The Value of Simplicity

Hey, it's a complex world. You need an algorithm to interpret your algorithm. Computers talk to robots in languages only they and their programmers understand. If you have to ask, you probably shouldn't.

All of which suggests that to cut through the clutter, the fear, the uncertainty and the disorientation, simplicity may be the best strategy.

Of course, until recently this was considered an opinion and, in many places, an attitude. But it was not regarded as fact. It was not definitive and there was little or no data - at least that anyone trusted.

But, as the following article explains, that may be changing. An entire business culture has grown up around the benefits of simplicity, especially as it impacts brands and the organizations that create them. Whether this will remain an eternal verity or a passing fancy remains to be seen. Humans, almost all of whom consider themselves experts on marketing, advertising and brands are only to happy to give you their points of view. With the proviso, that they may change without warning. JL

Stuart Elliott reports in the New York Times:

Companies that embrace simplicity win more customers, have customers who are more loyal and can charge a premium for products

WHETHER it is rendered poetically (“Simplicity is the glory of expression”) or pointedly (“Keep it simple, stupid”) Madison Avenue has embraced the idea of simplicity as a marketing tactic, spurred by growing interest among consumers in products and services they believe will make their lives less complicated or cluttered.

A notable example of the trend is an annual report, known as the Global Brand Simplicity Index, that has been compiled since 2010 by Siegel & Gale, the brand and corporate identity consultancy that styles itself as “the simplicity company.” The 2014 edition, being released on Wednesday, expands the report by adding a list that ranks so-called disrupters: new and newish companies like Ally, GoPro, Nest and Uber that seek to upend traditional marketing methods in categories like banking, retailing and transportation.

Siegel & Gale’s interest in simplicity began with a founder, Alan Siegel, who has long called for corporations and government agencies to simplify the way they communicate with consumers and the public. (Mr. Siegel retired from Siegel & Gale in 2012 and subsequently opened another firm, Siegelvision, where he continues to promote simplicity through efforts like a book, “Simple: Conquering the Crisis of Complexity,” that he wrote with Irene Etzkorn.)

 

Simplicity Sells, Survey Says

2014 RANK

2013 RANK

GLOBAL BRANDS

Aldi

1.

1.

Google

2.

3.

Lidl

3.

—

McDonald’s

4.

4.

Netflix

5.

—

Ikea

6.

9.

C&A

7.

7.

Subway

8.

15.

Miele

9.

—

Amazon

10.

2.

UNITED STATES

BRANDS

2014 RANK

2013 RANK

Zappos.com

1.

5.

Amazon

2.

1.

Subway

3.

4.

Pizza Hut

4.

11.

Netflix

5.

2.

Trader Joe’s

6.

12.

Kroger

7.

18.

McDonald’s

8.

3.

Chipotle

9.

—

Dunkin’ Donuts

10.

6.

Source: Siegel & Gale

Mr. Siegel, who is chairman emeritus of Siegel & Gale, “raised us on the mother’s milk of simplicity,” said Howard Belk, co-chief executive and chief creative officer of Siegel & Gale, referring to himself and David Srere, co-chief executive and chief strategy officer.

“One of the pillars of our simplicity story is that simplicity pays,” said Mr. Belk, “in that companies that embrace simplicity win more customers, have customers who are more loyal and can charge a premium for products.”

Mr. Srere added: “We’re in the brand-building business, and our belief is that brands get built on simplicity. In many industries, the default is to say, ‘It’s a complex world,’ but I would politely say ‘Bull’ to that.”

The 2014 edition of the simplicity index is composed of lists that include rankings of global brands, brands in the United States and the disrupter brands, which are based in this country and Britain. On the global list, Aldi, the German-based worldwide discount supermarket chain, took the top spot, as it did in 2013. The Germans must be doing something right in the realm of cut-price groceries, because a second German-based worldwide discount grocer, Lidl, came in No. 3 on the global list; it was not on that list last year.

As it turns out, there are three German companies among the top 10 brands on the global list; the third, the appliance maker Miele, ranks No. 9 this year and, like Lidl, was not on the global list in 2013.

There is a new No. 1 among the United States brands: Zappos.com, the Amazon-owned online shoe and clothing retailer, which rose four places from No. 5 on the same list in 2013. Amazon itself, in first place last year, fell to No. 2 on this year’s United States list.

In first place on the initial list of disrupter brands is GrubHub, followed by, in descending order, Uber, Aereo, Warby Parker, FreshDirect, Blue Apron, Square, Venmo, Seamless and Peapod.

The disrupter list was added, said Brian Rafferty, global director for research insights at Siegel & Gale, because it was determined that although consumers could value brands they consider to be simple, “if those brands are not innovating, they are not rated as highly.”

“A lot of the ratings” that go into compiling the simplicity index “are based on people’s experiences” with brands, Mr. Rafferty said, “and those experiences can change.” For instance, on the United States brand list Netflix fell to No. 5, from No. 2 last year.

“I wouldn’t qualify that as worrisome,” he added, particularly because Netflix did well on the global list, coming in fifth after not being ranked in 2013.

Another element taken into account in devising the simplicity index is consumer sentiment regarding how well or how poorly brands “align what they say to what they do,” Mr. Rafferty said.

“It’s not just about communication, but also the final experience,” he added. “A lot of brands don’t do well because they go out into the market with a lot of promotion but don’t make an effort to make it real.”

The simplicity index is among several annual surveys and reports from agencies about brand values and perceptions that have developed followings. Others include the Best Global Brands report from Interbrand, which like Siegel & Gale is part of the Omnicom Group; the Brand Keys Loyalty Leaders report from Brand Keys; and the BrandZ Top 100 Most Valuable Global Brands report from Millward Brown Vermeer, a unit of WPP.

Another WPP agency, Cohn & Wolfe, on Wednesday is releasing its third annual Authentic Brands report, which evaluates how consumers view brands in “the age of authenticity,” when transparency and truthfulness are crucial contributors to brand performance. The global brand ranked most authentic in the 2014 report is McDonald’s; the rest of the top 10, in descending order, are Samsung, Apple, Carrefour, KFC, Starbucks, Walmart, Google, HSBC and Sony.