Biggest mistake that consumers make? Easy... not switching!

Eoin Clarke, managing director of independent price comparison and switching service, Switcher.ie, answers our consumer questions this week.

Virgin Media has been named Ireland’s Best Broadband Provider again in the Switcher.ie Awards this week. Why did they win?

Yes, Virgin Media scooped the top broadband prize on Thursday. Our awards are judged mainly using a mix of in-depth consumer surveys, speed tests, and customer ratings. Virgin Media won because it got the highest combined scores across all categories. Particular strengths included broadband speed, customer service, and value for money.

Tesco Mobile were voted Best Mobile Operator – is it surprising that this didn’t go to a bigger provider?

Again, Tesco Mobile got the highest combined score across the surveys and ratings. Tesco Mobile has gone from strength to strength in recent years and customers were especially impressed by its customer service and the in-store experience.

The savings from switching are huge. Yet only 15% do it? Why?

It’s true, domestic energy switching levels tend to remain around the 15% mark each year, while broadband switching is probably closer to 30%. Research we’ve done suggests that the main things that put people off switching are not wanting to get tied into a contract, not being able to tell if a new supplier would save them money or thinking that switching is too much hassle. In reality, anyone who hasn’t switched after their minimum term is paying above the odds for their energy and broadband.

Ever get frustrated at how few people switch?

Our role is to educate consumers on the benefits of switching – and tell them how straightforward it is. For example, people might be afraid of change or loss in service if they switch energy supplier. Yet all suppliers use the same pipes and cables to supply energy to the home, so the electricity and gas service remains the same, regardless of supplier. The biggest difference between suppliers is the price you pay – at the moment, an average dual fuel customer can save up to €372 by switching from the standard to the cheapest deals. Once someone switches and sees how easy it is, it’s likely they’ll switch again – in terms of energy, they need to do it yearly.

Are we too busy for switching?

There’s no doubt that many of us seem to be busier and busier all the time. However, I think there’s a misconception that switching is a hassle and is going to take ages – actually, switching broadband and TV, energy and mobile phone deals would take the average person less than an hour in total – and savings could add up to over €1,000.

What’s the biggest mistake consumers make?

Not switching, obviously! On top of this, lots of us pay for services we no longer need or want – it’s a good idea to review monthly payments regularly. One good example of this would be ‘bells-and-whistles’ TV plans – the majority of consumers watch less than a quarter of the channels we pay for. So it might be worth cancelling your TV package and opting for a broadband-only deal and streaming service instead.

Do the regulators really help consumers?

There tends to be a lot of flak directed at regulators, no matter what the industry. However, the recently rebranded Commission for Regulation of Utilities has brought in some initiatives lately which should be of huge benefit to consumers. There will now be a requirement for suppliers to display an estimated annual bill in their marketing – removing confusion around the various discounts on offer. Suppliers will also be required to give customers 30 days’ notice when their discounted tariff is ending –similar to an insurance renewal notice – and to issue an annual prompt to customers who have been on the same tariff for three years or more. This should really help to promote switching and competition in the market.

What was your most expensive, fun purchase?

I visited China for one month, it was an amazing experience.

What was your best financial decision?

One of the best was paying for my diploma in digital marketing in 2007 – it opened new doors in my career.

What is the one little luxury you’d like to treat yourself to?

I’m big into movies, one day I’d like to watch a premiere in the Chinese Theatre in Hollywood.