Compare the Market shop

In 2005, Comparethemarket.com, an insurance comparison website, was launched to the UK public. Since then it has been an online operation; but last week it announced it will open its first store. But why would a brand that’s generating a cult following online begin to sell offline?

The website’s first physical store will be based in London’s Regent Street.

To promote the store, the company has been utilising its social media presence. Compare the market has a large following both on Facebook and Twitter. The brand has cleverly used this audience to run teaser campaigns.

Aleksandr Orlov the Meerkat, the famous brand mascot, announced the store would be opening on 28 October 2010.

The company is yet to say whether it will use its famous spoof brand, Compare the Meerkat, in the store. But if I were in charge it would be top of the agenda.

The insurance comparison website market is highly competitive, so this could be an interesting way for Compare the Market to distinguish itself in the physical world.

The company has a major following for its spoof brand. A quick search on Facebook shows hundreds of Fan Pages and a browse of Twitter shows Tweets from people who adore the adverts and Aleksandr.

The major problem with the store concept is that people’s buying habits for insurance has changed. People don’t have time to go to a shop to get quotes and like to do it in the evenings or when it is most convenient to them.

It could prove tricky to get around this, even with a cult following.

I always buy my insurance online. It’s quick, simple and can be done in an advert break. I don’t know how much of a discount I would get for going into the store, if any.

The location of the store is well chosen. Regent Street is one of the most popular shopping streets in the country and the shop will get a massive amount of attention; but will this translate into sales?

The street also attracts hundreds of tourists who aren’t going to buy insurance – so maybe not the best choice. Also, I don’t know how many people want to get a quote too far in advance of the day they need to renew their insurance, and going to this shop will require some form of planning. Or maybe they will need an appointment?

There are a lot of questions that we will not know the answer to until nearer Halloween. I just hope people don’t mistake a promotional person in the Alekandr costume as a child trick or treating.