dis•in•ter•med•i•ate
Have You?
Should you?
Can you?

“Disintermediation.” In the marketplace it means going direct. Think about it: How much money could you wring out of the sales process if you could skip the middleman – or reduce “his” role?
It got us thinking: Under what circumstances can virtual transactions suffice on their own? How can online education help the cause? When is live interaction required?

What we’re hearing about direct marketing, and going online:

• It has to be simple enough to be grasped without live interaction. This can be helped by online education that can anticipate and clarify questions so that live interactions can be eliminated or their time reduced.
• The offer needs to have a reasonable price tag. This range varies by a customer’s familiarity with a product category and the level of perceived risk incurred by making the wrong decision.
  – Auto insurance, for example, commands annual premiums into the thousands with very little human interaction. That’s because people have become used to buying it online.
  – Buying individual health insurance online is less mature, has significant consequences for a wrong decision, and comes with a higher premium. Before anyone agrees to buy, education and live interactions are almost always required.
• The product has to have limited underwriting. For insurance, that means few questions about prior experience. For credit, it usually means instantaneous approval as opposed to verification of income or net worth. Protracted approvals frustrate the online buyer into abandoning the process.
• Ideally, the product should be sold in one session. Once a customer “leaves the store,” it’s hard to get them back. But if one stop isn’t realistic for your product, consider online education. It can help hold a prospect’s interest, even if they are transferred to a live representative or the application process is interrupted and resumed later on.

Which products can be disintermediated and which can’t?

Many products are evolving to direct purchase but often with an educational component that anticipates and responds to questions. Here’s a sampler:

How we can help. We’ve taken complicated products and services and simplified them through online education and delivery, so people are more likely to embrace them. Bring us an offering that you think might have promise. We’ll help you make it happen.