One Step Closer to the End?
Updated: Oct 31, 2019
Warning: this article may offend some of our competitors.
Last week, iSelect finally fell afoul of the ACCC due to alleged immoral (and possibly illegal) behaviour towards consumers. The matter is now before the Federal court.
Personally, I am amazed it has taken so long for them to be held accountable – the whole industry knew what was going on and sadly most consumers did not. They are not alone and there are still shonky practices going on, hands up who has received an unsolicited call from a bogus energy company recently?
I have long called the end of the comparator model as we know it today, this model involves:
Being drawn in by heavy advertising with the promise of looking after all your household costs;
Having to register interest with contact details around a single product (i.e. energy), but being none the wiser about what would be the saving in dollars;
Receiving countless annoying calls – harassing you to buy, not just the product you were initially interested in, but other unrelated products (i.e. broadband, household insurance) . Again not knowing what you would actually save by switching;
Not knowing if the offers presented actually compare well with all offers in the market.
The unfairness of this service has long motivated us to change things.
We strongly believe the consumer should:
1. always get a fair deal;
2. always know (with accuracy) what they would be saving by switching;
3. only be offered new products that are in the consumer’s best interest (i.e. when there are substantial savings or new well suited features available); and
4. not be responsible for a lazy commission trail being paid – which is ultimately passed through to the consumer as a cost to serve
Digitisation means we can now create a better model and we are well on the path to bringing fairness, transparency and better value to the consumer. This new model will be a seamless, fair and convenient concierge service that is offered by banks and membership organisations, through their banking apps.
Digitisation means we can now create a better model and we are well on the path to bringing fairness, transparency and better value to the consumer.
Ultimately, the retailers will also win with this new model, as they are currently being held hostage by the marketing machines that hog the attention of the consumer. When the lazy commissions are removed then the retailer can realise some profit in the first year and subsequently be more creative with their product offerings (to the benefit of the consumer).