This document discusses disintermediation as a common hurdle for platform businesses. Disintermediation occurs when a user bypasses the platform to directly transact with an end business, cutting out the platform. To avoid this, the document recommends that platforms 1) incentivize users to transact on the platform through unique offers, rewards, and ease of use, 2) track all online and offline interactions between users and businesses, and 3) report the value created by the platform to maintain involvement in the transaction process.

1. Disintermediation
a common hurdle for platform businesses

2. WHAT IS DISINTERMEDIATION?
The removal of intermediaries in economics from a supply chain.
For platform businesses this means:
 User doesn’t transact on the platform
 Goes around to the end business
 Cuts out the platform
This results in lost revenue opportunities.

3. HOW TO AVOID DISINTERMEDIATION
1.
Incentivise the
Transaction
2.
Track
Everything
3.
Report
Everything

4. 




In the absence of
a walled garden
encouraging the
user to transact on
the platform
reduces the risk of
disintermediation.
1. INCENTIVISE THE TRANSACTION
There are many tools
that can be used to
achieve this:

5. PROVIDE INFORMATION
A common cause of
disintermediation is the need to
ask a question or not getting
the information needed.
An example of done well is

6. The more hurdles to complete a
transaction, the more likely you
will be cut out.
Users want ease and speed.
REDUCE TRANSACTION
BARRIERS

7. Reputation can be key
when taking payment.
TRUST

8. Offering something on the
platform that users can’t
find elsewhere encourages
transaction.
UNIQUE OFFER OR PRICE
Cinema vouchers and free meerkat teddies.
Reward points.

9. COMMUNICATION
FLEXIBILITY
If your platform requires
businesses to be involved directly
in transactions, then a core part is
to connect buyers and sellers.
- 16% Incremental
increase in leads by adding SMS as a
communication path to car dealers.

10. There are multiple ways
users can communicate
with businesses.
Adding communication
options is advantageous
to platform lead
volumes, but they need
to be tracked.
2. TRACK EVERYTHING
End
Business
Form-Fills
Emails
Walk-ins
Phone
Calls
Web Call-
Back
Instant
Messaging
SMS

11. TRACK EVERYTHING
If you don’t track it,
you can’t claim it!

12. EMAIL & FORM-FILL

13. WALK-INS
Good examples are:

14. PHONE CALLS & WEB CALL-BACK

15. IM & SMS

16. Once tracked,
businesses need to
be aware of the
platform's
involvement.
3. REPORT EVERYTHING

17. SUMMARY: 3 MAIN TOOLS
1.
Incentivise the
Transaction
2.
Track Everything
(ONLINE & OFFLINE)
3.
Report the value
you are creating

18. Questions ???