhen it came to simplifying technology,only in the U.S. did the Global of people in the Unitedcould see substantial benefits from asimplified means to make it easier forPositioning System (GPS) find its wayto the top of the list, ahead of email states are more likelypeople to talk to one another aboutfinancial matters.and personal computers.Of special note: Netflix was picked as to recommend aBut in this American life, one of themost complicating factors by far, basedthe most simple brand in our survey,which was conducted post-rate hike but simpler brand.on our survey, is work. Those that have pre-Qwikster (albeit short-lived).it are pressed for time and those thatdont deal with the complications of ajob market under duress. If brands can36 37. Global Brand Simplicity Index: 2011United Statesindustry spotlightsHealth Insurance General Insurance Retail BankingHealthcare is in poor shape. Theres little disagreement There was little assurance to be found in general Returns on retail banking in this years index showedon that point in the U.S. Health insurance finished last insurance in the U.S. based on the industrys growth, but not enough to bump the industry out ofin industry standings. disastrous showing at No. 24 in a field of 25.the bottom half of the pack with a No. 15 ranking.Respondents saw little difference between one carrierWhile most others in the category failed, GEICO Investments in simplicity, like making check depositsand another, although they did find that their lives succeeded by cultivating an approachable brandpossible via smartphone, paid off handsomelyalways seemed simpler the further they got fromrooted in simplicity and low prices. Staying on for CHASE, which was picked best in class byinteractions with the insurer when filling a prescription, message with its ubiquitous gecko mascot, itrespondents. Among the simplifying factors cited:scheduling a doctors appointment and findingrepeatedly came to one basic conclusion: Fifteen an easy-to-use website with 24/7 access, convenienta doctor the most simple of health-related tasks.minutes could save you 15 percent or more onbranch locations and short wait times on telephone car insurance. help lines.Aetna complicated consumer lives the most, accordingto our survey, with respondents citing challenges to They were far less appreciative of Progressive, Citibank received the lowest U.S. ranking in retailunderstanding payment exceptions and navigatingdespite its award-winning campaigns. When it came banking and was singled out as confusing in its brandthe companys website. United Health Group was the time to buy Progressive, respondents found thearchitecture as well as its products and services.most simple by comparison, making it the best of process too complicated. For starters, the insurerConsumers complained that Citi has too manythe worst. offers a variety of coverage and sells policies bothdivisions, and that rates and rules were confusing. directly to the consumer and through a large network of independent agents. Mega-insurer Nationwide had next to nobody on its side, coming in last in a group that performed poorly as a whole. With a web of subsidiaries offering products from homeowners insurance to life insurance, from annuities to credit cards, the company had respondents tied up in confused knots. 37 38. Global Brand Simplicity Index: 2011United Statesindustry spotlightsNews Media RetailSocial Media If there ever was a time when the media took aAmericans are obviously getting the hang of onlineTurns out the virtual world of human interaction is atjust the facts, maam approach to news, it is surely shopping and then sometaking advantage of easy least as complicated as the real onemaybe even long gone.price comparison, free shipping and a streamlined more so. Social media was No. 19 in the field of 25 selection process funneled through customised industries in the U.S. based on simplicity.With news, entertainment and information streaming communications, viewing the process as preferablein from hundreds of sources online, on television, overApparently, tending to imaginary crops and livestock, to traditional avenues for their purchases.the phone and in print, separating fact from fiction ismaintaining hundreds of Facebook friendshipsclearly no easy task. News media finished out of the All noteworthy as the National Retail Federations 2011 birthdays and allisnt as simple as it seems.Top 10 in 2011ranked 11th out of 25.Holiday Consumer Intentions and Actions Survey, Keeping in touch has our respondents tangled up conducted by BIGresearch finds that close to half (46.7USA TODAY, was first in simplicity by a wide margin, with issues of privacy, commerce, old news [those percent) of holiday shoppers plan to buy onlineupwith respondents reacting positively to its clean, friends from high school come back to haunt them] nearly 6 percent from last year.colorful design and easy-to-read, easy-to-understand and pseudo-news [fed randomly online through friends,execution in print and online. When it comes to mobile shopping, young adultspostings and social media sites]. present the biggest opportunity for retailers. AccordingThe Wall Street Journal, which was seen as having22.5 percent of online time is spent on a social to the same survey, Americans aged 1824 are thea distinct target audience that embraced complex network or blog, according to The Nielsen Company, most likely to use their smartphones (72.2%) andconcepts, finished at the bottom of the news and the frenzy of competition to capitalise on that time tablets (86.4%) to shop for holiday items this year.media pile.is leaving consumers confused and vulnerable. Netflix (post-rate hike but pre-Qwickster) was seenRespondents also found Fox News complex forSmall wonder that YouTube, where respondents as the simplest brand in the U.S., with Amazon indifferent reasons, citing a biased account of the news can just click and enjoy without commitment, was close proximity. Perhaps this proves that a brand likeand an ideological bent toward business interests considered the simplest U.S. social media brand Netflix can survive and even command higher pricesand money. A lack of transparency, said someconsiderably ahead of Facebook, even further from (think Apple) when it has a clear, simple, purpose andrespondents, further complicated issues by creatingTwitter and a world away from LinkedIn. message, but endangers its very existence when thereconfusion about facts. is confusion and a lack of transparency. Groupon, while lauded for its price-saving efforts, finished last in the rankingsthe product of extra steps and limitations in its transactional process.38 39. Global Brand Simplicity Index: 2011United StatesUnited States: Brand Simplicity Index1-42:LeaderS, 43-84: MIddLe-OF-THe-PaCK, 85-125: LaGGardS% Change % Change% ChangeRank BrandBSI from 2010 Rank Brand BSI from 2010 Rank BrandBSI from 2010 1 NetFlix9106% 23 Expedia 698 NA45 Samsung647 11% 2 Google 875 NA24 Walgreens 689-8%46 Bing 645 NA 3 Amazon 8499% 25 Comfort Inn 687 2%47 Rite Aid Pharmacy643-3% 4 Target 817 NA26 Sony683 NA48 Holiday Inn640-3% 5 Publix 814 NA27 Burger King 682-17% 49 YouTube638 NA 6 UPS8089% 28 Old Navy680-14% 50 Nike 632-4% 7 SUBWAY 804 -5% 29 Albertsons680-9%51 Canon631-5% 8 McDonalds 788 -6% 30 Victorias Secret 679 3%52 Kmart631 NA 9 Whole Foods Market 787 16% 31 MSN 677 NA53 Hertz629 52%10 Pizza Hut772 NA32 Days Inn677-1%54 Adidas 625-3%11 Starbucks761 -4% 33 Kroger672-15% 55 H&M625 NA12 Trader Joes 757 -5% 34 Ford672 4%56 Google+621 NA13 IKEA 743 NA35 Toyota671 4%57 Yahoo! 620 NA14 Southwest Airlines 7273% 36 USPS669-5%58 The New York Times 615 NA15 Walmart724-11% 37 CVS/pharmacy666-8%59 Whirlpool615 NA16 Dunkin Donuts 721-12% 38 Safeway 665-15% 60 Yelp 615 NA17 Honda7194% 39 eBay664 2%61 FedEx610-12%18 USA Today7098% 40 Skype 659 NA62 Macys 610-18%19 Zappos.com 705 21% 41 Apple 659 13% 63 HP 606-8%20 KFC703 -8% 42 Groupon 652 NA64 Gap604-5%21 Hilton 702 35% 43 GEICO 650 1%65 Marriott 602-10%22 iTunes 698 14% 44 PeaPod648 NA66 Chevrolet598-7%39 40. Global Brand Simplicity Index: 2011United StatesUnited States: Brand Simplicity Index (continued)1-42:LeaderS, 43-84: MIddLe-OF-THe-PaCK, 85-125: LaGGardS% Change % Change% ChangeRank BrandBSI from 2010 Rank Brand BSI from 2010 Rank BrandBSI from 201067 Maytag 593 NA89 State Farm534 13%111 AT&T 437-18%68 Orbitz 591 NA90 Amtrak532 -1%112 U.S. Bank437 NA69 Reebok 586-16% 91 DIRECTV 526 -7%113 ZARA 437 NA70 Sephora585 NA92 The Wall Street Journal 517 NA 114 Alamo421-26%71 AllState 585 22% 93 KAYAK 516 NA 115 Enterprise 421-24%72 Budget 582-18% 94 Best Western510-21%116 Citibank 406 40%73 MSNBC579 NA95 DHL 509-12%117 United/Continental 402 NA74 Verizon5745% 96 Farmers 5052%118 Time Warner Cable389 NA75 Priceline.com571 NA97 Sprint503-35%119 Nationwide 382 NA76 Progressive5701% 98 Panasonic 500 NA 120 LinkedIn 368 NA77 CNN5685% 99 Haier 489 NA 121 UnitedHealth Group 337-13%78 Dell 566-16%100 Chase 4837%122 HUMANA 316-31%79 Sears561-21%101 Microsoft 483 NA 123 Comcast305 NA80 Dodge561 -5%102 American Airlines 481 24%124 CIGNA279 1%81 T-Mobile 561-21%103 Bank of America 479 NA 125 Aetna217 NA82 Avis 560 44%104 Wells Fargo 472-16%83 Ramada 556 NA 105 JetBlue Airways 471 -8%84 Motorola 556 NA 106 US Airways4683%85 Volkswagen 555 NA 107 Delta Air Lines 465 20%86 GE 550 NA 108 BlackBerry454 NA87 Facebook 548 NA 109 Twitter 448 NA88 Fox News 542-14%110 DISH Network441-20%40 41. Complex Simple 0100 700200 500 800300 400 600 9001000 Retailinteractions are.internet retailgrocerygeneral (department/big box)Heath/beautyFashionFitness Restaurants/Entertainmentrestaurants/Entertainment Mediainternet searchnewssocial media Electronics/AppliancesElectronicsappliances Shipping/Mailshipping/mail United States: Simplicity by Industry Travel and HospitalityHotelsbookingtraincar rentalairThe Simplicity Score is a normalised composite based on ratings on key elements of our Simplicity LabTM methodology, including statedsimplicity, ease of understanding, transparency, caring, innovation and usefulness of communications as well as how painful or not typical Telecommobile phonescable providers Retail Bankingretail banking Automotiveautomotive UtilitiesUtilities General Insurancegeneral insurance Health InsuranceHealth insurance Global Brand Simplicity Index: 2011United States41 42. Global Brand Simplicity Index: 2011United StatesThe Simplicity Premium can increase profits for many industries.Depending on the industry, between 3 percent and 15 percent of peopleare willing to pay more for simpler experiences and interactions. Theamount they are willing to pay varies by industry, but is significant.For simpler experiences, people would pay:>5% >4.4% >4% >3.5%moremoremore moreRestaurants/Retail:FashionRetail:Fitness Entertainment Retail:GroceryGeneralInsuranceRetail:GeneralSocialMediaMedia:InternetSearch NewsMedia Travel:HotelsElectronics Appliances Travel:TrainRetail:InternetTravel:AirTelecom:MobilePhones Telecom:CableProvidersAutomotiveHealthInsuranceWhile people will pay more across all industries, they are willing to pay the most in the industries above.42 43. Global Brand Simplicity Index: 2011United StatesUnited States Top 10 BrandsThis year, retail, restaurants, media and shipping brandsare represented among the top 10 simplest brands.1BSI: 9102BSI: 8753BSI: 849 4 BSI: 8175BSI: 8146BSI: 8087BSI: 8048BSI: 788 9 BSI: 78710 BSI: 77243 44. Global Brand Simplicity Index: 2011United StatesIn the United States, businesses are leaving more than$20.1B on the table.Simplify and you shall receive.The health insurance industry could stand to capture themost, more than $4.3 billion to be precise, through clearer, understandable communications.Health InsuranceRetail: Grocery Retail: Internet+ $4.3 billion + $1.6 billion+ $1.1 billionElectronicsAutomotive Utilities+ $2.3 billion + 1.4 billion + $1 billionRestaurants/EntertainmentRetail BankingTelecom: Mobile Phones+ $1.9 billion + $1.4 billion+ $905 million44 45. Global Brand Simplicity Index: 2011United Kingdomthestate ofsiMPlicityUnitEdKingdom45 46. Global Brand Simplicity Index: 2011United KingdomFrom their relationships with each other to their interactionswith brands, its all, they say, just a little too complicated.Plainly, you do need a stiff upper lipSimplicitys perpetual bottom dwellerif you live and work in the Unitedgeneral insurance fared no better in Simplicity = LoyaltyKingdom, because based on the results the UK than it did elsewhere in theof our Global Brand Simplicity Index, world, coming in dead last. But it was 87.7%theres really very little respondents find UK gas and electric company npowersimple about their lives there. that came in for the real drubbing,voted least simple of all brands andAgainst the backdrop of a growing,roundly criticised for what consumersmulticultural population, our surveyconsidered deceptive messagingfinds the workplace a focal point of UKand pricing.complexity. Accordingly, people whowork full-time said their lives were mostcomplex while retirement was seen asgod saVE tHE mEnan oasis of simplicity.British women find most relationshipsOverall, UK women find their relation-simpler than British men, especiallyships significantly simpler than mendo, and though both genders say itswork, romance and family.of people in theeasier to navigate friendships than workrelationships, men view work as more United Kingdom are more likely tocomplex than women do.Assessing industry, consumers sayInternet retail is simplest in the UK (asit is in many other regions we surveyed) recommend awith Google topping all brands insimplicity and Amazon, John Lewissimpler brand.and Tesco following close behind. 46 47. Global Brand Simplicity Index: 2011United Kingdomindustry spotlightsRetail Banking UtilitiesGeneral InsuranceRetail banking returns were low this year, coming in No. You have to drill down to the bottom of the rankings inIn the world of simplicity, general insurance is one of18 out of 25 categories and below the global average.the UK to find the utilities industry, which finished 24th the few industries thats guaranteed to be seen as in our field of 25.complicated by consumers. It finished last amongAccording to our respondents, First Direct was firstall industries globally, and it finished last in the UK,in simplicity, awarded points for its personal touchBritish Gas was rated as simplest in the category,too25th in a field of 25.a quality now considered a table-stake in UK banking.though in an industry with such sub-par numbers, it hardly qualifies as a victory.Jargon garbles communications, feeds confusion andAt the heart of the simple touch? Simple comm-mistrust, adding to the already complicated nature ofunication.First Direct always answers the phone The industry-wide poor showing will come as nothe industry even in best-case scenarios.with a real personand never sends you to auto-surprise to UK consumers given Prime Minister Davidmated phone systems that we all hate, read oneCamerons recent call to cut energy consumptionStill, there has to be a better way, and the industrycharacteristic response. and a summit with the countrys six biggest energy apparently has yet to find it based on responses to suppliers pushing them to drop their prices. our survey. On the downside, Santander, the UKs least simple bank brand, paid a penalty in our survey for poor Against the backdrop of profit margins enjoyed byAllianz was seen as the best of the worst in the UK for communication and customer service. Consumers energy companiesat the expense, many believe, ofat least showing signs of trying to simplify the brand. complained that Santander had long, complexthe publicthe industrys relationship with consumersBut last-place Aviva took some extra knocks for its terms and conditions; full of gotchas and what one couldnt get much more complicated.confusing pricing plans and poor customer service. respondent said was a customer service so appalling it Unless, of course, youre talking about npower, whichdeserves special mention. was the lowest-rated brand among utilities and a company respondents found especially vague and deceptive in its messaging and pricing. 47 48. Global Brand Simplicity Index: 2011United Kingdomindustry spotlightsTelecom News MediaTravelAs it stands, based on our survey, mobile productsThe headline on simplicity and media in the UK isnt Hotels topped the list with a No. 2 ranking in ourand providers were seen as simpler in the UK coming a tabloid-worthy shocker. Eyebrow raising, perhaps,field of 25 industries in the UK, closely followed byin 10th out of 25 industries with cable finishing 19th. given the scandal-ridden backdrop this year with booking at No. 3, and air at No. 4. Car rental, however,revelations of bribery, hacking and professional sputtered in at No. 16 and the train sector pulled inMobile provider Three was top of the sector, reapingdisgrace that brought Rupert Murdochs News of the at dismal No. 20.the rewards of a new streamlined visual identity andWorld to its knees.offerings paired with technical improvements and Noteworthy within the findings was a poor showingstatus as the fastest 3G network in the UK. The fact is: UK media did just fine, finishing a by Ryanair. Consumers were unambiguous aboutrespectable No. 9 out of 25 industries surveyed. the acute disconnect they felt between the carriersTalkTalk got a lot of static that left it at the bottom promises of cheap and simple air travel and theirof the list of mobile carriers as respondents found There were, however, signs of the same old story. actual experience. Many respondents thoughtcomplicating factors beginning with a lack of clarity As consumers have complained for years, a paid Ryanairs offers were intentionally complexaon a product level. subscription shouldnt be a complicated process, but common reaction when communications lacksomehow it remains a sticking point for the industry.Apple, the top-rated mobile phone in the UK wastransparency and directness.Paying the price for that perception (or reality) in themiles ahead of last-place BlackBerry as wasUK are the Financial Times and Sky. The two outletsConsumers had no such problem with top hotelVirgin Media on the cable side compared with thetied for last place in the media category. finisher Travelodge and its straightforward offers.undeniably underwhelming BT, the latter despite anoteworthy investment in online advertising and Not so for broadcast TV channels with the BBC ratedAir travel brands in general scored above averagebrand campaigning.the simplest brand by a comfortable margin. The outlet in simplicity, with Virgin Atlantic taking the lead forwas lauded for delivering on its brand promise and brand messaging and transparent communications.providing information that was easy to understand There were only two contenders in the UKs traveland digest. booking category, but their differences were distinct. Lastminute.com graded significantly higher than the below average Expedia, which suffered from complicated messaging and presentation of information.48 49. Global Brand Simplicity Index: 2011United KingdomUnited Kingdom: Brand Simplicity Index1-41:LeaderS, 42-82: MIddLe-OF-THe-PaCK, 83-123: LaGGardS% Change % Change % ChangeRank BrandBSI from 2010 Rank Brand BSI from 2010 Rank Brand BSI from 2010 1 Google 970 NA23 The Sun 776-5%45 Canon 683 NA 2 Amazon 9417% 24 Holiday Inn 774 6%46 Hilton682 9% 3 John Lewis 917 26% 25 KFC 767 NA47 Honda 680 NA 4 Tesco8976% 26 Audi755 10% 48 BMI 676 67% 5 Travelodge 8646% 27 Gap 747 NA49 Superdrug 676-12% 6 Lastminute.com 8538% 28 Burger King 743-10% 50 Virgin Mobile 672 28% 7 Premier Inn853 13% 29 Renault 740 NA51 Primark 669-15% 8 McDonalds 8512% 30 Toyota729 NA52 Samsung 666-2% 9 BBC8443% 31 First Direct722 NA53 Topshop 664 NA10 Apple830 26% 32 New Look713 NA54 Royal Mail663 5%11 Asda 828-10% 33 Volkswagen702 14% 55 BMW 661 35%12 Waitrose 819 10% 34 Channel 4 701 2%56 Virgin Media661 8%13 Co-operative 8151% 35 Sony701 NA57 Bosch 658 NA14 Nandos806 14% 36 iTunes701 NA58 Metro 654-6%15 PizzaExpress 8014% 37 Starbucks 700 NA59 YouTube 653 NA16 Virgin Atlantic8009% 38 Groupon 700 NA60 Dell652 7%17 Marks & Spencer7915% 39 BHS 694-3%61 H&M 652-15%18 Sainsburys789 -9% 40 HSBC691 51% 62 Peugeot 650 26%19 IKEA 787 NA41 British Airways 691 17% 63 Nike650-2%20 LOVEFiLM 782 NA42 eBay688-3%64 Google+ 643 NA21 Expedia777 18% 43 Three 687 NA65 Facebook640 NA22 Boots776 -4% 44 Nokia 687 NA66 Ford639-1% 49 50. Global Brand Simplicity Index: 2011United KingdomUnited Kingdom: Brand Simplicity Index (continued)1-41:LeaderS, 42-82: MIddLe-OF-THe-PaCK, 83-123: LaGGardS% Change% Change % ChangeRank BrandBSI from 2010 Rank BrandBSI from 2010 RankBrandBSI from 201067 easyJet6383% 89 Virgin Money 573 NA111 Santander409-10%68 Panasonic638 NA90 Guardian 573 NA112 BT 386-8%69 The Times637 NA91 Parcelforce Worldwide566 -9% 113 Bing 385 NA70 Twitter634 NA92 MSN566 NA114 British Gas369 NA71 Channel 5632 NA93 HP 557-13% 115 GE 368 NA72 ZARA 6324% 94 Hertz555 61% 116 AXA PPP Healthcare 362 18%73 Debenhams629-12% 95 Nissan 551 NA117 Ryanair358-18%74 O2 626-12% 96 Lloyds TSB 547 32% 118 E-on 352 NA75 Philips625 NA97 ING541 NA119 Bupa 335-30%76 Enterprise 624 28% 98 Avis 533 14% 120 LinkedIn 319 NA77 Adidas 615-10% 99 BlackBerry 526 NA121 EDF Energy 290 NA78 Radisson Edwardian 612 50%100 Budget 526 -5% 122 npower 275 NA79 Reebok 608 NA 101 NatWest5254%80 Selfridges 608 -1%102 Sky519-12%81 Vauxhall 605-13%103 The Financial Times5194%82 Allianz599 NA 104 Europcar 518 54%83 Yahoo! 596 NA 105 TalkTalk 507 -6%84 Orange 593 -4%106 Barclays 4992%85 Microsoft585 NA 107 UPS492 NA86 Mercedes-Benz585 NA 108 The Royal Bank of Scotland 427 NA87 FedEx581 10%109 DHL423-29%88 Vodafone 581 -7%110 Aviva4171%50 51. Complex Simple 0100 700200 500 800300 400 600 9001000 Retailinteractions are.internet retailgrocerygeneral (department/big box)FashionHeath/beautyFitness Travel and HospitalityHotelsbookingaircar rentaltrain Restaurants/Entertainmentrestaurants/Entertainment Mediainternet searchnewssocial media Electronics/Appliances United Kingdom: Simplicity by IndustryappliancesElectronics Telecommobile phonesThe Simplicity Score is a normalised composite based on ratings on key elements of our Simplicity LabTM methodology, including statedcable providerssimplicity, ease of understanding, transparency, caring, innovation and usefulness of communications as well as how painful or not typical Automotiveautomotive Shipping/Mailshipping/mail Retail Bankingretail banking Health InsuranceHealth insurance UtilitiesUtilities General Insurancegeneral insuranceGlobal Brand Simplicity Index: 2011United Kingdom51 52. Global Brand Simplicity Index: 2011United KingdomThe Simplicity Premium can increase profits for many industries.Depending on the industry, between 3 percent and 17 percent of peopleare willing to pay more for simpler experiences and interactions. Theamount they are willing to pay varies by industry, but is significant.For simpler experiences, people would pay:>5% >4% >3.8% >3.3%moremoremoremore Restaurants/SocialMediaRetail:General Travel:Booking EntertainmentAppliancesAutomotiveShipping/MailElectronicsRetail:Fashion Telecom:CableProvidersTelecom:MobilePhonesTravel:HotelsTravel:Air Retail:GroceryTravel:TrainMedia:InternetSearchHealthInsuranceWhile people will pay more across all industries, they are willing to pay the most in the industries above. 52 53. Global Brand Simplicity Index: 2011United KingdomUnited Kingdom Top 10 BrandsThis year, retail, travel, media and electronics brands arerepresented among the top 10 simplest brands.1 BSI: 970 2 BSI: 9413BSI: 917 4 BSI: 897 5 BSI: 8646BSI: 853 7BSI: 8538BSI: 851 9 BSI: 844 10 BSI: 83053 54. Global Brand Simplicity Index: 2011United KingdomIn the UK, businesses are leaving more than2.8B on the table.Simplify and you shall receive. The general insurance industry could stand to capture the most,more than 506 million to be precise, through clearer, understandable communications.General InsuranceAutomotive Health Insurance+ 506 million+ 295 million+ 119 millionRetail Banking Restaurants/Entertainment Retail: Fashion+ 460 million+ 235 million+ 94 millionUtilitiesTravel: Air Travel: Hotels+ 419 million+ 152 million+ 75 million 54 55. thestate ofsiMPlicitygErmany 55 56. Global Brand Simplicity Index: 2011GermanyGermans place such importance on simplicity, theyve triedto make it mandatory.You have to hand it to a country likeInsurance in Germany is anotherGermany, which boasts the lowest unhappy story entirely, and where the Simplicity = Loyaltyunemployment rate of any Western idea of mandatory simplicity comes in.country we surveyed, but whose While recent government regulations 68.2%unemployed rate their lives as actually require insurers to streamlinesignificantly simpler than their their communications on pricing andworking brethren.products to customers, complexity still plagues insurance. Out of 25 industries,Government policies, which provide health insurance finished 24th andsocial welfare benefits, (e.g., financial general insurance 25th.assistance and rent) for those out ofwork, account for much of that simpleUtilities provider EWE was at the bottomlife. Only retirement, in fact, is seenof the brand list. Like other companiesas simpler.in the sector, respondents pointed to its less-than-transparent billingInternet search takes the top spot in the and highly unsatisfactory customerindustry, finishing first in simplicity in ourfield of 25 on the back of highly efficient, service experience. of people ineasy-to-use search brands such asGoogle. Just a click back is Internet bEing UnEmployEd in gErmany germany are more likely to recommendretail and Amazonthe top brand in is too simplEsimplicity in Germany overall. How people view unemploymentGerman consumers viewed basictechnologies such as computer and varies a lot by country. While it is seen as the most complex in the U.S., UK a simpler brand.emails as the most helpful in simplifyingand China, Germany sees it as thetheir lives. Ranked last were e-Readers, second simplest occupation.whose slow adoption by consumersis affected by high prices and limited56availability of devices and e-books. 57. Global Brand Simplicity Index: 2011Germanyindustry spotlightsUtilities General Insurance HealthcareThe utilities industry in Germany doesnt look like Germany realised several years ago that it had aWhen something that should be simple becomesits plugged into simplicity at all. It came in 22 outsimplicity problem in its insurance industryso muchcomplex, theres usually something wrong, and basedof 25 industries. so that in 2008 government regulations officially on the results of our Global Brand Simplicity Index,required insurers to provide consumers with a succinct, theres something clearly amiss in the healthcareOne significant event was the governments about-easy-to-understand, single-page description of theirindustry in Germany.face in the wake of Japans crisis at Fukushima earlierproduct with clearly defined pricing.this year and the announcement that all of GermanysGermanys state-run healthcare system, whichnuclear power plants will be phased out by the end of Despite the rules and regulations, the industry involves both government and private health insurers,2022. The public is much in favor of the end to nuclear landed at the very bottom of the simplicity industryhas many respondents in a state of confusion andpower in Germany, with energy companies fiercelyrankings this year, finishing 25th in a field of 25. In complexity as health insurance there finished 24thopposing the plan.fact, respondents put understanding my policyout of 25 industries.documents dead last for simplicity among theStill, respondents complained more about companyBKK Mobil Oil was voted by far most simple in itseight interactions we evaluated.communications and interactions than energy policy category while insurer DAK was a distant last. Possiblythe sense that the lights were on but there was Insurers are clustered close together top to bottom contributing to DAKs lowly rankings was its rolloutnobody home when consumers came knocking. with AXA and R+V Versicherung virtually tied for theof additional fees to customers. In contrast, BKK hastop spot while Allianz, the countrys largest insurer,expanded its service offerings but didnt raise prices.RWE shone brightest, with EnBW and E.On alsosits at the bottom. Respondents characterise Allianzreceiving a few glowing returns and simplicityApparently DAK was plagued like its counterpartsas untrustworthy and some getting the sense thatpoints for customer service and availabilityaround the world with the inability to offer customersthe company conceals its strategy. This stands inand responsiveness. direct and unambiguous answers to basic questionsmarked contrast to the companys marketing efforts,like treatment options and pre-authorisation.Things were darkest for EWE, which was at the which emphasizes its efforts to be a trusted partnerbottom of the energy barrel and complained that for customers.the changed [nuclear] policy burdens EWE, whilerespondents complained about EWEs confusingcontract messaging. It is noteworthy that EWE isthe only utility provider offering triple play services(Internet access, phone and television), which canresult in more complex interactions with consumers.57 58. Global Brand Simplicity Index: 2011Germanyindustry spotlightsAutomotive Social MediaRetail BankingMore+better+faster doesnt necessarily equal simple. Maybe Mark Zuckerbergs social media sensation gets Retail banking is getting more complicated. ThisAnd in Germany, the technology driving innovationmore face time, but in Germanyand around much of in spite of recently passed legislation requiringand the countrys world famous auto industry actuallythe globeconsumers look to YouTube for simplicity. comprehensible and easy-to-understand productpushed the sector into the Global Brand Simplicity In fact, there was a world of difference in Germany,information sheets, which many banks haveIndex ditch. It finished 20th in a field of 25 industries. where YouTube finished at the top of the Simplicity implemented. The industry finished 18th in our field Index and Facebook ended up on the bottom. As a of 25 in the study.Perhaps its because the relentless churn of upgrades whole, social media finished 20th out of 20 industries.and change is unsettling and complicating to One German banking brand, however, did manage toconsumers and in the auto industry, it touches soWith almost 18 million users, Facebook is actually thestand out above the crowd. ING Diba, though smallermany product areasfrom electronics and motormost visited social network in Germany. Close to 50 in comparison to its competitors, is the Germantechnology to security.percent of Germans online use Facebook and almost banking simplicity leader by a large margin. ING Diba 40 percent of them do so weekly. Recent changes inmight have a smaller corporate footprint, but it wasGerman pride took a heavy hit, indeed, with three of terms, layout and concerns about data protection, viewed as far greater in terms of simplicity based onthe nations six brands rated as below average in the however, have caused significant confusion andits reduced and clear product portfolio as well as itscategory and luxury brand Mercedes-Benz at the very complications among users, contributing to its last clear communications and interactions.bottom of the list with Volkswagen in close proximity. place finish in the social media industry.Mercedes may be considered a premium brand, butCommerzbank found itself at the bottom of thefor the older, not younger generation. Similarly to LinkedIns low performance in othersimplicity rankings in Germany, its stock with countries, Germanys social network for businessconsumers weighted down by complaints ofWhich car manufacturer took the No. 1 spot in professionals, Xing came in near the bottom of social stubborn and inflexible customer service thatGermany, then? Toyota. media brands because of its inability to engage users.complicated the lives of consumers in a way thatThis despite a number of product recalls in the recent some found nerve-racking.past. The reason? Toyota maintains an exceptionalposition in the market based on long-standingcustomer satisfaction, which is closely tied tocustomer expectations about a brand rather than itsabsolute service performance.58 59. Global Brand Simplicity Index: 2011GermanyGermany: Brand Simplicity Index1-42:LeaderS, 43-84: MIddLe-OF-THe-PaCK, 85-125: LaGGardS % Change% Change% Change Rank BrandBSI from 2010 RankBrand BSI from 2010 Rank BrandBSI from 2010 1 Amazon99513% 23 YouTube 833 NA45 Opel 7928% 2 Google992 NA 24 Media Markt 832 NA46 HP 788 NA 3 IKEA931 NA 25 airberlin 8328% 47 REWE 7871% 4 Zalando 922 NA 26 Edeka 831 -2% 48 Deutsche Postbank787 16% 5 Tchibo914 8% 27 H&M 8313% 49 Best Western 785 NA 6 Apple 898 NA 28 DM825 -3% 50 TUI7843% 7 Dell897 NA 29 McDonalds8250% 51 Google+783 NA 8 OTTO89517% 30 Hermes824 7%* 52 Saturn 7833% 9 Toyota894 NA 31 Nokia 824 NA53 Sparkasse783 18% 10 Canon886 NA 32 Lufthansa 8194% 54 Prosieben781 NA 11 iTunes 879 NA 33 C&A 8190% 55 Ford 779 NA 12 eBay 873 NA 34 BKK Mobil Oil 818 23% 56 Nike 7772% 13 Aldi 871-1% 35 Microsoft 817 NA57 Alltours 776 NA 14 Lidl 870 N