• silicon.com
• Management
• CIO Insights

By silicon.com, 13 June 2006 16:00

The internet has changed so many of our habits - not least of which is making us smarter about shopping.

Looked at from certain points of view, shopping for financial products is no different from buying trainers or a microwave - it all comes down to price.

So when a company comes along and starts to compare the prices of those financial products, financial sector organisations are faced with two choices - accept it or fight it.

Most have played ball and used the system to their advantage, some even developing new products specifically for these comparison shopping sites. But others have shied away, blocking IP requests from the comparison sites to avoid being listed.

The companies that have adopted such strategies are doing themselves no favours. In the consumer's mind, comparison sites are trusted forms of information and are frequently used by the national press to demonstrate the best deals currently available.

If your company name is not on the list, people will wonder why. They might think your products are too expensive to be included in the top 20, even if that's not actually the case.

It's true that comparison websites don't tell the whole story - they merely look at price and don't take other factors such as service or quality into account. However, those companies that genuinely believe they have better service, for instance, should use the price comparison engines as a way of drawing people into their own websites where they can explain their case fully.

Even if a particular company's financial products are more expensive than the competition, it's much better to get the brand out in front of consumers and give shoppers the option of clicking through to a website than simply allowing rivals to rake in all the business.

Who knows - perhaps the consumer will be unhappy with the cheapest option and when they go comparative shopping next time, they'll be looking for someone who offers more for their money.