If I had a pound for every time I’d heard businesses talk about simplifying their customers’ experience! Well, if they had managed to deliver on this not-so-straightforward objective then they would have been able to grab more than a few quid. Apparently, a slice of a massive $86billion would have been up for grabs.
That is the estimated amount of sales that is being missed by companies’ failing to simplify the experience for customers. This is the finding from research undertaken by brand consultancy Siegel+Gale, which has recently produced the latest version of its ‘Brand Simplicity Index’.
It also found that 64% of consumers are willing to pay more for simpler experiences and 61% of people are likely to recommend a brand because it provides such uncomplicated experiences and communications. One more statistic for good measure: as many as 62% of employees are considered brand champions in companies perceived to be simple, whereas it is only 20% for complex companies.
In the Index of the 95 brands surveyed the top five companies found to be delivering the simplest experience are: Aldi, Lidl, Google, Netflix and Ikea. In contrast, the worst performers with the most complex experience for customers are: AXA, Aviva, Bupa, LinkedIn and Avis
The clearest conclusion from this is that the discount food retailers have a massively simple proposition whereas the insurers/financial services firms are quite the opposite. The fact that Aldi and Lidl have been giving their larger grocer rivals the run around in recent years suggests their simplicity is being amply rewarded through increased visits by shoppers and therefore more sales.
While the big grocers have added complexity, Aldi and Lidl have kept things simple and gained market share for their efforts. However, their current initiatives to add more services and extra product will inevitably bring greater complexity, while their bigger rivals have been looking to simplify things. There is definitely a warning in there and one that all businesses should heed.
Glynn Davis, editor of Retail Insider
K3 Retail deliver multi-channel solutions that enable retailers to create joined up shopping experiences for their customers whether they choose to buy on-line, direct, in-store or via mobile. It has over 20 years’ experience delivering award winning solutions, to more than 175 internationally recognised retail brands.