The Good: Every Industry But Insurance
A survey recently released by global strategic branding firm Siegel+Gale found that American consumers are willing to pay more for brands that deliver simpler products.
Even considering the current state of the U.S. economy, people are willing to spend more money for simple convenience.
The survey points out that we’re willing to pay $27 billion (with a “B”) more collectively for the brand names that deliver simpler products, services and experiences.
Five percent is the magic number for how much more people are willing to spend for insurance products that meet that description.
The Bad: The Insurance Industry
According to Siegel+Gale’s survey, insurance ranks dead last among 13 industries in terms of overall simplicity. That’s pretty sad when other industries include mortgage lenders and credit card issuers! Of course, restaurants and retailers ranked near the top.
Serve someone a meal full of trans-fat and sugar, or sell them clothes or electronics that will be out of style in six months, and they’ll love you. Insure their entire financial future for a fraction of the cost that would be necessary out of pocket…and rank dead last.
This survey is the first annual Global Brand Simplicity Index, which polled more than 6,000 consumers across seven countries. The goal is to discover individuals’ perceived points of complexity and simplicity within their lives.
Additionally, the study seeks to discover the “Simplicity Premium,” which is the added value people place on having a “more simplified, more intuitive experience with brands in multiple areas of their lives.”
So who ranked where? Below is a snapshot of which companies ranked in the top 10 and where the top rated insurers landed on the list. While there are no real surprises here, it’s fun to see where some of the companies wound up.
The U.S. Brand Simplicity Index scored the top 10 brands as follows:
4. Dunkin Donuts
5. Burger King
7. Trader Joe’s
10. Old Navy
Of the 102 ranked U.S. brands, insurers claimed the following spots:
83. Farmers Insurance
87. State Farm
98. United Health
Geico and Progressive also happen to have the most recognizable insurance mascots…
Who Stands To Gain The Most?
The study found that the health insurance industry can reap the most benefits by providing a simpler product and experience.
An estimated $6 billion is up for grabs for the health insurer who figures out how to make health insurance as simple as ordering a value meal from a local fast food joint. Let the games begin.
And remember, brand doesn’t mean a whole lot, especially when you’re trying to save money on car insurance.