Webjuicer General

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Webjuicer General

  1. 1. General Presentation The future of comparison websites in Belgium
  2. 2. <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. 3. 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. 4. NEED FOR SIMPLICITY <ul><li>Example: mobile providers </li></ul><ul><li>… some of them offering +10 tariff plans </li></ul>
  5. 5. SEARCH FOR INFORMATION <ul><li>HOW IT USED TO BE </li></ul><ul><li>2008 </li></ul>SHOWING ADS LOOKING FOR INFORMATION
  6. 6. LOOKING… <ul><li>More buying on line than in Holland </li></ul><ul><li>Internet as a source for information </li></ul>
  7. 7. Millions of sites… 2.2 million sites / 50,000 searches per month = 40 sites per search (NL) 520 site per search (FR) !!
  8. 8. Competition is tough
  9. 9. 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. 10. <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. 11. 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. 12. 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. 13. 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. 14. Margins not hurt by comparison websites ING.nl BE ING.Be
  15. 15.
  16. 16.
  17. 17. A booming Business
  18. 18. Turnover BeatThatQuote.com
  19. 19. 70 different price comparison websites in UK (even sites to compare comparison sites) More than
  20. 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
  21. 21. Lot’s of business models <ul><ul><li>Truly independent </li></ul></ul><ul><ul><ul><li>Scrapers </li></ul></ul></ul><ul><ul><ul><li>Advertiser dbase driven </li></ul></ul></ul><ul><ul><ul><li>A combination </li></ul></ul></ul><ul><ul><li>Ranking based on $ (Independer.nl, sort of) </li></ul></ul><ul><ul><li>Hidden suppliers (Assurland.fr) </li></ul></ul><ul><ul><li>Just a lead generators (Kwanta Kosta) </li></ul></ul>
  22. 22. <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>
  23. 23. 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>
  24. 24. Iprospect (NL) http://www.checkit.nl/pdf/whitepaper_internet_en_financiele_dienstverlening.pdf
  25. 25. now Jan Hilde
  26. 26. week 1 family & friends bank websites
  27. 27.
  28. 28.
  29. 29. week 2 A new bank found on internet
  30. 30. week 3
  31. 31. week 4
  32. 32. 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
  33. 33. 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>
  34. 34. Belgium
  35. 35. The UK Comparison site Comparison site Comparison site Comparison site
  36. 36. Not 7 less 3 But a log difference something like 2 7 vs 2 3 836 K vs. .5 K
  37. 37. 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%
  38. 38. <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>
  39. 39. 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>
  40. 40. 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>
  41. 41. Belgian consumers are also looking for financial information on line 41,5% of Belgian respondents have looked for financial product information online
  42. 42. Consumer information 68% 13% 41% 13% 11% 15% 11% 4% Belgian results 52%
  43. 43. Belgian usage is low low 8.6%
  44. 44. Belgian trust is low 32% = enough trust + lots of trust 65%
  45. 45. 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%
  46. 46. Planned usage is high
  47. 47. Imagine a site…
  48. 48.
  49. 49. 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%
  50. 50. 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>
  51. 51. <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>
  52. 52. 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>
  53. 53. Our plan: Info + Action + Ratings Plus Ratings on suppliers
  54. 54. Top 5 search results for most of our sites
  55. 55. 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>
  56. 56. Our business model Consumer focus Consumer Fair Advertiser focus 80% of companies Neutral Honest Transparent
  57. 58. 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
  58. 59. Comparison vs. alternative media (price)
  59. 60. A rough comparison vs. CPC (google)
  60. 61. 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>
  61. 62. 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>

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