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The Cost of Complexity




   Thomas Müller, Global Director Customer Experience, Siegel+Gale   1
About Siegel+Gale




Siegel+Gale is a global
strategic branding firm.




                           2
Our promise


We build world-class
brands through elegantly
simple, unexpectedly fresh
strategies, stories and
experiences.


                             3
42 years 200+ people
An Omnicom company
8 offices
                       4
Pioneers for simplified customer experiences




   EmblemHealth   Quest   IRS      Cox         United Airlines
                                               Mileage Plus




                  5
                                                                 5
Global Brand Simplicity Index


+  An online survey among 6,152 consumers in 7 countries:
+  US N=1,027
   UK N=1,000
+  Germany N=1,000
   Mainland China N=999
   India N=1,011
   Dubai N=532
   Saudi Arabia N=583
+  The sample was recruited to be representative of national
   demographic distributions in each country

                                                               7
Questions we asked
Respondents were asked about:
+    How simple or complex they feel their life is
         –  How this has changed compared to 10 years ago
+    What are the benefits for them of a simpler life
+    Which industries contribute most/least to making their life simpler/more
     complex, including questions on:
         –  Pain of interactions
         –  Ease of understanding of communications
         –  Transparency/honesty
         –  Care about their customers
         –  Innovation/freshness
         –  Usefulness
 +  Which brands have the simplest or most complex communications and
    interactions in relation to their industry peers
         –  Over 100 brands per country were rated
         –  Brands were selected to be a representative set of brands that in-country
            respondents would be most likely to use or have experience of their services
            and/or communications

                                                                                           8
Simplicity is an important quality of life issue
for people around the world




                                                   9
Some of the brands in the lowest ranking
industries have a lot to learn about simplicity

Lowest ranked global and regional industries

 Industry                   Global Brand Simplicity Score               U.S. Brand Simplicity Score
 Utilities                                     580                                          510

 Banking                                       550                                          560

 Credit card                                   430                                          260

 Insurance                                     425                                          355




Note: The maximum score is 1,000. A score of 750 or better is excellent, from 749 to 601 is average and 600 or
less is below average.
                                                                                                                 10
Many of the simplest global brands hail
from the fast food and retail industries




Note: McDonald’s outranked Nokia with a raw score of 853.7 versus 853.5. KFC outranked Burger King with a score
of 826.3 versus 825.7.                                                                                            11
Seven of the top ten U.S. brands are
food-centric—either fast food or retail




                                          12
United States Brand Simplicity Index




                                       13
Brands that fail to provide simpler
communications and experience leave
profits on the table




                                      14
More retail, dining/entertainment and media
brands dominate the German landscape




                                              15
Germany Brand Simplicity Index




                                 16
Between 5% and 15% of German consumers
are willing to pay more for simpler experiences
and interactions.




                                                  17
Simplicity pays




                  18
Implications for brands



                          19
What are the leading brands doing right in terms
of simplicity?

+  Communicating directly, clearly and without jargon
+  Saving time with increased convenience and accessibility
+  Reducing stress by providing savings/value
+  Clarity and simplicity of interactions
+  Enabling consumers to get more from life: deeper
   relationships, easygoing lifestyles




                                                              20
What are the low rated brands doing wrong?


+  Communicating in ways that are hard to understand and/or
   perceived as deceitful
+  Being perceived to intentionally overcharge
+  Being seen as niche or for too select an audience/poorly
   accessible
+  Being found difficult to interact with, having poor customer
   service experiences and/or hard-to-use interfaces




                                                                  21
The 8 ingredients for
     Simplicity


                        22
1. Understand audience needs




                               23
2. Understand business needs




Business decisions   Legal/compliance   Processing and
                                        delivery capabilities

                                         + Production capabilities
                                           and constraints
                                         + Integration of print and
                                           online channels
                                         + Data availability




                                                                      24
3. Plan for alternative delivery channels

Doctor’s report




                                            25
Patient report: iPhone




                         26
                              26
4. Get the structure right – find your modules




                                                 27
Combine your modules into recipes




                                    28
One multi-purpose
template covers 70%
of taxpayer
circumstances
 




                      29
5. Write in plain language




                             30
31
6. Leverage the power of information design




 Paying over time costs you more than paying in full.
 A $62 dinner could cost you:




                                                        32
7. Test with consumers and refine
Before




After




                                        33
8. Plan for customer experience governance
Thank You!


+  Contact info:
   •  Email: tmueller@siegelgale.com
   •  Twitter: tmuellernyc
   •  Full report: http://www.siegelgale.com/gbsi




                                                    36
37

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Thomas Mueller, PLAIN2011 presentation

  • 1. The Cost of Complexity Thomas Müller, Global Director Customer Experience, Siegel+Gale 1
  • 2. About Siegel+Gale Siegel+Gale is a global strategic branding firm. 2
  • 3. Our promise We build world-class brands through elegantly simple, unexpectedly fresh strategies, stories and experiences. 3
  • 4. 42 years 200+ people An Omnicom company 8 offices 4
  • 5. Pioneers for simplified customer experiences EmblemHealth Quest IRS Cox United Airlines Mileage Plus 5 5
  • 6.
  • 7. Global Brand Simplicity Index +  An online survey among 6,152 consumers in 7 countries: +  US N=1,027 UK N=1,000 +  Germany N=1,000 Mainland China N=999 India N=1,011 Dubai N=532 Saudi Arabia N=583 +  The sample was recruited to be representative of national demographic distributions in each country 7
  • 8. Questions we asked Respondents were asked about: +  How simple or complex they feel their life is –  How this has changed compared to 10 years ago +  What are the benefits for them of a simpler life +  Which industries contribute most/least to making their life simpler/more complex, including questions on: –  Pain of interactions –  Ease of understanding of communications –  Transparency/honesty –  Care about their customers –  Innovation/freshness –  Usefulness +  Which brands have the simplest or most complex communications and interactions in relation to their industry peers –  Over 100 brands per country were rated –  Brands were selected to be a representative set of brands that in-country respondents would be most likely to use or have experience of their services and/or communications 8
  • 9. Simplicity is an important quality of life issue for people around the world 9
  • 10. Some of the brands in the lowest ranking industries have a lot to learn about simplicity Lowest ranked global and regional industries Industry Global Brand Simplicity Score U.S. Brand Simplicity Score Utilities 580 510 Banking 550 560 Credit card 430 260 Insurance 425 355 Note: The maximum score is 1,000. A score of 750 or better is excellent, from 749 to 601 is average and 600 or less is below average. 10
  • 11. Many of the simplest global brands hail from the fast food and retail industries Note: McDonald’s outranked Nokia with a raw score of 853.7 versus 853.5. KFC outranked Burger King with a score of 826.3 versus 825.7. 11
  • 12. Seven of the top ten U.S. brands are food-centric—either fast food or retail 12
  • 13. United States Brand Simplicity Index 13
  • 14. Brands that fail to provide simpler communications and experience leave profits on the table 14
  • 15. More retail, dining/entertainment and media brands dominate the German landscape 15
  • 17. Between 5% and 15% of German consumers are willing to pay more for simpler experiences and interactions. 17
  • 20. What are the leading brands doing right in terms of simplicity? +  Communicating directly, clearly and without jargon +  Saving time with increased convenience and accessibility +  Reducing stress by providing savings/value +  Clarity and simplicity of interactions +  Enabling consumers to get more from life: deeper relationships, easygoing lifestyles 20
  • 21. What are the low rated brands doing wrong? +  Communicating in ways that are hard to understand and/or perceived as deceitful +  Being perceived to intentionally overcharge +  Being seen as niche or for too select an audience/poorly accessible +  Being found difficult to interact with, having poor customer service experiences and/or hard-to-use interfaces 21
  • 22. The 8 ingredients for Simplicity 22
  • 24. 2. Understand business needs Business decisions Legal/compliance Processing and delivery capabilities + Production capabilities and constraints + Integration of print and online channels + Data availability 24
  • 25. 3. Plan for alternative delivery channels Doctor’s report 25
  • 27. 4. Get the structure right – find your modules 27
  • 28. Combine your modules into recipes 28
  • 29. One multi-purpose template covers 70% of taxpayer circumstances 29
  • 30. 5. Write in plain language 30
  • 31. 31
  • 32. 6. Leverage the power of information design Paying over time costs you more than paying in full. A $62 dinner could cost you: 32
  • 33. 7. Test with consumers and refine Before After 33
  • 34. 8. Plan for customer experience governance
  • 35.
  • 36. Thank You! +  Contact info: •  Email: tmueller@siegelgale.com •  Twitter: tmuellernyc •  Full report: http://www.siegelgale.com/gbsi 36
  • 37. 37