Switching brands gets easier online

28 May 2014

The culture of staying loyal to one brand is shifting quickly to a space where the power is now in the hands of the consumer to switch between brands, products and services. Loyalty is no longer the most important factor in client-brand relations.

Carl Louw, chief marketing officer at hippo.co.za, the comparison website, says, "Consumers across the globe are realising how easy it is to switch, especially online. The switching economy places the power in the hands of the consumer. The company's site helps them utilise that power to make better financial choices by comparing quotes and benefits from a range of insurers and other financial service providers."

Accenture research recently found that customers in emerging markets are more likely to switch providers due to poor service - particularly within the retail, financial, ISP and mobile provider industries. Unlike respondents in other emerging markets, South Africans were more likely to switch despite being offered preferential treatment or rewards for their business. The research revealed that 76% of SA consumers switched service providers in the past year due to poor customer service.

"This is where the benefit of comparing costs and features online becomes crucial. It can be quicker to switch financial service providers on the website than to lodge a complaint. Over 90 000 people visit the site to compare quotes and benefits of financial services every month. It is positive to see how many South African consumers are using their power to switch."

For more information, go to www.hippo.co.za.