Webjuicer General


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Webjuicer General

  1. 1. The future of comparison websites in Belgium
  2. 3. <ul><li>The Belgian Internet landscape </li></ul><ul><li>Comparison sites </li></ul><ul><li>Why do they work /international research </li></ul><ul><li>Belgian Research </li></ul><ul><li>Making a Belgian business </li></ul><ul><li>Discussion: making it work for you… </li></ul>
  3. 4. Today’s challenges <ul><li>Information overload </li></ul><ul><li>Matching consumers and advertisers </li></ul><ul><li>Personal advice not general answers </li></ul>
  4. 5. NEED FOR SIMPLICITY <ul><li>Example: mobile providers </li></ul><ul><li>… some of them offering +10 tariff plans </li></ul>
  6. 7. LOOKING… <ul><li>More buying on line than in Holland </li></ul><ul><li>Internet as a source for information </li></ul>
  7. 8. Millions of sites… 2.2 million sites / 50,000 searches per month = 40 sites per search (NL) 520 site per search (FR) !!
  8. 9. Competition is tough
  9. 10. But hard is it really ? <ul><li>1500 keywords (Insurance and banking) </li></ul><ul><li>4400 sites that showed up in a top 10 ranking </li></ul><ul><li>2 measures </li></ul><ul><ul><li>Num = number of appearances </li></ul></ul><ul><ul><li>Scores for positions </li></ul></ul>
  10. 11. <ul><li>The Belgian Internet landscape </li></ul><ul><li>Comparison sites </li></ul><ul><li>Why do they work /international research </li></ul><ul><li>Belgian Research </li></ul><ul><li>Making a Belgian business </li></ul><ul><li>Discussion: making it work for you… </li></ul>
  11. 12. COMPARISON WEBSITES <ul><li>Give objective information (usually) </li></ul><ul><li>Compare prices (and ratings) </li></ul><ul><li>3 primary areas of business </li></ul><ul><ul><li>Products </li></ul></ul><ul><ul><li>Travel </li></ul></ul><ul><ul><li>Financial Services </li></ul></ul>
  12. 13. How they work… 1. People fill in personal data and needs 2. They compare the different rates 3. If they apply, the advertiser pays for the lead
  13. 14. A simple business model <ul><li>Costs per lead about the same price as other leads </li></ul><ul><li>Mortgages </li></ul><ul><li>Typical price: 40-80 Eur </li></ul><ul><li>Print 60-140 EUR </li></ul><ul><li>Direct Mail: 60-80 Eur </li></ul><ul><li>But conversion rate a lot higher Conversion Rates vs. Direct mail </li></ul><ul><ul><li>Home loans +280% </li></ul></ul><ul><ul><li>Credit Cards + 80% </li></ul></ul><ul><ul><li>Insurance +170% </li></ul></ul>
  14. 15. Margins not hurt by comparison websites ING.nl BE ING.Be
  15. 16.
  16. 17.
  17. 18. A booming Business
  18. 19. Turnover BeatThatQuote.com
  19. 20. Online verzekeren is het tweede internetproduct in Nederland Serge Fenenko ( Novocortex ) woensdag 6 februari 2008, 13:12 Rubriek: Cijfers en feiten | Trends | Bekeken: 8551 keer (4861 keer doorgeklikt) 21% that looked on-line bought on-line
  20. 21. <ul><li>The Belgian Internet landscape </li></ul><ul><li>Comparison sites </li></ul><ul><li>Why do they work /international research </li></ul><ul><li>Belgian Research </li></ul><ul><li>Making a Belgian business </li></ul><ul><li>Discussion: making it work for you… </li></ul>
  21. 22. Forrester research <ul><li>Comparison sites not the first place </li></ul><ul><ul><li>They get there after looking for a while </li></ul></ul><ul><ul><li>Used to confirm / eliminate </li></ul></ul><ul><li>Often no on-line activity </li></ul><ul><li>Almost always a 2nd source of information </li></ul><ul><li>Often several sites (2-3 sites on average) </li></ul><ul><li>A repeat business (2.2 products / year) </li></ul>
  22. 23. Iprospect (NL) http://www.checkit.nl/pdf/whitepaper_internet_en_financiele_dienstverlening.pdf
  23. 24. now Jan Hilde
  24. 25. week 1 family & friends bank websites
  25. 26.
  26. 27.
  27. 28. week 2 A new bank found on internet
  28. 29. week 3
  29. 30. week 4
  30. 31. The net result <ul><li>Consumers </li></ul><ul><ul><li>Tired feet </li></ul></ul><ul><ul><li>Lots of insecurity about the decision </li></ul></ul><ul><ul><li>“ you gotta negotiate” is the message for friends </li></ul></ul><ul><li>Banks </li></ul><ul><ul><li>1 in 8 hit rate </li></ul></ul><ul><ul><li>Lots of wasted time </li></ul></ul><ul><ul><li>Probably not much margin </li></ul></ul><ul><ul><li>Hundreds in contact costs </li></ul></ul>A lose / lose business model
  31. 32. Summary: why they work… <ul><li>Motivated consumers </li></ul><ul><li>Something advertisers could never do </li></ul><ul><li>Win/ Win </li></ul><ul><ul><li>Consumers : easy </li></ul></ul><ul><ul><li>Advertisers: cheaper and they can select clients </li></ul></ul>
  32. 33. Belgium
  33. 34. The UK Comparison site Comparison site Comparison site Comparison site
  34. 35. Not 7 less 3 But a log difference something like 2 7 vs 2 3 836 K vs. .5 K
  35. 36. Half of Net users have heard of at least one financial price comparison site . Belgium: 9% A quarter of Net users have used a price comparison site in the past year . Belgium: 4%
  36. 37. <ul><li>The Belgian Internet landscape </li></ul><ul><li>Comparison sites </li></ul><ul><li>Why do they work /international research </li></ul><ul><li>Belgian Research </li></ul><ul><li>Making a Belgian business </li></ul><ul><li>Discussion: making it work for you… </li></ul>
  37. 38. Research <ul><li>AFC: Academics for companies </li></ul><ul><li>Methodology: Web Survey to known internet users </li></ul><ul><li>Data available </li></ul>
  38. 39. Hypotheses <ul><li>Online consumer behavior in Belgium is similar to online consumer behavior in other EU countries. </li></ul><ul><li>There is an unmet consumer need for online product research in the financial sector </li></ul><ul><li>The online product research system has to be different from systems in other EU countries. </li></ul><ul><li>Banks not listed at online financial product research systems experience negative effects </li></ul><ul><li>Belgian online behavior is similar to other EU countries </li></ul><ul><li>Consumers want more information, information they can’t find now </li></ul><ul><li>Trust issues identified </li></ul><ul><li>There would be a negative impact on companies not-listed banks </li></ul>
  39. 40. Belgian consumers are also looking for financial information on line 41,5% of Belgian respondents have looked for financial product information online
  40. 41. Consumer information 68% 13% 41% 13% 11% 15% 11% 4% Belgian results 52%
  41. 42. Belgian usage is low low 8.6%
  42. 43. Belgian trust is low 32% = enough trust + lots of trust 65%
  43. 44. Negative effects for not-listed banks? If your bank is not listed on a price comparison website, would this have a negative impact on consumer decision? Would consumers still consult your bank’s website? Language Negative impact Still consult FR 45% 89% NL 44% 90%
  44. 45. Planned usage is high
  45. 46. Imagine a site…
  46. 47.
  47. 48. But we know what consumers want What other information would you like ? NL FR TOTAL Specific product details 41.55% 44.42% 44.07% Comparison of characteristics/prices of different banks 29.83% 31.15% 31.48% What product is best for you 23.10% 25.19% 24.81% Non-biased information about the product 14.31% 21.54% 16.67% Information about saving and how to pick the best product 14.14% 17.88% 15.74% Comparison of characteristics/prices of one specific bank 8.45% 11.92% 9.81% Recommendations of specialists 8.79% 10.19% 9.63% Opinions of other consumers 9.48% 5.96% 9.07% Names of companies with products I am looking for 8.45% 8.46% 8.89% Independent reports 7.93% 5.96% 7.78% Information about service level and quality 4.31% 6.54% 5.00% Other 1.90% 3.08% 2.22%
  48. 49. 2 big issues to resolve <ul><li>Traffic = key element to the success of a price comparison website </li></ul><ul><li>No traffic = no business SEO ! </li></ul><ul><li>Consumer trust = key element to the success of a price comparison website </li></ul><ul><ul><li>Do more than prices </li></ul></ul>
  49. 50. <ul><li>The Belgian Internet landscape </li></ul><ul><li>Comparison sites </li></ul><ul><li>Why do they work /international research </li></ul><ul><li>Belgian Research </li></ul><ul><li>Making a Belgian business </li></ul><ul><li>Discussion: making it work for you… </li></ul>
  50. 51. The Belgian Challenge <ul><li>Traffic </li></ul><ul><li>Skeptical consumers </li></ul><ul><li>Not used to buying financial services on line </li></ul><ul><li>A small market (less € for development) </li></ul><ul><li>No sites that have succeeded yet </li></ul>
  51. 52. Our plan: Info + Action + Ratings Plus Ratings on suppliers
  52. 53. Top 5 search results for most of our sites
  53. 54. Building a brand <ul><li>Consumer </li></ul><ul><li>Objective source of information </li></ul><ul><li>No privileged advertisers </li></ul><ul><li>Personal results </li></ul><ul><li>A new starting point for important decisions in their lives </li></ul><ul><li>Advertiser </li></ul><ul><li>Professional environment </li></ul><ul><li>Qualified leads </li></ul><ul><li>They choose their clients </li></ul><ul><li>Quick delivery </li></ul><ul><li>A new, easy way to attract customers </li></ul>
  54. 55. Our business model Consumer focus Consumer Fair Advertiser focus 80% of companies Neutral Honest Transparent
  55. 57. That means a lot of business in many categories Share of visits/ conversion rates based on data on our sites Conversion rates based on UK / Dutch results
  56. 58. Comparison vs. alternative media (price)
  57. 59. A rough comparison vs. CPC (google)
  58. 60. Participation Options <ul><li>Pay per click </li></ul><ul><li>Pay per qualified click/ completed application </li></ul><ul><li>Pay per sale (with tracking systems) </li></ul><ul><li>Also banner / sponsor advertising </li></ul>
  59. 61. Next Steps <ul><li>More information http://dl.dropbox.com/u/704747/Background.zip </li></ul><ul><li>Contact </li></ul><ul><ul><li>[email_address] </li></ul></ul>