The Crisis of Complexity Ignites Consumer Backlash
PR Newswire Association LLC |
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
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
The Call for
Siegelvision's Call to Action
Siegelvision's Call for
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
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
Recent clients include
Contact:
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Siegelvision
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siegelvision.com
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SOURCE Siegelvision
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