Simple Brand Premium

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One of the secrets of brand is that consumers are willing to pay higher premiums for some brands.

As a result, making their brands one of these high premium brands has become the goal pursued by brand managers.

A recent survey by sirugao company shows that Chinese consumers are willing to spend more than 5% to 8% of their cost to consume brands that offer simple experiences. This figure is almost two times that of consumers in North America and Europe.

Si Rui Gao's research is trying to find out what problems people are facing in daily life and determine the "simplified value added" of all walks of life, that is, the added value perceived by consumers when they get a simple brand experience.

Research has found that reducing complexity is particularly important in some industries, such as telecommunications and technology, electronics.

Especially in the telecommunications industry, 30% of Chinese consumers say they are willing to spend more money on brands that offer simple experiences.

In contrast, only 16% of North American consumers and 14% of British consumers expressed their willingness to do so.

Chinese consumers believe that the brand interaction provided by hotels, restaurants and retailers is the simplest.

Despite the dominance of Asian brands in the Chinese brand reduction index, some American restaurant brands also have good performances, such as McDonald's and KFC.

On the contrary, mortgage utilities and insurance are considered the most complex and the most unclear.

Especially when the insurance brand is compared with the consumers in other regions, Chinese consumers often think they are more complicated.

When describing the difficulties encountered in communicating with the insurance brand, an investigation participant said, "the introduction materials of insurance companies are very difficult to understand. Even though I read them over and over again, I still don't understand."

Another consumer said: "the marketing method used by insurance companies is very disappointing, almost deliberately deceiving consumers to sign insurance policies."

It can be seen that complexity has brought obstacles to the realization of the organization's own potential, and brands that provide simple experience have gained competitive advantage because of less barriers to interaction with consumers.

Then, what is the connotation and value of brand simplification? How can enterprises achieve the simplification of brand?

In the view of Sirui Gao, the simplicity of the brand means elegant style, straightforward explanation and clear dissemination.

According to the survey, the brands that rank behind the global brand reduction index have made people's lives more complex in the following ways: communication is difficult to understand, or is believed to spread fraudulent information; they feel that they are deliberately charging too much; the brand is small, or only for those who are carefully selected; it makes people feel difficult to communicate, the customer service experience is bad or difficult to use.

Some industries used to rely on complexity to survive. They believed that complexity is the foundation of industry.

In their view, complexity means professionalism.

In fact, complex and professional connections are only superficial phenomena, and the two themselves do not have strong correlation.

For example, the subprime crisis in the United States is caused by too complex.

Some loan companies tend to be complicated in front of their customers. In fact, their real purpose is to deceive the unknown people into the system, to buy their dream house, but not to tell them the potential danger, so that they finally have a lot of trouble.

Therefore, sometimes, it is probably because greed, rather than professional performance, is intended to link complex and professional subjects.

Some high-tech companies also give people an intricate impression. For example, it is very complicated to pay bills or checks in BlackBerry in the United States, but the complexity is not due to the complexity of the technology itself, but the business model of the company.

In other words, the business models of some technology companies pay more attention to how to present the complexity of technology to consumers, rather than to focus on what consumers care most about, that is, the process of service.

A strong technology company, or a highly skilled company, is not necessarily complicated. It should focus on the most important things.

Apple, for example, has been very successful in this regard.

Whether iPhone or iPad, the production process is very complex, but consumers see is very simple platform.

They represent elegant, concise and useful design styles.

Compared with complexity, simplicity shows its unique value.

Those brands that rank the top in the simplified index can make people's lives more simple: direct communication, clear style, no use of jargon, lower prices, reduce pressure, improve convenience, easy to find, save time, make use and communication easier, and enable consumers to get more things from life, such as building more intimate relationships and easier lifestyles.

Shang Dawei, President of Si Rui Gao, believes that any enterprise in order to create a good and simple brand must follow the following three principles: first, create a clear and credible story according to the true situation of the company; second, when the story is created, it is to be presented in a convincing way, not just to show it to others; third, to maintain consistency in storytelling, and to tell the story well at every contact point with the audience.

For example, Procter & Gamble's story is to improve the lives of consumers around the world, not only now, but also their descendants.

Apple's story is to enhance people's lives with intuitive, concise and elegant design.

The two companies do not talk about their products directly, but about how to contribute to people around the world through what they do.

It is not easy to tell a good story.

The famous brand information service provider, Bloomberg news, has not been very different from other information providers. It conveys something rational and functional.

But he thinks that Bloomberg can actually tell its story better and more appealing.

Bloomberg offers not only information and intelligence, but also a global provider of data, news, information, ideas and ideas for 24 hours.

Bloomberg relies on people who are the smartest people in the world, so customers can talk with the smartest people around the world.

Therefore, Bloomberg's story can contain three key words: insight (to provide insight to customers), connection (to connect customers with smart people), and advantages (the ability of customers to expand and upgrade).

If you can tell the story in the most beautiful language, you will leave the deepest impression on people.

If you want to convince a story, you must first tell a true story, rather than fabricate it.

Businesses that are able to grow rapidly are those that can achieve long-term brand commitment (that is, real story companies).

If this is not achieved, even if it has achieved great success, it will be difficult to maintain the long-term healthy development of the brand.

Take Toyota Corporation as an example, TOYOTA did have a very good product innovation, but it accumulated some problems in the long term innovation process (such as safety performance), and vague about these questions, this style has hurt the brand.

NOKIA is also facing similar problems.

NOKIA, once the largest mobile phone manufacturer in the world, still occupies a considerable market share until now. But there is no doubt that NOKIA is heading for a recession.

"I bet that one of the two things is going wrong, or that it does not have a strong core story, or that it fails to carry out the story successfully.

Whether it is implemented in personnel, implemented in the product, or implemented on the service.

There must be problems in these two things. "

Shang Dawei said.