Help
CEOExpress Home | News Center | Contact Us
  McKinsey Quarterly

 
Industries
Automotive
Energy, Resources, Materials
Financial Services
Food & Agriculture
Health Care
High Tech
Media & Entertainment
Nonprofit
Public Sector
Retail
Telecommunications
Transportation
Function
Corporate Finance
Economic Studies
Governance
Information Technology
Marketing
Operations
Organization
Strategy
Search Articles:

All of these words Any of these words
Summary
Please note: The McKinsey Quarterly has agreed to a special arrangement for CEOExpress members that allows member access to their articles. Articles must be clicked on directly through the links below to gain access to this group of articles.
Steering Customers To The Right Channels
Customers who use a number of channels—stores, the Internet, direct mail—have a tendency to spend more money than those who use only one. But in many industries, the proliferation of channels has had the unintended consequence of increasing costs and diminishing revenues. To regain control, companies should actively guide customers to the right channels during sales and service by offering incentives. Carefully tailored "routes to market" can become important sources of differentiation, as they are difficult to imitate and can become strongly associated in the minds of customers with actual product or service offerings.

The take-away: Companies can reduce their sales and service costs, increase their revenue per customer, and penetrate underserved segments by guiding customers to the most appropriate channels. To do so, companies should gain a clear understanding of their channel economics and develop plans to manage relations with their channel partners.
  


Articles provided by The McKinsey Quarterly
© 1992-2003 McKinsey & Company, Inc

 

Copyright ©1999-2021 CEOExpress Company LLC.