Say what you will about the current state of the U.S. economy, but there are still plenty of consumers out there ready to spend their hard-earned money on products and services. The problem for insurers is that, at a time when the airwaves and Internet are flooded with advertisements and pitches galore for policies, potential customers tend to gravitate toward those marketing messages that are the simplest and easiest to understand.
According to a survey released today by global strategic branding firm,
The first annual Global Brand Simplicity Index survey polled more than 6,000 consumers across seven countries to uncover the perceived points of complexity and simplicity in people’s lives, as well as the "Simplicity Premium," the added value people would place on having a more simplified, more intuitive experience with brands in multiple areas of their lives.
Of the 13 industries ranked in the survey, insurance came in dead last in terms of overall simplicity, behind banks and credit cards, and far from the leaders—restaurants/entertainment and retail.
In terms of willingness to pay more for simpler products and experiences, the study found that brands in the health insurance industry stand to gain the most—at an estimated $6 billion.
Across all industries, U.S. consumers are willing to pay 4% to 6% more for brands they believe offer the greatest degree of simplicity. In some countries including India, China and the UAE, respondents said they would be willing to pay up to 8%, or even 10% more for greater simplicity.
“From ‘plain language’ initiatives within the Federal government, to the obvious role of complexity in fueling the financial crisis, there is a growing imperative to simplify communications of all kinds,” says David Srere, Siegel+Gale co-CEO and chief strategy officer. “It’s essential that brands step up to this challenge across all touch-points with consumers.”
Survey respondents said that the U.S. restaurant and retail grocery industries are seen as simplest in their interactions and communications with people. Conversely, the insurance, mortgage and credit card industries are rated as most complex and least clear.
Technology and electronics, while among the simpler industries, ranked as more complex in the United States than in most of the other countries surveyed. For example, technology and electronics is ranked in fourth place for simplicity in the United States, versus ranking first in Middle Eastern countries such as United Arab Emirates and Saudi Arabia, and second in India. Surprising among the survey’s technology findings was the absence of Apple on the U.S. Brand Simplicity Index top 10, with brands such as Canon, HP and Dell ranking higher.
According to the report, The U.S. Brand Simplicity Index scored the top 10 brands as:
1. NetFlix
2. Subway
3. McDonald’s
4. Dunkin Donuts
5. Burger King
6. Walmart
7. Trader Joe’s
8. Kroger
9. Starbucks
10. Old Navy
Of the 102 ranked U.S. brands, insurers claimed the following spots:
58. GEICO
70. Progressive
83. Farmers Insurance
84. WellPoint
85. Allstate
87. State Farm
90. Humana
98. United Health
102. CIGNA
To read the full report,
