Dive Brief:
- Aldi and Lidl are at the top of branding firm Siegel+Gale's list of the top 100 global companies that practice simplicity, a concept the firm identifies as "the intersection of remarkably clear and unexpectedly fresh" that resonates with customers, according to its seventh annual survey. Whole Foods, Trader Joe’s, Walmart and Publix were also on this list.
- The 2017 Global Brand Simplicity Index quantifies the value of brand simplicity and its impact on consumer perception by analyzing data from 14,000 respondents across nine countries.
- The index revealed that 64% of consumers are willing to pay more for a "simple" experience, and 61% of consumers are more likely to recommend a brand for simpler communications and experiences.
Dive Insight:
Aldi and Lidl came in first and third, respectively. Both low-cost supermarket chains have done well in the Simplicity Index throughout the years as they consistently deliver on their brand promises by delivering high-quality goods at an affordable price.
“When we consider simple brand experiences, both stores have minimalist warehouse style layouts, which make it easier for customers to navigate,” Brian Rafferty, Siegel+Gale’s global director of business analytics and insights, told Food Dive in an email. “They also delight customers with their weekly specials, selling seasonal goods, such as ski gear or electronics, that you may not expect to find in a grocery store.”
Among those listed in the report, grocery is the third simplest industry/experience.
“Retail and grocery are in third place in our simplicity Index industry rankings behind Internet retail and Internet search,” Rafferty wrote. “Despite online services such as Fresh Direct, consumers still primarily prefer to shop for groceries in brick-and-mortar stores.”
For those grocers looking to get simplify earn a spot on a future Siegel+Gale list, Rafferty noted it’s important to start with the shopper and examine the end-to-end customer journey to find opportunities to remove friction and simplify experiences.
“Consider the array of products you stock. Sometimes an overabundance of choice can become a source of confusion,” he said. “Consider the wayfinding in your store — is it easy to locate products? Another untapped area is big data; successful retail brands of the future will leverage customer’s information to gain a competitive advantage and use technology to create seamless experiences. Grocery retailers must focus on how they can make customers lives easier in truly surprising ways.”