John is a serial entrepreneur. He built his previous company JCP to become the UK's leading internet transaction security business. JCP was acquired by Sun Microsystems in 2000 and after extensive research into the price comparison marketplace, John launched BeatThatQuote.com in 2005.
In April 2008, BeatThatQuote.com was voted number one in the 'Start-Ups Top 100' new companies.
MYI: What makes BeatThatQuote.com different from other financial services price comparison sites?
JP: I would say that of all the UK aggregators we are probably the most innovative. We are the only aggregator focused on partner based distribution and have over 550 white label sites including the Daily Mail, Argos, MSN and Yahoo!
We were the first aggregator to launch cash-backs and other consumer incentives through our partners and the first to introduce completely transparent online and real time management information to our white label clients. We really help our partners develop their white label businesses, assisting with search, email and display campaigns.
We also have by far the best technology. All of our products are built on a flexible architecture that shares common components: security, distribution systems, management information etc. This has allowed us to roll out more products more quickly and with less resource than any of our competitors. It further allows us to react incredibly quickly to market changes.
Just before Christmas 2008 one of our partners had been let down by their previous aggregator and needed a full white label solution. We built it in 2 hours on Christmas Eve.
MYI: How many products do you offer comparison services on?
JP: We cover almost every personal finance product with our own content – only one other aggregator can make that claim, including: car insurance, home insurance, travel insurance pet insurance motorbike and commercial vehicle, mortgages, credit cards, loans, home and car insurance, annuities and investments. Last year we extended our offer to include utilities, travel and shopping price comparison.
We've completed over 70 insurance integrations this year across our product range – again that shows incredible speed in building up our panels.
MYI: How do you ensure quotes are accurate?
JP: We have full question sets which mean very few assumptions – on Tesco Compare home insurance, for example, unless you can answer “Yes” to a string of criteria/assumptions you cannot even get a quote.
We also monitor prices and “quote footprints” on a regular basis, and share that knowledge with the insurer panel to increase their reach, which in turn benefits customers by ensuring the widest range of prices.
MYI: How have you fared in 2009 and how do you see the business developing next year?
JP: As a result of the credit crunch 2009 was a tough year for us along with other aggregators but we've diversified our product base, diversified our marketing channels and made our business even more efficient.
The main issue has been a huge reduction in the supply of credit products which in turn reduced our average revenues per transaction. By focusing our business more toward insurance and home services we have ridden out the storm and firmly believe the worst is behind us.
MYI: Is the price comparison market saturated?
JP: In some ways yes and in other ways no - we feel that there are two elements to delivering price comparison services: the underlying technology and data which powers the comparison, sends leads to product providers and provides management information; and the marketing activity that drives consumers to a site.
The former is most definitely saturated. We can and do (to our white label partners) provide the technology and data infrastructure at a far lower cost both in terms of set up and ongoing operating costs.
The latter most certainly not! Any organisation that has a captive audience to which it can provide aggregation services should do so. The revenues can be very significant and with very little cost and risk.
MYI: What are your predictions for the online price comparison market next year?
JP: I guess this follows on from the questions above. We predict the following:
- Revenues from credit products have already started to firm and we see these continuing to rise.
- Insurance aggregation will see the introduction of more consumer incentives in the form of cash-back and other techniques to attract consumers in an ever more commoditised service.
- There will be more fragmentation in terms of retail distribution as media and retail companies see the huge revenue opportunities others are already making.
- We have already seen many “pure-play” aggregators go to the wall and again we believe this trend will continue.
