1. Cutting in the Middle Man How maximising intermediary relationships can help drive your business forward Francesca Brosan, Chairman, Omobono Limited. April 2010 OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk

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Companies have historically been highly aware of the important role intermediaries can have in driving their business forwardCompanies have historically To misquote Mark Twain, 70 per cent of business inbeen highly aware of therumours of the demise of the financial services, and up to 40important role intermediaries intermediary are grossly per cent of business in othercan have in driving their exaggerated. sectors, comes throughbusiness forward, with 70 per intermediaries.In these uncertain times therecent of business in financialare two reasons in particularservices, and up to 40 per centwhy it is more important thanof business in other sectors,ever to continue to build strongcoming through these channels.relationships with theBut in this the internet and social intermediary audience.media age, the predominance ofThe first is a simple rule ofsearch and online aggregationbusiness: relationships are thesites throws up a question aboutcurrency of business; thosethe continuing value of thecompanies who put time intointermediary in more than oneeffort building thosemarketplace. Do you need anrelationships will gainintermediary if you can simplycommercial advantage.search for what you want andProducts and services arethen buy it direct online?extremely similar, and can beThe answer is that purchase copied overnight. When allchoice is not that simple. Whilst other things are equal it is yourwe may be happy to buyrelationship with a company, orstraightforward products online,with a brand, which makes themore complex purchases tend difference between who youto be ones for which well seek chose to work with.advice, from friends andcolleagues and fromprofessionals in the sector. OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk 3. Insurance aggregation sites are So if we believe that thea case in point. Between twointermediary channel iscompanies listed equally high onimportant, and we believe itthe table, you are more likely to needs to be worked on whatbuy from the company you areshould we be doing and wheremore familiar with, rather theshould we be spending ourone at the top youve never tightening budgets to bestheard of. It is relationships,effect?established over time, that keepThe famous Man in the Chaircustomers choosing you overadvertisement from McGraw Hillthe competition.argued strongly in favour of theThe second reason is apower of advertising to createcommon feature of the current the type of familiarity we haveeconomic climate. There are nobeen talking about. Butnew customers. And those that intermediary communicationsare in the market are highly risk are at the other end of theaverse. They are looking forspectrum from this. Most of thereassurance in their buying people you are talking to knowdecisions, not going out on a who you are. They also knowlimb to do something theyvewho your competition is (and arenever done before.likely to be working with them aswell).This is where the intermediaryrelationships feature withstrength. New business is morelikely to be driven from thecustomers you are alreadydoing business with. If theirrelationship is with anintermediary and you stoptalking to the intermediary,guess whose products orservices will be recommended?Not yours.OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk 4. Your brand is beingexperienced every day in lotsof different ways. Whats in thetin is a complex range ofproducts and services and itsexperienced by a wide range ofpeople at the customer end (notjust the cat). Administrators, sales staff,advisors, principals. They areall interacting with the provider.And every day their experienceof that provider influences theirOne argument is that you dontpropensity to recommend you toneed to communicate withtheir customers. All of whichintermediaries when budgets puts communications in a veryare tight because your existing different light to something youbrand equity will carry you switch on and off to generatethrough. But sadly not everysales.brand has the equity ofWhiskas. This is because doingAs the diagram (Fig.1) shows business in financial services is the decision making process for simply not the same as buying an IFA or broker when cat food. Apart from the obviousconsidering purchase decisions. reasons (no cats involved), Products and services are table product and service delivery is stakes. very different in B2B.Its vital to get them right but the If you buy cat food the product isthings that will make a likely to be the same week in difference to their selection of week out. It delivers you rather than someone else consistently to you (or at leaston panel will be more complex your cat). In financial services it than this. doesnt quite work like this.OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk 5. It will depend on a dualAs Figure 2 shows, corporateassessment of whats good for relationships are complex.the customer and whats goodDoing it better means looking atfor their business. What begins every aspect of theas a rational analysis becomescommunication with customers.highly influenced by theThis, in turn, means that the roleemotional factors which driveof marketing becomes that of anperceived differentiation.enabler, linking parts of yourCommunications with channel organisation to parts of theaudiences are often handled bycustomers organisation.a specialist team, maybe evenCommunications become not aone person, a key accountsales tool but a value addingmanager. But because of thefunction to build the relationship.complexity of the customerexperience of your brand, Finally, dont forget that theleaving one team or individual to intermediary experience of yourmanage it means that you arecompany is heavily influencedpotentially missing vital by a broader ecosphere whereopportunities to strengthen the the opinion of the regulator, ofrelationship. other advisers or the public willhave an impact on theirpropensity to do business with Fig. 1 you. Source: Research conducted for Legal & General, February 2007 OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk 6. Mapping these connections, and relationship), 80 to 100 per centidentifying where theof your communications hit therelationships can be bin. If you are a preferredstrengthened, in particular viasupplier, only between 20 andimproving digital engagement is60 per cent of youra valuable exercise. communications hit the bin.Fig. 2This means that between 40 and 80 per cent dont. Some retention email campaigns, which are supported by client centric micro sites for example, are getting 70 to 100 per cent conversion rates.Building better intermediary relationshipsIntermediary relationships areSource: Omobono Limited, April 2009 multilevel. You are reaching notEnterprise Relationshipone but a whole layer ofManagement, the process used personnel within the company.by Omobono to map theAnd, as we have seen, they areaudiences and identify the interacting with a range ofrelationship management task personnel within your company. reveals opportunities which are Administrators may be morenot apparent from a linear likely to interact with your ITperspective. systems than your people, salesThe more value you add to thepeople and advisors wantrelationship, the more it pays insight which they can use inback.their conversations with customers. Principals will want 3According to Marketwatch if input which helps them run ayou are a non-preferred supplier better business.(i.e. you dont have aOMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk 7. Digital communications has a significant role to play in building intermediary relationships. CONCLUSION All intermediaries are not the Once the task has beensame. Like any other audience, clarified, the process ofsegmentation by size, by identifying the contribution thatcustomer type and by product digital communications canspread will reveal useful insights make to improve thewhich will enable you to build relationship.the relationship further. After all, the hardwiring isAs the diagram (Fig. 3) shows, already in place. The extranets,there is a straightforward the intranets, the customer logapproach to developing in sites are already there. Nowintermediary relationships.it is simply a question of working out how to use them better.Fig.3 Source: Omobono Limited, April 2010 OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 info@omobono.co.uk | www.omobono.co.uk 8. Sources: Relationships driveWe drive your relationships. 1. Research conducted for Legal your business.& General - February 2007 2. Omobono Limited - April 2009 3. MarketWatch,http://www.marketwatch.com ERM helps world class 4. Omobono Limited - April 2010For further information on how organisations driveOmobono helps its clients create value from their businessvalue from intermediary relationships by examining therelationships please contact Fran ways they interact with their directBrosan (fran@omobono.co.uk) or and intermediary customers,Ben Dansie (ben@omobono.co.uk) partners and staff; and how that ison 01223 307000. For Omobonos measured to help achieveEnterprise Relationship Map, see organisational goals, deliver towww.omobono.co.uk customers and create mutual value. We look largely at the contribution online technologies can play, andAbout the Author: how companies canFrancesca Brosan is Chairman maximise value from theand Founder of Omobono Limited, infrastructure put in place over the the digital communications services past 5 10 years. By exploringcompany. A former Board Director alternative approaches to improvingof WCRS, her career has spanned B2B marketing effectiveness, ERM consumer advertising, PR, live enables us to think about marketingevents and digital. She now differently, to put it back to its focuses on B2B strategy for the original place; where marketing hasagencys corporate and public a meaning and purpose beyond sector clients. Francesca is the communication and becomes aauthor of 3 IPA Advertising business essential, not a business Effectiveness Awards and is a expense. regular speaker and contributorto marketing forums.uk.linkedin.com/in/francescabrosanOMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UKT +44 (0)1223 307000 | F +44 (0)1223 365167info@omobono.co.uk | www.omobono.co.uk