The Global Brand Simplicity Index 2010

Keep it simple.

Everybody says it, but few companies live it.

That’s a shame because simplified business practices lower costs, improve a company’s relationship with its customers, and increases business and profitability.

There is a firm named Siegel+Gale that I’ve written about in this space before – Turning simplicity into your guiding business principle – that takes simplicity so seriously it has created a global brand index that ranks companies based on the simplicity of their products and services.

It’s called the Global Brand Simplicity Index 2010 and it serves Siegel+Gale’s interests well because the firm is in the business of building corporate brands, and it does so based on the central principle that simplicity makes companies more elegant, memorable and motivating.

To create the index, Siegel+Gale surveyed 6,000 people in seven countries to gather perceptions on simplicity and the impact industries and brands have on people’s lives in relation to simplicity. The study rated more than 490 brands that were selected as a representative set that respondents would be most likely to know or use in each country. (To avoid appearing self-serving, Siegel+Gale did not include its clients in the report.)

Bottom line: Companies were ranked based on whether they increase or reduce the stress in our lives.

It turns out that both the U.S. and global indexes are dominated by food-related companies. The top 10 U.S. brands, as rated for simplicity, are:

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

Not surprising to see Netflix at the No. 1 position. The company has built a massive subscriber base and makes renting and returning movies a cinch. Subway also makes things easy with its “Five Dollar Foot Long” campaign, and its customers get to customize their orders even as they watch their subs under construction.

Notice that American companies dominate the global brand index, though many of the names change.

1. McDonald’s
2. Nokia
3. Amazon
4. KFC
5. Burger King
6. Walmart
7. Pizza Hut
8. Starbucks
9. Boots
10. Subway

So what are these brands doing that makes consumers rate them highly in terms of simplicity?

• Communicating directly, clearly and without jargon
• Saving time with increased convenience and accessibility
• Reducing stress by providing savings or value
• Creating ease of use and interactions

The report says: “Tackling complexity has become the great organizational challenge of our time.”

It estimates that U.S. businesses could save $27 billion a year by mastering simplicity. Industries where the biggest savings could be captured are:

• Insurance, $6 billion
• Technology/electronics, $3.4 billion
• Retail/grocery, $2.7 billion
• Banks, $2.6 billion
• Automotive and restaurants/entertainment, $2.4 billion apiece

Here are some of the survey’s other findings:

• The top-ranked brand in the Middle East is Apple
• The No. 1 brand in Germany is Amazon
• McDonald’s is the No. 1 brand in China
• Life is perceived as getting easier with age in the U.S. and Europe – in China and India this doesn’t hold true
• Fast food hasn’t lost its appeal
• Most people consider technology simple

So keep it simple. It pays.

 

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