In Trends

Retailers earn more by keeping it simple

As consumers wrestle the daily crush of choice and complexity, they want increasingly for the consuming process to be nothing more than simple. They want what no dollar can buy, which is time. So it should not be surprising that 64% of consumers will pay more for simpler experiences.

This is among the findings of the latest Global Brand Simplicity Index by brand-strategy firm Siegel+Gale. Now in its seventh year, the index ranks brands on their perceived simplicity based on an online survey of more than 14,000 people in nine countries.

This year, low-priced German grocery chain Aldi topped the list as simplest brand, followed by U.S. newcomer and rival Lidl. Other high-rankers include Google, Amazon, Netflix, Ikea, KFC, YouTube, McDonald’s and Subway.

SEE ALSO: Clienteling in 2017: the future in-store experience?

All that simplicity adds up to one particular positive for brands that can embody it, and that’s a premium, according to Siegel+Gale. Among the study findings:
  • 61% of consumers are more likely to recommend a brand that is simple
  • 62% of employees at simple companies are brand champions versus 20% of employees at complex companies
  • a stock portfolio of the simplest global brands outperforms the major indexes by 330%

Put simply, brands do not require Rubik’s Cube-like marketing strategies to excel. They may in fact need the opposite. The hook is that simplicity isn’t all that easy to achieve.

Simplicity Rules Of Thumb

That being said, simplicity — in terms of brand experience — is not hard to define. I think a simple brand experience follows three rules:
  • It gives consumers what they want.
  • It is available when and where they want it.
  • It can deliver in three actions or less.

Technology makes these rules fairly easy to achieve. The challenge for retailers is implementing the processes that streamline choice and eliminate purchase steps yet still cater to broad needs. Consumer data, such as from a loyalty program, will aid in this process.

(Source: Forbes)

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