A proposed code of conduct for cost comparison sites has collapsed, leaving consumers without a watchdog.
How to keep away from cost comparison traps
One former boss of a comparison site warned that because of the collapse, plenty of consumers could be deceived by false claims & misleading information. The Comparison Consortium was set up to provide a recognizable stamp of quality for the sales practices of cost comparison sites. The voluntary code was viewed as a last-ditch try to stave off compulsory Government rules on sales practices.But so few firms signed up, the consortium has collapsed. Now firms can continue displaying information about their products with minimal controls on their activities. 'It is hard to keep away from the conclusion that plenty of consumers will continue to be deceived. It is immensely frustrating.'
Despite their commercial success, consumer groups have attacked the way plenty of comparison sites display information to their users, leaving them opens to making a wrong purchase.
Among the pricing scams is the use of high excesses of up to £500 on motor insurance policies. This enables a site to quote a cheap cost, but when they claim motorists find they must pay most or the entire repair costs them.
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In home insurance, one ploy is to quote a cost that assumes a property is occupied all day. In case you miss or ignore that default answer, your owner could be ruled invalid when it comes to making a claim.
A recent document by the City regulator the Financial Services Authority (FSA) found there 'was mixed facts in terms of the clarity, fairness & accuracy of the information given to customers'.
Thomas Adalbert, managing director at BeatThatQuote, which provides online comparison services for the Everyday Mail, says: 'We were pleased to be the first website accredited by the Comparison Consortium. However, its structure changed to that of a limited company. They felt that this changed the spirit of the original vision, so they withdrew.'
In October last year, the competition watchdog the Office of Fair Trading announced an inquiry in to online sales practices, including how comparison sites operate. Its findings are set to be published later this year.
• The best way to make use of price comparison sites
Wednesday, July 28, 2010
Wednesday, July 21, 2010
How to find bargains online
PRODUCT – Before you look for the lowest priced cost you require choosing what you require product you actually require. You can do this by researching online; the simplest way is to Google for reviews of different products so that you can choose what would be best for you.
SEARCH & COMPARE – You are now prepared to make use of a comparison net site to try & find out the best prices. You ought to seldom use one comparison net site; using six or more will give you a balanced view of the market. Comparison sites
The sites will only show products from companies who pay them. This is not necessarily a bad thing - suppliers value their reputation & their commercial relationships, so it means you can be sure you are not dealing with cowboys.
AND SEARCH AGAIN – Before you buy you ought to search the product using a cost comparison service, then try again using a standard search engine - it might find the product with a less expensive cost.
In the event you use Firefox, Net Explorer or Google Chrome to browse the net then there is an add-on application that you can download which finds the lowest priced cost for a product for you.
It is called the Invisible Hand & it is free to download. For example, if you are shopping online at Amazon & you are looking a Mac book the Invisible Hand will pop up & tell you that it is £56 cheaper at Dixons.
The tool will only work when you are taking a look at products, so it should not disturb your day to day net browsing. The add-on is supported by widely known brands such as BT, Comet & HMV but obviously it won't search every single site out there so it is still best to make use of a comparison site in addition to the tool.
The best price comparison sites
Cost comparison site DOs & DON'Ts
DO:
• make sure the company with the lowest cost is reputable. They ought to have a UK office, a secure server & an address & phone number.
• Haggle: take a printout of an online cost quote to a shop & get them to match it.
• look for reliability as well as cost. The lowest priced option may not always come from the most reliable source.
• take in to account the cost of delivery when shopping online. This can often push the cost up above the High Street equivalent.
DON'T:
• try to source non-branded goods on cost comparison websites; if an element of choice is involved, go to the High Street & choose what you require first.
• assume you won't find the net cost in-store, in the coursework of sales.
SEARCH & COMPARE – You are now prepared to make use of a comparison net site to try & find out the best prices. You ought to seldom use one comparison net site; using six or more will give you a balanced view of the market. Comparison sites
The sites will only show products from companies who pay them. This is not necessarily a bad thing - suppliers value their reputation & their commercial relationships, so it means you can be sure you are not dealing with cowboys.
AND SEARCH AGAIN – Before you buy you ought to search the product using a cost comparison service, then try again using a standard search engine - it might find the product with a less expensive cost.
In the event you use Firefox, Net Explorer or Google Chrome to browse the net then there is an add-on application that you can download which finds the lowest priced cost for a product for you.
It is called the Invisible Hand & it is free to download. For example, if you are shopping online at Amazon & you are looking a Mac book the Invisible Hand will pop up & tell you that it is £56 cheaper at Dixons.
The tool will only work when you are taking a look at products, so it should not disturb your day to day net browsing. The add-on is supported by widely known brands such as BT, Comet & HMV but obviously it won't search every single site out there so it is still best to make use of a comparison site in addition to the tool.
The best price comparison sites
Cost comparison site DOs & DON'Ts
DO:
• make sure the company with the lowest cost is reputable. They ought to have a UK office, a secure server & an address & phone number.
• Haggle: take a printout of an online cost quote to a shop & get them to match it.
• look for reliability as well as cost. The lowest priced option may not always come from the most reliable source.
• take in to account the cost of delivery when shopping online. This can often push the cost up above the High Street equivalent.
DON'T:
• try to source non-branded goods on cost comparison websites; if an element of choice is involved, go to the High Street & choose what you require first.
• assume you won't find the net cost in-store, in the coursework of sales.
Tuesday, July 13, 2010
Price comparison sites must focus on trust, loyalty and user experience
Building trust, collaborative functionality and giving greater control to users may be key to the future growth of cost comparison sites, according to a brand spanking new document.
The Future Comparisons Document from user experience consultancy, Web credible predicts that despite currently being squeezed in the work of the recession, the long-term future of the cost comparison market is lovely, as long as sites continue to focus more on the needs of their users to help improve brand loyalty, trust and the user experience.
The cost comparison industry is ten years elderly, but in the first five months of 2009, visitor numbers to a number of the largest cost comparison sites fell by 30 percent.
Now with some insurers publicly distancing themselves from cost comparison sites and other third party sites such as the Everyday Mail offering these services, the document predicts that the cost comparison industry will need to create its approach if it is to continue to grow.
The Future Comparisons Document looks at the key deliverable of three of the market leading cost comparison sites, focusing on the results page, site functionality, overall trust and brand recognition.
It urges cost comparison sites to focus on the requirements of their users to make sure that they can capitalize on the current 'price conscious' surroundings.
The results page is arguably the most important page for a cost comparison net site, and users need clear information and the ability to control and adjust the results as they wish.
Powerful sorting and filtering functions are identified by the document as something that lots of sites need to improve on to make sure users can find the right product as basically as feasible.
In addition to this, the document suggests that sites must permit users to save their results and come back to them at a later date and offer the function of sharing results with other users, as lots of purchases could be collaborative decisions.
The document reveals that a lack of trust and brand loyalty is an issue for cost comparison sites and bad experiences basically compound this.
It cites that a great way to help win trust would be to explain how the cost comparison site works. With this greater understanding web users will likely be more forgiving when the user experience falls over due to an outside issue (such as a difference between the quote prices on the results and when on the insurance site itself). “The recession is a time when price comparison sites should be best placed to take advantage of the price-conscious approach of many consumers, but they seem to be suffering,” said Director at Web credible, Trenton Moss.
“To get back on track in terms of growth, these sites must improve upon key usability features particularly when it comes to the results pages. They should also attempt to design in more functionality that supports the collaborative approach many users' take when choosing financial products."
"Price comparison sites should also work on building greater brand loyalty and trust from users through transparent practices and support once users go off-site."
The Future Comparisons Document from user experience consultancy, Web credible predicts that despite currently being squeezed in the work of the recession, the long-term future of the cost comparison market is lovely, as long as sites continue to focus more on the needs of their users to help improve brand loyalty, trust and the user experience.
The cost comparison industry is ten years elderly, but in the first five months of 2009, visitor numbers to a number of the largest cost comparison sites fell by 30 percent.
Now with some insurers publicly distancing themselves from cost comparison sites and other third party sites such as the Everyday Mail offering these services, the document predicts that the cost comparison industry will need to create its approach if it is to continue to grow.
The Future Comparisons Document looks at the key deliverable of three of the market leading cost comparison sites, focusing on the results page, site functionality, overall trust and brand recognition.
It urges cost comparison sites to focus on the requirements of their users to make sure that they can capitalize on the current 'price conscious' surroundings.
The results page is arguably the most important page for a cost comparison net site, and users need clear information and the ability to control and adjust the results as they wish.
Powerful sorting and filtering functions are identified by the document as something that lots of sites need to improve on to make sure users can find the right product as basically as feasible.
In addition to this, the document suggests that sites must permit users to save their results and come back to them at a later date and offer the function of sharing results with other users, as lots of purchases could be collaborative decisions.
The document reveals that a lack of trust and brand loyalty is an issue for cost comparison sites and bad experiences basically compound this.
It cites that a great way to help win trust would be to explain how the cost comparison site works. With this greater understanding web users will likely be more forgiving when the user experience falls over due to an outside issue (such as a difference between the quote prices on the results and when on the insurance site itself). “The recession is a time when price comparison sites should be best placed to take advantage of the price-conscious approach of many consumers, but they seem to be suffering,” said Director at Web credible, Trenton Moss.
“To get back on track in terms of growth, these sites must improve upon key usability features particularly when it comes to the results pages. They should also attempt to design in more functionality that supports the collaborative approach many users' take when choosing financial products."
"Price comparison sites should also work on building greater brand loyalty and trust from users through transparent practices and support once users go off-site."