unique
service in france
departs from d&b tradition
"D&B France ignored
traditional thinking when it created a "basic" D&B information product early
this year.
The product is a
business-information service delivered to customers by the telephone company, which
handles all billing. It’s as fast and easy to use as the telephone.. And; it is
reaching people who have never bought D&B information before. That’s
Eurodun, and
its creation by D&B France represents an entirely new way of thinking about customers,
products, technology and marketing.
Eurodun was developed and
introduced with rare speed and at extremely low cost, thanks to technology developed by
the European Business Information Center (EBIC) that integrates its systems with a range
of computing environments and a new team approach during its developments. It employs the
services of two third parties: France Telecom, the country’s telecommunications
authority, delivers Eurodun to customers; Axone, a local computer-service bureau, gives
D&B France enhanced control over the fabrication of Eurodun and helps ensure its
immediate availability to customers. EBIC acts as a data server, while DunsNet is the link
between Axone and EBIC.
More important, customers can
use Eurodun without committing themselves to a Dun & Bradstreet contract. Billing for
the service is handled completely by France Telecom, which receives approximately 15
percent of the revenue.
"Eurodun is a unique
product," says Hugh Latif, general manager of Dun & Bradstreet France, "but
we have a unique communication channel here in France that isn’t available in other
countries. We deliver Eurodun to customers through the Minitel." In the
mid-1980’s France Telecom introduced the Minitel – a small information terminal
provided to subscribers nationwide as an addition to its basic telephone services.
Eurodun is available through a
feature of the Minitel called Kiosque, explains José- Maria de Heredia, marketing and
development director of D&B France. "Kiosque services are made available to
telephone subscribers on a pay-as-you go basis and are charged to their telephone
bills," de Heredia says.
When it was introduced at the
end of January 1991, Eurodun provided customers with access to basic information on more
than 2 million businesses in France and 7 million businesses in the rest of Europe. This
includes company name, address, line-of-business, foundation date, ownership,
capitalization, sales, profits, number of employees and legal information. Eurodun also
provides daily information on business failures, and industry-wide financial ratios and
payment norms.
Generally, customers use
Eurodun for low-value, low-risk financial decisions and for business-to-business marketing
and sale prospecting purposes, de Heredia says, " Of course, we’re not entirely
sure about this," he continues cheerfully, "because we don’t always know
who they are."
Accepting the element of
Eurodun required an adjustment in D & B’s traditional thinking about who can
obtain business information and how they can use it, says Hugh Latif. "Normally,
customers must agree to a contract that emphasizes the confidentiality of information such
as credit ratings and payment records, and restricts how the information can be
used," he explains. Most contracts also specify that customers will purchase a
guaranteed minimum amount of D&B information during the year.
As part of D&B Information
Services’ worldwide effort to increase the flexibility and accessibility of its
information, its other units are introducing "pay-as-you-go" services that do
not require minimum purchases but which have certain restriction on the information’s
use. These services include D&B Express, first introduced in the U.S.;
DunsCheck,
created by D&B Australia; Reportline in the U.K.; and the executive Information Card
in Benelux.
"We avoid the restrictions
by not making sensitive information – credit ratings and payment experiences –
available on Eurodun." De Heredia says.
The volume of traffic generated
by Eurodun clearly demonstrates its popularity. In February, its first full month of
operation, Eurodun generated about 12,000 telephone calls. In October, boosted by heavy
advertising Eurodun generated more than 26,000 telephone calls, compared with about 35,000
inquiries for traditional D&B France products.
Results to date suggest that
Eurodun is largely generating new business, and that there has been little
"cannibalization" of products that carry more information and larger price tags.
In addition to Eurodun being a
successful product, it also is an effective marketing channel for D&B France’s
traditional services. "The service has a built-in message facility for customers that
would like more information on Dun & Bradstreet," de Heredia says. "We
believe that at least 30 percent of our new business now is being generated through
Eurodun."
Best of all, Eurodun has been
immediately profitable. The revenue from the new service has covered all its development
costs and the advertising program, "We’re budgeting a 35 percent margin for
Eurodun in 1992," says Hugh Latif.
