Companies often misunderstand the problem of users leaving their platforms. Disintermediation is a sign that your customers don’t think you are adding as much value as you think you are. Firms struggling with disintermediation can take simple steps to stop the bleeding before it’s too late — if they understand what’s really taking place. They should consider six factors: urgency, rake, risk, skill, frequency, and modularity. The solution for disintermediation is quite simple: Create more value than you take. Stop playing the role of toll-taking gatekeeper and start playing the role of value-adding partner.
associated with getting the deal to happen as distinct from producing the work itself. In economic terms, these are known as “transaction costs.” The platform’s role is to lower them compared to the next best alternative. Understanding this principle gives executives control over the outcome even if the superficial attributes change.
Hiding supplier contact information to prevent direct communication. For years, Angies List hid home service provider contact information, which limited interactions and growth.Secret shoppers and secret sellers who make such proposals to test partner loyalty. Giving users software tools to enhance the production, delivery, quality, or consumption of the product or service. Instagram and Vimeo offer filters and image editing tools that not only reduce costs for producers but also help them create value for consumers.
Shifting monetization to the point where the platform adds the most value. ZBJ introduced an optional pricing model that shifts from a transaction fee to a subscription fee. Once the fee is paid for the first deal, suppliers’ costs for each new deal are zero. When further use of the platform is free, sellers prefer the benefits of automated tracking and billing that happens on-platform.
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