The Crisis of Complexity Ignites Consumer Backlash

NEW YORK, March 20, 2014 /PRNewswire/ -- The Call for Clarity Survey released today by Siegelvision, a strategic communications firm that focuses on combatting the crisis of complexity in business and government, reveals that consumers are openly expressing their dissatisfaction with companies that don't provide clear, honest and easily comprehensible contracts, click-through agreements, product instructions and accessible rewards programs. The survey shows that frustrating, cumbersome communications lead to loss of sales, goodwill and trust, while also undermining customer retention.

The good news, according to the survey, is that consumers are fighting back, especially online. Forty-eight percent (48%) of respondents made their complaints directly online to a company, and 16% took the time to write a bad review on a website. The rise in consumer activism was also apparent by the 10% who said they complained by social media such as Twitter or Facebook.

The study also demonstrates that consumers are not shy in complaining about a wide range of information. Forty-seven percent (47%) of the respondents complained about confusing bills, 42% criticized unclear instructions and 40% were vocal about hard-to-understand contracts. Most important, 55% were uncertain they would purchase additional items from these same companies.

"Until recently consumers took it for granted that they couldn't do anything about unreadable insurance policies, consumer credit card contracts, healthcare forms and student loan contracts," said Alan Siegel, the CEO of Siegelvision and author of the best-selling book, Simple: Conquering the Crisis of Complexity (Hachette, 2013). "The Call for Clarity Survey reveals a remarkable turnaround that indicates consumers are finally demanding more clarity in all communications because there are severe economic consequences if they don't."

According to the study, consumers have a hard time understanding virtually all types of information critical in their lives. More than 80% of consumers found 12 different categories—including auto leases, click-through agreements, extended product warranties, life insurance statements, rental car agreements and cell phone contracts—too time-consuming to read. A significant 60% found mutual fund prospectuses, mortgage terms and federal tax instructions somewhat or very difficult to read.

Key Survey Results
Additional findings from the survey reinforce that business and government continues to frustrate and confuse the American public:

• Bringing clarity and understanding to healthcare and the college financial aid process, two areas where we face serious economic issues, is absolutely critical for consumers to make informed decisions. The study showed that health insurance enrollment information and college financial aid forms (FAFSA) are both excessively time-consuming to read (both 90%) and difficult to understand (51% and 49% respectively).
• To further amplify the need for clear communications in the healthcare arena, younger consumers in the 18 to 24 demographic were unfamiliar with health insurance enrollment information. Despite all the publicity and editorial commentary on health insurance over the past two years, 86% of consumers in this age group are unfamiliar. Of the 14% who say they are familiar, 85% of them say it is difficult to understand.
• Simple and easy-to-understand language in insurance agreements should be the rule, but it's still the exception. A whopping 78% of consumers are unfamiliar with common insurance terms, such as deductible, policy endorsement, rider and accelerated death benefit. This contrasts with the 31% of consumers who understand seemingly esoteric sports terms like restricted free agency, hard caps and Larry Bird exceptions.
• Consumers have more choice than ever before, but do they really benefit? The study found that 87% of shoppers for major appliances and electronics only considered three alternative models when making their selection. In general, 26% of shoppers indicated that there were too many choices available.
• In looking at new media, tech and e-commerce, the Call for Clarity Survey revealed that the proliferation of passwords is leading to lost opportunities for retailers. Forty-five (45%) of consumers have more than six passwords and an astonishing 47% have abandoned an online purchase because they can't remember a password for a website. The resulting loss of e-commerce revenue is enormous.

Noted Alan Siegel, a pioneer in simplification for the past 35 years, "Quite frankly, I was surprised at the degree of confusion that exists in materials emanating from business and government that have such a dramatic impact on people's lives."

The Call for Clarity Survey findings are based on a survey of 800 representative U.S. consumers, 18 and older. The survey was conducted online from January 27 to February 11, 2014, and was authored by Irene Etzkorn, Chief Clarity Officer at Siegelvision. Download the 2014 Call for Clarity Survey.

Siegelvision's Call to Action
Siegelvision's Call for Clarity Survey shows that business and government need to stop paying lip service to simplifying their communications. Our leaders have an affirmative responsibility to ensure that people understand their rights and obligations so they can make informed decisions. This will not only save people from being at risk—such as students who are overwhelmed by their college loans—but it will go a long way to restoring people's respect and trust in our institutions.

The American people should demand that big business and government start investing in creative solutions to communicate more effectively, especially employing interactive media. They can start by designing electronic versions of applications, contracts, bills and instructions to provide immediate access to definitions and explanations and the ability to calculate alternative payment options.

About Siegelvision
Siegelvision is a strategic communications firm created by Alan Siegel, a pioneer in branding and simplification, to help corporations and causes combat the crisis of complexity. Siegelvision's team of seasoned brand strategists, plain language writers, information designers, graphic designers and customer experience specialists work together to help organizations achieve clarity of purpose, clarity of expression and clarity of experience.

The firm lives by the belief that the most powerful brands have a clear, credible and compelling purpose—simply and accessibly expressed—across all points of interaction. In Alan Siegel's words: "Our commitment to 'clarity above all' means we deliver clear, hard-hitting solutions that inspire action and drive impact."

Recent clients include NPR, Hay Group, NYU, Lupus Foundation of America, Urban Institute, Cornell NYC Tech, United Technologies, St. John's College, Phoenix House, John Jay College, Alzheimer's Drug Discovery Foundation, New York Institute of Technology, Sonifi, AeroVironment, Visuray and Cornell College of Engineering.

Contact:
Laura Berlin Zipfel
Marketing Coordinator
[email protected]
646.738.6014
Siegelvision
9 East 40^th Street, Penthouse
New York, NY 10016
siegelvision.com

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SOURCE Siegelvision