Download Re-intermediation (and some Services Marketing)

Chapter 11
Re-intermediation
Overview
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Traditional View
Distribution Channels
Simple
very complex
Vertical Marketing Systems (VMS)
– why necessary?
Electronic View
• Productivity gains
• Reduce costs
• Redefinition (elimination) of
distribution channels
– McKinsey nurtured this
• Insurance company’s efforts to
implement
E-Commerce
• The delivery of the policy is selected
by the customer
• Online courses available to the
brokers, dealers and agents
– pay for courses through the web site
• Site maximizes security and
encryption software
– evaluating possible combined solutions
(e-commerce with CRM, ERP, SCM)
Business Intelligence
• Surveyed customers
• Attitudes toward SST (self service
technology)
• Met with intermediaries
• Discovery for company
• Solution
– re-intermediation
Customer Relationship
Management
• Two customer groups to focus on
– internal customers (brokers, dealers
and agents as external sales force)
– external customers (end-users; policy
holders)
• Case focuses on both
• Internal customers
– re-intermediation provided electronic
supplement to the brokers, dealers,
agents
Customer Relationship
Management
• Internal customers (cont.)
– Portal to conduct business
electronically
• External customers
– Customer communication focus on
the web site
– Almost 2100 links to the company’s
site
– Alliances with various groups leading
to a referral to broker, agent, dealer
Customer Relationship
Management
• Illustrates the Services Marketing
Pyramid (Chapter 10)
• firm to sales force (internal marketing)
– uses web site to recruit sales force
– online insurance training
• external sales to external customers
(external marketing)
• firm to customers (external marketing)
using web site for information and
sales/lead generation to external sales force
Supply Chain Management
• Somewhat “blurred”
– External sales force is also distribution
channel
• Productivity gains
– reduced paperwork
– increased broker, dealer, agent
convenience for managing the process
(24/7 availability)
– created more time for sales force to
generate more business
Enterprise Resource Management
• Leveraged the external sales force
portal concept
• Created one for internal employees
• Reduced routine human resource
inquiries
– HR staff focused on more complex
issues
• SCM productivity gains lowered the
cost of doing business
Value Bubble
• Evaluated the external marketing site
– Site was leveraged during September 11
tragedy
• External sales force site is in prototype
• Recognized as differentiator and leader
– reinforcing the brand among sales force
• Engage, Retain and Learn are key stages
– portal (internal marketing) and public site
(external marketing)
• Relate is for the future