Should businesses go compare?

Price comparison websites are big business, netting their founders huge dividends while enabling customers to shop around for the best prices from the comfort of their own homes – and in this climate, where every penny counts, more and more people are taking advantage of these websites. 

Indeed, a recent report by energyhelpline.com highlights how consumers are taking control of their finances in as much as "by switching suppliers, customers are standing up for themselves and showing that they will not tolerate high prices”.

The benefits of price comparison websites are clear: they help consumers save both time and money, whilst enabling sellers - including those less well-known - to have their products viewed, which, potentially, leads to increased sales.

So what do the likes of Aviva and Direct Line gain from their self-imposed exclusion from price comparison websites? Firstly, by removing the middleman they avoid referral fees. They also avoid being compared to the budget / lower priced products whilst, through their marketing, challenging the assumption that the lowest prices can only be found via price comparison websites. 

Also, by staying away, they're maintaining the stance that savvy shoppers will also ask them for a quote directly and make their own comparisons. This not only saves them the costs associated with being on a price comparison website but also strengthens their brands proposition.

Jez Simms

Group Research Manager

The 80/20 Principle and the three “agents of change”

The 80/20 Principle (which is based on Pareto’s Principle) says that in any situation roughly 80% of the 'work' will be done by 20% of the participants. The key for advertisers is, naturally, to find the 20%. In his book “The Tipping Point: How Little Things Can Make a Big Difference” Malcolm Gladwell describes the three “agents of change” describing them as:

• Connectors – people who are both known by a lot of people and who are in the habit of making introductions. They have the “ability to span many different worlds is a function of something intrinsic to their personality, some combination of curiosity, self-confidence, sociability, and energy”
• Mavens – people who have special knowledge or experience. They are “information specialists” or “people we rely upon to connect us with new information"
• Salespeople – people who are persuaders. They have powerful negotiation skills and have a knack which makes others want to agree with them

Perhaps the real key is to make the most of your time - or your money - by not only focusing in the right direction but by also using the time wisely.


Jez Simms
Group Research Manager