Two phrases you’re likely to hear in any office for the next 12 months – “times are tough” and “how can we make a little bit more from what we have?”. Although some are still coming around to the value of data, there’s a select band of companies who know full well what it’s worth to them and other people – the comparison websites.
The BBC programme about financial comparison websites (despite a few glaring inaccuracies) managed to highlight the intrusiveness of some of the loans companies but also the speed and frequency of phone calls to customers – despite never being asked to be phoned.
The problem (for the customer) is that the statistics show that they are converted from a lead to a sale much better over the phone. So whilst comparison websites are sitting on mounds of personal data and other companies are willing to pay a pretty penny for it (anything between £5-£50 per “lead” – depending on the product and quality of data), where do they draw the line.
Customers certainly don’t like being called when they’ve not asked to be. But are they starting to see this as a necessary evil of the comparison website? Should they just put up with it and treat it as a “cost” for their “free” service? Can anyone see an end to this practise whilst margins are tight, competition is high and the economic environment is tough?
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{ 2 comments… read them below or add one }
There is no doubt that conversion is significantly increased on the back of out-bounding, but I personally think it compromises the value of the comparison service.
The basic concept is that aggregators can enable the individual to make a decision whereby they can avoid traditional sales tactics. Different comparison sites will offer varying degrees of impartiality and market coverage, but from a consumer point of view, I think it should be about helping someone make an informed decision, and facilitating the process.
In some instances/verticals, that process can be simplified by having a conversation with someone, but that should be the final stage.
Google themselves are perpetuating the issue with the development of merchant search, which seems to have reared it’s head once again. Mind you, not sure that now is the best time to be trialling anything involving secured loans.
They definitely need to get the balance right. What seems to be missing from all debates on this topic is the customer’s perception. They’re being call by companies they’ve not asked to call them, who they’ve probably never heard of.