Thomas Mueller, PLAIN2011 presentation

The Cost of Complexity Thomas Müller, Global Director Customer Experience, Siegel+Gale 1

About Siegel+GaleSiegel+Gale is a globalstrategic branding firm. 2

Our promiseWe build world-classbrands through elegantlysimple, unexpectedly freshstrategies, stories andexperiences. 3

42 years 200+ peopleAn Omnicom company8 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 askedRespondents 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 issuefor people around the world 9

Some of the brands in the lowest rankingindustries have a lot to learn about simplicityLowest 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 355Note: The maximum score is 1,000. A score of 750 or better is excellent, from 749 to 601 is average and 600 orless is below average. 10

Many of the simplest global brands hailfrom the fast food and retail industriesNote: McDonald’s outranked Nokia with a raw score of 853.7 versus 853.5. KFC outranked Burger King with a scoreof 826.3 versus 825.7. 11

Seven of the top ten U.S. brands arefood-centric—either fast food or retail 12

United States Brand Simplicity Index 13

Brands that fail to provide simplercommunications and experience leaveprofits on the table 14

More retail, dining/entertainment and mediabrands dominate the German landscape 15

Germany Brand Simplicity Index 16

Between 5% and 15% of German consumersare willing to pay more for simpler experiencesand interactions. 17

Simplicity pays 18

Implications for brands 19

What are the leading brands doing right in termsof 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 needsBusiness 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 channelsDoctor’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-purposetemplate covers 70%of taxpayercircumstances 29

5. Write in plain language 30

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 refineBeforeAfter 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

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Thomas Mueller, PLAIN2011 presentation

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