iSelect hits the reset button
Comparison site operator iSelect has made a commitment to address the "substantial strategic and operational issues" that emerged in its performance during the December half. The company had problems in its call centre, its costs were too high, its branding needs a refresh and its technology needs an upgrade.iSelect suffered a deterioration of sales conversions during the half, mainly in its health division. At the same time, staffing costs and direct marketing costs rose.Revenue of A$66.2 million for the six months to December was up one per cent, compared with the previous corresponding period. Cost of sales rose 26.7 per cent to $49.6 million and administrative expenses rose 12.9 per cent to $19.9 million. The company reported a loss of $4.2million for the six months to December, compared with a net profit of $5.4 million for the previous corresponding period.iSelect operates in the online product comparison sector. It covers private health insurance, life insurance, car insurance, broadband, energy, home loans and personal finance products. Its three brands are iSelect, InfoChoice and Energy Watch.The company said leads in energy and broadband rose while leads in money and health were down, reflecting increased competition and increased cost per lead.In the health division, the company's largest business segment, operating revenue was down 16 per cent.The company said: "The decline in conversion [in health] can be attributed to decisions made to replace previously successful recruitment and training programs in the contact centre."The company said it was undertaking a contact centre "reset". It has moved from having no recruitment screening to third part screening of applicants and introduced sales skills and product knowledge into the training process."In addition, delays in investing in new iSelect brand creative and increased cost per lead pressures had a direct impact," the company said.Revenue in the life and general division was up 20 per cent and revenue in the energy and telecommunications division was up 34 per cent.The company is investing in a new customer relationship management system, iConnect, which will be introduced in all business units later this year.