New Siegel+Gale Survey Finds 75% Believe Complexity Played Major Role in Current Financial Crisis

NEW YORK, JANUARY 14, 2009—"People are desperate for clarity and simplicity in order to make informed decisions," says Alan Siegel, Founder and Chairman of global brand consultancy Siegel+Gale. "There is a huge opportunity for government and business to overcome cynicism and regain lost trust through the way they communicate with their constituents and customers."

A new survey of 1,214 American homeowners and investors conducted by Siegel+Gale between December 29, 2008 and January 5, 2009, released today, shows an overwhelming majority demand more clarity in communications from companies and the government. Fully 84% of all consumers say they are more likely to trust a company that uses jargon-free, plain English in communications. And 79% say they think it is "very important" that President Obama "mandate that clarity, transparency, and plain English be a requirement of every new law, regulation and policy."

"Transparency and authenticity are the new marketing imperatives," says Lee Rafkin, Siegel+Gale's Global Director of Simplification. "People are fed up and desperate for institutions and brands that offer simple and honest communications they can understand. That's the clear message from our most recent research survey."

Complexity Up; Trust Down

Three-quarters of survey respondents (75%) say that complexity and lack of understanding have played a significant role in the current financial crisis. Moreover, 63% of those surveyed feel that "banks, mortgage lenders and Wall Street intentionally make things complicated to hide risks or to keep people in the dark."

Trust in companies is predictably down, the survey shows. Compared to one year ago, 37% are less likely to trust their mortgage lender, 36% are less likely to trust their broker or financial advisor, and 35% are less likely to trust their bank.

However, consumers agreed they should shoulder some of the blame for the financial crisis. Over half of all surveyed admitted to not reading or attempting to understand the complicated documents they sign. And 50% agreed with the statement, "Financial products are inherently complicated. It's the final responsibility of the customer to make sure they understand all the risks."

The Power of Simplicity

The survey asked how much of an impact jargon-free, plain-English explanations and disclosures would make on consumer interest in a number of categories. Consumers reported:

• a 79% increased interest in investing in a financial product,
• a 73% increased interest in selecting a broker or a financial advisor,
• a 67% increased interest in purchasing a life insurance policy,
• a 63% increased interest in taking out a loan, and
• a 63% increased interest in applying for a credit card.

To download a copy of the survey, click here.

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About Siegel+Gale

Siegel+Gale is a global strategic branding firm committed to building world-class brands through elegantly simple, unexpectedly fresh strategies, stories and experiences. With Simple is Smart as its operating philosophy, Siegel+Gale delivers powerful services in brand development, identity design, simplification, research and analytics, and digital strategy.

Since its founding by branding pioneer Alan Siegel in 1969, Siegel+Gale has helped drive business results for brands such as Aetna, American Express, Bank of America, China Youth Development Foundation, Dell, Dow Chemical Company, The Four Seasons Hotels and Resorts, The Internal Revenue Service, The King Abdullah University of Science and Technology, Microsoft, Motorola, Pfizer, SAP, Sony PlayStation, Yahoo! and the YMCA.

Siegel+Gale has offices in New York, Los Angeles, San Francisco, London, Hamburg, Dubai, Shanghai and Beijing and strategic partnerships around the world as a member of the Omnicom Group of companies.

For more information please contact Gail Nelson at 212.453.0400 or gnelson@siegelgale.com.