Page 176 -
P. 176
166 Managing Customers Through Economic Cycles
Figure 7.11
offerings. In doing so, they stopped a steady decline in good
customers, while evolving moderately profitable customers
into solidly profitable customers.
Information mastery and distribution
channel effectiveness
Most organizations, before they began their road to compe-
tency, had distribution channels that operated with little
knowledge of individual effectiveness and efficiency. In
addition, as radical market changes caused radical changes
in distribution channels, understanding the effect on custom-
ers was largely guesswork.
After developing further competencies, one leading
Australian bank was able to reduce its channels by 20% and
increase sales concurrently by 3%. This resulted from
knowing the intimate interactions each customer had with
each distribution channel and then fine-tuning these interac-
tions to optimize value and profitability.
