Concepts Of Medicine Adherence And Its Economic Burden Nursing Essay

Concepts Of Medicine Adherence And Its Economic Burden Nursing Essay Even though 45% of all medications prescribed in the UK are for older people, it is postulated that up to 50% of older people are non-compliant with their medication (SCIE, 2005). The prescription of various medicines is central to medical care and the overall drug costs account to about 10 percent of NHS expenditures. Surveys carried out in literature enlighten us with the fact that approximately 30% to 50% of patients do not use of take their medications as recommended by their prescriber. (1). Statistics show that in 2007- 2008, the NHS in England spent  £8.1 billion on drugs if as many as 50% of the patients dont take their medications as recommended, this could mean that  £4 billion worth of medicines were incorrectly used (2) . Furthermore the additional cost of unused or unwanted medicines within NHS totals up to  £100 million each year. On top of that the estimated drug cost of unused or unwanted medicines in the NHS is around  £100 million annually (3). A Cochrane review Interventions for enhancing medication adherence concluded that improving medicines taking may have a far greater impact on clinical outcomes than an improvement in treatments (4). Therefore if the prescription is inappropriate in the first place it not only translates as a loss to patient but also involves the healthcare system and the society. The costs included here are both personal and economic. Concepts of Adherence and terminology There are three major terms which are commonly used in the literature to describe medication-taking behaviours i.e Compliance, Adherence and Concordance (5). According to Pound (6) initially, the term compliance was used to illustrate the medication taking behaviour, which was then replaced by the term concordance. The term compliance came into disfavour because it suggested that a person is passively following a doctors orders, rather than actively collaborating in the treatment process (3) Whereas concordance refers to the anticipated outcome of the consultation between doctors and patients about medicine taking It is viewed as successful prescribing and medication taking based on the partnership with the patient (6). However the most current, fashionable and accepted terminology is adherence, which is defined by McElnay (7) , as the extent to which a persons behaviour (in) in terms of taking medicines, following diets or executing lifestyle changes, coincides with advice given by health care professionals Adherence shifts the balance between professional and patient about the prescribers recommendations. Pound (6) states that the above mentioned three terminologies tend to be used interchangeably but are incorrectly applied. Adherence can be viewed as the central aim, concordance is the process used to apply the central aim compliance is the outcome of the process. The benefits of medication might be restricted thereby causing a further deterioration in health as a consequence of non-adherence. . On top of this the economic costs do not only translate to wasted medicines only but also include the knock on costs which arise from increased demands for healthcare if (on the whole) health deteriorates. It is hence due to this reason that non-adherence is a major issue and should not only be seen as the patients dilemma. A fundamental drawback is represented in the provision of the healthcare, which is often due to a failure in completely agreeing with the prescription in the first place or to recognise the appropriate support that the patients might require later on during the treatment. Hence addressing non-adherence is by no means about getting patients to take additional medicines. Therefore tackling the issue of non-adherence involves the initial understanding of patients opinion on the medicine and then the various reasons to as why they are/m ight be reluctant or unable to use them. Causes of non-adherence There are many causes of non-adherence however they fall into two main overlapping categories i.e intentional and unintentional. Both types relate to the lack of an established pattern of medication taking which led to the incidental omission of medicines and may be experienced concurrently (8). Purposeful or intentional non-adherence occurs when a patient makes a specific decision not to take the prescribed medication. The anticipation of drug-related side effects and general dislike of taking medicines are common causes of intentional non-adherence (9). While accidental or unintentional non-adherence occurs as a result of forgetting or misunderstanding instructions about the drug schedule .Unintentional non-adherence is proposed to be range from a random departure to medication omissions from a prescribed treatment regimen (10). Hence the main features of unintentional non-adherence focuses on altering medication contingent on self assessment or perceptions of mental health, stress or anxiety, forgetting to take medicines or simply altering the doses of medicines to fit in with daily chores. A research carried out by Svensson (10) Kippen (11) showed that older people adherent with their medication often link the administration of medication to specific lifestyle events, location, time, and patterns of daily activities. Below table 1.3.1 shows the common perceptions and characteristics of adherent and non adherent medication taking behaviors. Table 1: Shows common perceptions and characteristics of adherent and non adherent medication taking behaviours. Perceptions related to medication taking behavior Intentional Non-adherence Unintentional Non-adherence Feeling unnatural taking medicines Fears of prescribing errors/addiction Life style change/ Disruption to daily routine Adverse effects of medicines Lack of faith in the prescriber Drug related memory loss/ Forgetfulness Long term risks of medicines Failure to accept diagnosis Altering dosing regimen Past experience of medicines Dislike of taking medicines Being asymptomatic Lack of comprehension of the need to take medicines. Testing medicines against symptoms Period of illness Vulnerable group of people Of all the age groups, medication taking behaviour in older people is of the highest concern. This is due to multiple reasons as described by Huges (12). Firstly, older people are highly likely to suffer from multiple diseases. Secondly, older people frequently administer three or more medicines concurrently to manage these conditions and third as a result of poly pharmacy, they are increasingly likely to mismanage their medicines (13). Furthermore, research shows the following as different lay beliefs by older people on medicine taking The need to reduce the symptoms of hypertension, to feel physically better (14). Fear of complications and desire to control blood pressure (10). Positive confidence in the prescriber (15). Apart from the elderly, another age group, where non- adherence is becoming a significant problem is in the pediatric population. In one of the studies carried out by Bush (16) it has been shown that one-third of the children in grades 3 to 7 reported they had used one or more prescription or non prescription medications in a 48 hour period. Adherence plans for children often require innovative approaches to encourage active participation in caring for their own health and how to use their medications appropriately. Consequences of medication non-adherence No matter how much critical the conditions are a patient might stick to his medication regimen, thus reflecting a loss of the health care system with increased use of medical resources, such as GP visits, unnecessary additional treatments, emergency department visits and hospital admissions. One of the recent research shows that about 3-4% of UK hospital admissions are as a result of avoidable medicine related illness (17) between 11 and 30 % of these admissions result from patients who dont use their medicines as recommended by their prescriber (3). In a similar manner, in 2006-2007, figures show that that the NHS expenditures on hospital admissions (excluding critical care costs) was approximately about  £ 16.4 billion (18). And the estimated costs of admissions, within the same year i.e. 2006 2007, resulting from patients not taking their medicines as recommended was found to be between  £36 and  £196 million respectively (18). Hence a reduction in these admissions and associated costs would be expected as the overall medicines adherence increases. Factors affecting medication adherence In accordance to WHO some of the main common factors reported to have a significant effect on adherence include: poverty, low level of education, illiteracy, poor socioeconomic status, unemployment, unstable living conditions, lack of effective social support networks, long distance from treatment centre, high cost of medication, changing environmental situations, high cost of transport, family related issues and culture lay beliefs about illness and treatment. In accordance to WHO the common belief of patients being the sole responsible for taking their treatment is misleading and most often reflects a misunderstanding of how other factors affect peoples behaviour and the capacity to adhere to their treatment. Adherence, in short, is a multidimensional phenomenon which is determined by the interplay of five different sets of factors, each of which are termed as dimension by WHO (5) . Each of these dimensions are listed as under and shall be discussed in detail Social/ economic factors Provider-patient/ health care system factors Condition related factors Therapy-related factors Patient related factors Social and economic dimension It includes limited access to health care facilities, medication costs, low health literacy, limited English language proficiency, unstable living conditions (homelessness), lack of family/social support network, and cultural beliefs about illness and treatment. Among these factors few shall be discussed in detail as under English language proficiency Both low health literacy and limited English language proficiency are barriers to adherence that deserve special consideration. Health literacy can be defined as the ability to read, understand and act on health information so that appropriate health decisions can be made. The risk of unsafe use of prescription medicine, is high among people with low health literacy and limited proficiency in English language due to the complex nature of the printed information that is available and because these people often do not receive adequate verbal communication or sufficient time from health care providers. Older adults with low health literacy may have trouble reading health information materials, understanding basic medical instructions, following prevention recommendations and adhering to medication regimens. Social factors Medication adherence is positively associated with social support and the availability of help from family and friends. Better outcome to treatment is observed in people who have social support from their friends/family (who assist them with their medication regimens) Cultural beliefs and attitudes Adherence to therapy, may overall be affected as a consequence of different attitudes which the patient may have towards health and medicine. Addressing these issues by the health care professionals is of prime importance so that the patients can get the most out of their medicines without compromising their health In case of adults, different components of health and healing cannot be explained by no one list. Therefore each individual must be considered on individual basis. Two major key components are requisite i.e asking non-judgmental questions listening, when it comes down to understanding the process of gaining an insight into patients beliefs (regarding health and healing) Patients belonging from various ethnic minorities bring along their practices in the health care system. This sometimes puts the health care professionals at test, who have been professionally trained in the light of western philosophy and medicine. Although groups of people may have beliefs or practices in common, yet that doesnt mean that they all can be classified under the same category. Within groups , the major differentiating factors include health status, educational level, sexual orientation etc (5). Respect Taking care of elder patients who belong from such backgrounds where they receive a great amount of respect (e.g. British Asian community ) should involve the element of respect combined with kindness. If they are approached with an attitude that consists even a tiny fraction of scolding or telling off, they might show resentment towards the adherence of medicine even though it may put their lives at risk. Therefore to put such patients at relieve it is of prime importance to show respect towards them . Traditional therapies and cause of illness Literature shows that two components such as religion and spirituality can play a vital role in the overall understanding of illness in its broadest sense among older people (19). The will of God for an improper behaviour, exposure to cold wind, natural causes etc are all different factors which older patients believe are major culprits for causing illness (20). This consequently leads them in such a situation where they end up giving God a chance to heal them or alternatively they seek help from a folk healer, try home remedies or pray for the treatment of their illness. An excellent example of this can be viewed within the Chinese culture where health may be seen as finding norm between ying yang, which is much more like hot and cold (21). Now patients who follow Chinese health belief may try such approaches which targets at restoring the balance between ying and yang (using different varieties of food and herbs). Likewise, some Asian ethnic groups rely solely on traditional remed ies for the treatment of long term conditions (21). At this stage it is also important to mention that the patient may not be cooperative if he believes that the health care provider may disapprove information surrounding the use of non-traditional remedies. This may ultimately lead to different interactions with the prescribed medications. Medication For some patients the preference lies in the dosage form or the size or colour of the medication. For example some cultures in Latin America view injections as more potent in comparison to oral medications. Likewise it is believed that Western medications are too strong by Chinese older patients hence therefore they might choose to not take the full dose of medicine (22). Health care system dimensions It includes different factors such as provider-patient relationship, provider communication skills, patient information materials written at too high literacy level, restricted formularies (changing medications covered on formularies), poor access or missed appointments, long waiting time and lack of continuity of care (23). The quality of the HCP-patient relationship is one of the most important health care system-related factors impacting adherence. Adherence to medicines can be increased as a result of good relationship between the patient and the HCP (which features the element of reinforcement and encouragement from the HCP), however there are many factors which have negative effect (24). These include lack of training and knowledge for health care providers on managing chronic diseases, lack of incentives and feedback on performance, poor medication distribution systems, short consultations, overworked health care providers, weak capacity of the system to educate patients and provide follow up, lack of knowledge on adherence and of effective interventions for improving it. Condition related dimensions It includes Psychotic disorders, severity of symptoms, chronic conditions, depression, lack of symptoms, mental retardation (25). Among these factors few shall be discussed in detail as under Chronic conditions and lack of symptoms Information within literature supports the fact that adherence to such treatment options (often declines as the time progresses) where medications have to be taken on an unlimited basis for the management of a chronic ailment. Example of two perfect clinical conditions which would fit into this profile include high BP and osteoporosis (26) , in which the symptoms are totally invisible to the patient. Furthermore, in the absence of symptoms these ailments lack the cues which would motivate the patient to adhere towards his treatment regimen. Depression A study carried out by Krueger (28) showed significantly lower rates of medication adherence among people with chronic illnesses and who are depressed. It is therefore crucial for the HCPs to be aware of the devastating impact, depression has on adherence consequently on regular basis should assess older patients who are sad all the time or who report symptoms of sleeping disturbances to eliminate the possibility of clinical depression. The slow onset of the pharmacological actions posed by different classes of antidepressants is classified as one of the major factor that contributes towards decreased adherence among elder patients. Adding on to that if the patient begins to experience the side effects (before even the symptoms are relieved), might consequence discontinuation of the therapy at a very early stage. In a similar fashion, a research conducted by Kemyttenaere (29) shows that once the patients (suffering from depression) start feeling bette,r they might stop the antidepre ssant therapy midway. Psychotic disorders A patients experience with unpleasant side effects is mainly one of the key causes which drives them from continuing their antipsychotic therapy. Literature shows that interventions which focus mainly on the persons attitude and beliefs about medications 9rather than on the knowledge) helps improve adherence. The addition of two key ingredients i.e Behavioral techniques motivational interviewing within compliance therapies, have proven to be very effective in improving medicines adherence among patients who suffer from psychotic disorders (31). Therapy related factors/dimensions It can be sub-divided into other different factors such as duration of therapy, lack of immediate benefit of therapy, frequent changes in medication regimen, actual or perceived unpleasant side effects, medications with social stigma attached to use, treatment requires mastery of certain techniques, complexity of medication regimen and treatment interferes with lifestyle or requires significant behavioural changes. Research by Tabor (32) Krueger (27) showed that decreased adherence is associated with medications with a social stigma attached to its use and with medications which require following complex regimen ( e.g. duration of therapy, number of daily doses required, or therapies that interfere with a persons lifestyle. Adherence can also be affected by other factors e.g. if administration of a medication requires the mastery of specific techniques like injections (32). In a similar fashion, when medications such as antidepressants are slow to produce effects, the patients/older person may believe that the medication is not working and might stop taking it. Likewise the side effects of a medication too can lower adherence if the patients start believing that they cannot manage or control them (25). Patient related factors/dimensions They can be sub-divided into two major factors i.e psychological/behavioral factors and physical factors. Psychological factors include fear of dependence or possible adverse effects, knowledge about disease, motivation, perceived risk to disease benefit of treatment, understanding reason of medication need, confidence in ability to follow treatment, feeling stigmatized by the disease, frustration with health care providers , psychosocial stress, expectations towards treatment and substance (alcohol) abuse. Physical factors include issues like swallowing problems, hearing, visual cognitive impairments and impaired dexterity or mobility. Few of these physical and psychological factors can be discussed in detail as under: Psychological factors that influence adherence The WHO proposes a foundation model for medication adherence which is based on three major factors i.e. motivation, information and behavioural change. Behavioural change has been found to be influenced effectively by making interventions based on this model (33). In accordance to WHO, adherence and non-adherence are different behaviours. In order to change behaviour, information is a prerequisite, but in itself it is insufficient to achieve this change. Hence at this stage behavioural and motivational skills are critical determinants. Motivation and information work largely through the behavioural skills to produce an impact on the behaviour. However, when the behavioural skills are uncomplicated or are familiar, the two aspects i.e motivation and information can produce a direct effect on the behaviour (33). Physical Factors that influence adherence The risk for non-adherence among older patients is increased due to physical and cognitive limitations. Visual Impairment Decreased ability to perform activities of daily living and an increased risk for depression is associated with vision impairment (34), (35). Furthermore there are many other medication safety issues associated with vision loss. A persons ability to read patient information leaflets, prescription labels, determine the colour and markings distinguishing a medication is affected by low vision and blindness. Therefore consequently people who cannot read prescription labels or distinguish among different medications have to rely on their memory or depend on someone else for help and hence may not be able to take their medications correctly. Hearing Impairment Hearing loss is directly related with age. The natural aging process not only affects the ability to detect sounds at lower levels but also the capability to understand speech at a normal conversation level (36). This condition does gets worse with age and is progressive. It is therefore important to not assume when a deaf person nods his head in acknowledgement that he/she has understood, as he/she might be relying on a family member or a companion to explain later (36). Impaired Mobility Older patients with poor mobility may have difficulty in self administration of medicines or in obtaining medicines from the pharmacy (37). Cognitive Impairment Poor medication adherence is associated with Impaired cognition (25). Elderly patients with memory problems and cognitive impairment may have difficulty in understanding when to take, how to take or how much to take their medications. Others factors also include as swallowing difficulties and impaired dexterity. PREDICTORS OF medication non-adherence Predictors of medication non-adherence can be a useful tool in the improvement of medicine adherence among older adults. Few of the non-adherence warning signs (38) include failure to fill in a new prescription, failure to fill in prescription for choric medication or failure to obtain refills as often as expected for medications taken on chronic basis. Below are some of the more common predictors of medicines non-adherence (38): Forgetfulness Lower cognitive function or cognitive impairment. Lack of insight into illness Lack of belief in benefit of treatment. Belief that medications are not important or are harmful. Complexity of medication regimen Tied of taking medications. Inconvenience of medication regimen. Side effects or fear of medication side effects. Missed Appointments. Substance Abuse Limited English language proficiency. Role of NICE (National Institute of Clinical Excellence): The issue of non-adherence to medicine is a very important issue in its own essence. After assessing and understanding the impact of non adherence on the NHS the NICE (National Institute of Clinical Excellence ) came into action and published a guidance in January 2009 (Medicines Adherence: Involving patients in decisions about prescribed medicines and supporting adherence) to tackle and address this core issue (of non adherence). Before moving further it would be essential here to describe the role of NICE in terms of its function. NICE was established as a special health authority on 1st April, 1999 is an independent organisation that provides national guidance on promotion of good health and prevention and treatment of ill health in England and Wales (39). The institutes main purpose is to offer NHS health care professional advice on how to provide patients with the maximum attainable standards of care and to decrease the variation in the quality of care . Furthermore, NICE is not part of the European Medicines Evaluation Agency (which assess the efficacy and safety of drugs), only licensed drugs on the basis of their added value relative to existing practice in the NHS are assessed by NICE (40). It has four programmes that produce guidance which are mentioned as under (39): Public health guidance Clinical Guidelines Interventional procedures Health technology appraisals ( for surgical interventions, pharmaceuticals, medical devices, etc) Most programmes take into account both the elements of cost-effectiveness (how well an intervention works relative to its cost) and effectiveness (how well an intervention works) NICE has an annual budget of 33 million pounds annually with over 250 full-time staff members working at offices based in London Manchester. The processes NICE uses in the development of its guidance are highly consultative, evidence based and transparent. It also involves all relevant stakeholders, including policy makers, health professional managers, specialist, academics, representatives of health care industries, general public and patients (39). The guidance that NICE produced to address the issue of medicine adherence was CG76 Medicines Adherence: Involving patients in decisions about prescribed medicines and supporting adherence. This guideline was produced taking into account the patients views as to what they perceive as barriers to effective medicines adherence and thus encourages healthcare professionals to have a discussion with patients about their prescribed treatment especially for long term conditions. In addition to this the guidelines also open a pathway for dialogue and negotiation between the patient and the health care professional regarding their medication. A quick summary of the guidelines is as mentioned below Summary of the NICE guidelines Bullet-points below quote from summarise recommendations from the CG76 guidelines (41). The key recommendations from NICE guidelines are as under Table 1: Shows the key recommendations from NICE CG76 guidelines. Involving Patients: Improve communication with patients Increase patient involvement in the decision making process about their medicines. Understand the patients perspective on their condition and possible treatments. Provide information about their condition and possible treatments. Supporting Adherence: Assess adherence levels Identify adherence issues Address adherence issues Review medication and its effective use Improve communication between health care professionals in the care pathway. From www.nice.org.uk/pdf/CG76fullguidelines.pdp Significance of the Study Community Pharmacists are the health care professionals which are most readily accessible to the general public and therefore continue to be the first line of Healthcare. They are experts on medicines and represent an important link in the chain of the health care professional team. Thus the main objective of this research project will be to provide a new insight as to what the community pharmacists reflect/perceive about these NICE CG76 guidelines. Hence their views and opinions will be assessed and analysed with regards to these NICE recommendations (as this would help in the implementation process). Any differences in the views of the pharmacists or any disagreement on the effectiveness of the NICE guidelines would mean that further investigation could be required to improve or update these recommendations. Hypothesis: H0 = There will be no statistically significant relationship between the years of experience of the pharmacists and the awareness of NICE CG76 guidelines. H1 = There will be a statistically significant relationship between the years of experience of the pharmacists and the awareness of NICE CG76 guidelines. H0 = Majority of the community pharmacists will not agree (on to a large extent) that CG76 recommendations have been effective in the improvement of medicines adherence among their patients. H1 = Majority of the community pharmacists will agree (on to a large extent) that CG76 recommendations have been effective in the improvement of medicines adherence among their patients.

Internet Users Turn Addicts :: essays research papers

If you're an Internet user, you know who you are. They are among all of us in society, although many may choose to not acknowledge that they too, frequently use the Internet. As I sit here and look across the street, I see a man in front of his own computer; the screen glowing against the window behind him. He does not use his personal computer for work, he is a farmer. He has become what is known as an "Internet Junky".The addiction begins innocently. At the start, you are not even aware of the possibilities that may form from your excessive computer use. You begin to take an avid interest in e-mailing with your friends and family. Once the novelty of keeping in touch with your colleagues wears off, and researching starts to bore you, you may possibly expand your computer usage to chatting. Yes, chatting. It is something that is becoming more acceptable in our lives, but it is still looked down upon by many skeptics. Chatting through the Internet involves choosing an appropriate nickname for yourself (IE: Fisherman), and then finding a room where you feel compelled to spend time in. Once you've entered the room, other fellow chatters may say, "Hello...a/s/l (age/sex/location) please." And so begins the addiction. Once you become involved in meeting people online, it is difficult to break such a habit. You may even make a daily habit of it. People have been found to carry out exactly the same behavior, not only across the nation, but across the globe. In any one room, you may come across people from five different countries of the world. Granted, not everyone who stays online for hours on end, are enveloped in chatting, but it is more often then not, the cause for Internet Addiction Disorder (IAD). (Goldberg, MD)The prevalence of Internet Addiction Disorder has been increasing in number, hence a support group, among many, The Internet Addiction Support Group (IASG) has been developed. IAD, a "maladaptive" pattern for Internet use, is leading to impairment and/or distress caused by three (or more) of the following, at any time in a period of one year: "A) A need for markedly increased amounts of time on Internet to achieve satisfaction, B) Markedly diminished effect with continued use of the same amount of time on Internet.", C) Reduction in Internet use which has been prolonged. (Goldberg,

The Federal Government and Medicinal Marijuana :: Argumentative Persuasive Topics

The American Medical Association's Council on Scientific Affairs should be commended for its report, "Marijuana: Its HealthHazards and Therapeutic Potential." Not only does the report outline evidence of marijuana's potential harms, but it distinguishes this concern from the legitimate issue of marijuana's important medical benefits. All too often the hysteria that attends public debate over marijuana's social abuse compromises a clear appreciation for this critical distinction. Since 1978, 32 states have abandoned the federal prohibition to recognize legislatively marijuana's important medical properties. Federal law, however, continues to define marijuana as a drug "with no accepted medical use," and federal agencies continue to prohibit physician-patient access to marijuana. This outdated federal prohibition is corrupting the intent of the state laws and depriving thousands of glaucoma and cancer patients of the medical care promised them by their state legislatures. This is an excerpt from a letter written in 1982 to the editor of the Journal of the American Medical Association. Its author was a citizen concerned about the complete lack of rationality exhibited time and time again in the Federal Government's attempts to justify its ban on the use of marijuana for medicinal purposes. It was no burnt-out ex-hippie who penned the letter. The concerned citizen was none other than the current Speaker of the House of Representatives, Newt Gingrich. He was co-sponsoring a bill intended to end the Federal prohibition on marijuana as medicine. He has since abandoned support for such initiatives and begun to deal in the sort of hypocrisy and misinformation that is typical of the federal government's policy toward medicinal marijuana. Gingrich's bill failed despite overwhelming support from both the public and the facts. Legislators, pandering to a vocal minority, struck it down. Fourteen years later, the silent majority spoke. In a move that must have had Nixon spinning in his gr ave, the silent majority, it turns out, supports this drug use. In the Fall of 1996, two states passed referendums legalizing marijuana. Both California's "Compassionate Use Act" and Arizona's "Drug Medicalization, Prevention and Control Act" passed wit h convincing margins despite well-funded opposition. Support for medical marijuana extends far beyond the traditionally libertarian Southwest. A recent survey of the American public by the American Civil Liberties Union showed that 85% of the American p ublic favors making marijuana legally available to the seriously ill. Unwilling to let the people have the final say, the Clinton Administration quickly moved to impose a de facto veto on these referendums.

‘’Reunion’’ by John Cheever

A. An essay analyzing the short story This essay is going to be an analysis and interpretation of the short story ‘’Reunion’’ by John Cheever. It will begin with a summary of the short story. Afterwards the plot, the conflict and the setting will be analyzed. Then I’ll move on to the characterization, the possible surprise ending and the theme and message. Finally I will draw parallels between the short story ‘’Reunion’’ and the essay ‘’Living With Strangers’’ by Siri Hustvedt. ‘’Reunion’’ is a short story about a boy called Charlie and his last interaction with his father.Charlie was travelling by train from his grandmother’s to a cottage his mother had rented. He would be in New York for about an hour and thirty minutes while waiting for the new train and therefore he wanted to meet his father. He hadn’t seen his father for three years and Charlie was exi ted to see the man he looked up to again. Because of the lack of time, they couldn’t go and see the father’s club, so they had to find a restaurant in the area. They went to four restaurants and they get more or less thrown out of all four. The father in this short story was either really drunk or/and very arrogant.In all occasions he talked down to waiters or behaved bad in one way or the other. In spite of his bad behavior they managed to get a ‘’Beefeater Gibson’’ at one place. It all ended with the father going up to a newsstand, again with a bad attitude, which was the final straw for Charlie who said ‘’Goodbye, daddy’’ and walked towards the station. That was the last time Charlie saw his father. This short story is one big flashback. The whole story is a flashback that concedes chronologically. It starts with a very short introduction in which Charlie just says ‘’The last time I saw my father was in Grand Central Station.’’, and from thereon he tells the story as a flashback.The conflict in this story is the high expectations from Charlie. Charlie admires his father very much, but when he meets him, he’s an arrogant and probably drunk jerk. Three years have gone, since they last saw each other and that is a long time. People can change a lot during three years and this is probably what also happened to the father or else Charlie just remembered him differently. The end shows that the conflict was too much to bear for Charlie as he says ‘’†¦that was the last time I saw my father. ’’.The reason why it was the last time they saw each other is probably because of the disappointment Charlie must have felt. Probably he doesn’t want to see his former ‘’hero’’ anymore, because he actually is a jerk. The setting takes places in New York City or more precisely around the Grand Central Station. Furt hermore it takes place in four restaurants and by a newsstand. It is most likely to take place in the last half of the 20th century. It was first published in 1962, but the scene could still take place today. The fact that Charlie’s parents are divorced also makes the story more modern, since that problem is very common nowadays.Back in that time where it was written it was unusual to be divorced, actually it was almost weird. Now let?s move on to the characterizations. Charlie is the main character and he’s probably a young boy. He lives with his mother, as his parents are divorced. His age is not mentioned, but in the text there is a line that makes him sound young: ‘’I knew that when I was grown I would be something like him’’. This makes the reader picture him as a child as he says ‘’when I was grown’’. But o the other hand later on he drinks alcohol with his father, which makes him seem to be almost a grownup.T o begin with, he looks very much up to his father, that changes and it all ends with him not wanting to be with his father and actually never wanting to see him again. During the story he doesn’t really say much. Of course he’s the narrator, but it is the father who leads the conversations. The father owns a club and has a secretary. He smells of ‘’†¦a rich compound of whiskey and after-shave lotion, shoe polish, woollens, and the rankness of a mature male. ’’. The fact that he smells partly of whiskey suggests that he had been drinking. His behavior could also verify that, as he behaved like an unstable person.He could also just be very, very arrogant as he almost feels that he is more than for example the waiters. He talks down to people and is generally very unpleasant. Neither his name or age is mentioned, but he might be in the mid-forties. The characters are directly told about by the narrator for example in this part of the text à ¢â‚¬ËœÃ¢â‚¬â„¢I smelled my father the way my mother sniffs a rose. It was a rich compound of whiskey and after-shave lotion, shoe polish, woollens, and the rankness of a mature male’’. He describes his father directly with a comment on his smell.It is called ‘’direct characterization’’ The father is a flat character – he remains the same throughout the story. He remains being a jerk, while Charlie is a round character as he develops throughout the story. At first he is excited to see his father again, but he ends up not wanting to ever see him again. We are dealing with a first person narrator, who in this story is the protagonist. The ending could be seen as a surprise ending since Charlie starts being excited to see his father but ends up saying ‘’Goodbye’’ and never wanting to see him again.On the other hand it isn’t really surprising, as the father throughout the story seems very unpleasant and may be even embarrassing to be around. It is a case of argument. The themes in this short story are love, father and son relationship, expectations, abuse of alcohol, disappointment (the grass isn’t always greener on the other side) and the hard word ‘’goodbye’’. The message here must be not to have too high expectations and that people change. Now it’s time to draw parallels between ‘’Reunion’’ and ‘’Living With Strangers’’. These two stories both take place in New York and they both touch the subject ‘’the meeting with strangers’’.In ‘’Living With Strangers’’ the narrator tells us about strange strangers, but in ‘’Reunion’’ Charlie’s father actually is the strange stranger. He marks the people he talks down to, with his boisterousness. They will maybe think back some time of the ‘’drunk/arrog ant jerk, who thought he owned the world’’. Generally these two stories show the two sides of a story. Another parallel could be the ‘’not making a big deal out of something’’. The waiters f. ex. don’t make a big deal out of the boisterousness, they just send Charlie’s father outside. That is the ‘’PRETEND IT ISN’T HAPPENING’’-rule.

Developing Multichannel Strategy

Developing Multi-Channel Strategy Dr Stan Maklan and Dr Hugh Wilson Cranfield Customer Management Forum in collaboration with IBM Business Consulting Services Contents A strategic approach to channels †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 1 Process overview†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 2 Step 1 Identify problems and opportunities†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 4 Cost reduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Improved customer experience †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 Improved access †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 5 Steps 2 and 3 Current and future state analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 6 Define the marketing context †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ . 6 Sales complexity matrix †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Product coverage map – current and future state †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 Building alternate channel chains †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 10 Step 4 Assess alternatives and choose†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 13 Channel curves – how customers value alternatives â₠¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 13 Cost analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 4 Prioritisation matrix †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 15 Step 5 Implementation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 18 Metrics†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 18 Testing new channel chains†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 19 Customer research cannot predict outcomes †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 9 Experimental design helps†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 19 Roll out†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 20 People must support new ways of working†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 20 Management, not technology, guides channel innovation †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 21 Summary comments †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 Step 1: Identify the nature of the problem or opportunity †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 23 Step 2: Conduct a current state analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 23 Step 3: Create a future state Product Coverage Map †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 23 Step 4: Evaluate potential new channel chains †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 23 Step 5: Pilot priority new channel chains and roll out successful pilots. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3 Appe ndix 1 Directional policy matrix †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 24 1 Cranfield Customer Management Forum in collaboration with IBM Business Consulting Services Figures Figure 1: Process Overview †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 2 Figure 2: Analysis and Generating Alternatives †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 6 Figure 3: Sales Complexity Factors and Weightings †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 7 Figure 4: Sales Complexity Score †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Figure 5: Current Coverage Map – IT Services Provider †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 9 Figure 6: Redrawn Coverage Map (Future)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 10 Figure 7: Current Field Sales Led Combinations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 11 Figure 8: Alternate Channel Chain †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 12 Figure 9: Channel Curve †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 13 Figure 10: Cost Comparison – Field Only versus Multi-Channel†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 14 Figure 11: Prioritisation Matrix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 6 Figure 12: Example of Prior itisation Matrix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 17 Figure 13: Directional Policy Matrix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 24 2 Developing multi-channel strategy A strategic approach to channels Distribution and channel-to-market strategy used to be an afterthought for most marketers. Once the difficult judgements about product range, price and promotion were made, channel strategy was determined by objective economic and logistic factors, such as minimum order size and shipping costs.The internet, coupled with a proliferation of complex global supply chains, has elevated channel choice to the pantheon of critical marketing issues. Customers make channel choices alongside their product-service choices and expect suppliers to offer sales, marketing and service across multiple channels – online, telephone and physical presence. Offering all channel choices to all customers across all products and services is too costly for most companies. For many companies, channel strategy is now every bit as critical to their success, as are brand and product range policies.Companies must now determine how to serve different customers through a combination of channels that meets customer needs at a competitive cost. The strategic marketer wants to move the discussion of channel strategy beyond distribution costs and efficient order sizes by determining how channel strategy creates product-service innovations, reduces cost and improves customer loyalty. A successful channel strategy delivers differentiated solutions to different customer segments whilst meeting the marketing, sales and service requirements particular to each productservice.Balancing the needs of customers and the characteristics of individual products and services, identifying trade-offs, identifiable costs to be borne by each chan nel and creating customer value through channel innovation are the marketing challenges companies face. 1 Developing multi-channel strategy Process overview Channel strategy typically develops in an ad-hoc manner. Analysing a company’s channel policies is sometimes akin to an archaeological expedition: one digs through time discovering layers of historical decisions, sales partnerships and customer deals.We believe that there is great benefit for most companies in treating channel strategy development as a process. Just as strategic marketing planning revolutionised the way marketing plans were developed, a systematic approach to channels will improve companies’ chances of accomplishing their strategic channel objectives. We have developed a simple process framework to help marketers meet these channel challenges (Figure 1). Figure 1: Process Overview Step 1: Problem Opportunity Step 2: Current State Analysis Step 3: Future State Analysis Step 4: Choose Step 5: Impleme nt Cost Experience AccessMarketing Context Channel Coverage Maps Channel Chain Development Channel Curve Prioritisation Matrix Customer experience People Metrics Step 1 – Identify problems and opportunities: The process begins with the organisation identifying problems and or opportunities. We categorise these into three types: cost reduction, improvement of customer experience and improving customer access. Often companies are faced with a need to do a combination of these three. Steps 2 & 3 – Current and future state analysis: These stages make extensive use of tools developed by the Cranfield Customer Management Forum.Step 2 begins with traditional market place analysis; identification of customer segments and priority product (service) offers. These offers and customer segments are grouped in a channel coverage map – current and future. The map identifies logical bundles or groups of solutions and customers which form the basis for development of separate ch annel chains, combinations of channels that serve the customer at each point in the purchase and service process. Step 4 – Choose: Evaluates each channel chain for its cost and ability to generate customer value.The latter is estimated through channel curves, a research based technique that evaluates customer preference for each channel at each point in the purchase and service process. Finally, a prioritisation matrix is developed that identifies the most important channel investments to be made. 2 Developing multi-channel strategy Step 5 – Implement: Implementation is a critical element of channel marketing. Channel innovation is challenging for organisations because of the people issues involved – customers and sales people.This section of the report illustrates the importance of test marketing channel innovation, aligning compensation plans to desired behaviour and ensuring the new channel system is able to â€Å"learn† from customer experience, and a dapt as it is rolled out. 3 Developing multi-channel strategy Step 1 Identify problems and opportunities There are a limited number of famous examples of reinventing industries through channel innovation: E-Bay and Amazon spring to mind immediately. Those companies started from the â€Å"white sheet of paper† or the third process stage of the above model.The firms participating in our collaborative research project are all established players in their markets with existing channel structures. They may be responding to low cost, internet pure play competitors. For established companies embarking on channel strategy development, it is worthwhile to engage senior management in a discussion about the objectives of channel policies. Our experience suggests that it is useful to frame the discussion around a limited number of strategic objectives: cost reduction, improved customer experience and better customer access to the company (e. g. overage). Cost reduction Cost reduction is self explanatory. Many established firms face the twin challenges of customers expecting their traditional personal (expensive) sales and service whilst willing to pay only at prices charged by new competitors operating, for example, only via the internet. BT’s Major Business unit, dedicated to serving its largest customers, faced just such a challenge. Traditional telephony revenues were flat or declining as costs fell throughout the industry. Growth was generated through increased sales of IT related solutions such as routers and servers.Margins are lower in IT versus telephony and the channel â€Å"norm† was different indirect channels and self service over the internet. BT could not profitably compete in the new areas whilst retaining its channel structure and cost. By allocating sales tasks sensibly between field sales, desk based sales and the internet, BT reduced costs as a percentage of revenue through channel strategy – whilst increasing market coverage . Improved customer experience Improved customer experience is linked with customer retention and increased recommendation.Companies normally measure key indicators of their customer processes (e. g. telephone answering, complete orders on time, resolution of customer problem with first phone call) to illustrate the efficiency of their customer management but they measure their effectiveness with customer satisfaction scores. There are very few executives today that fail to espouse their need for improved customer satisfaction – this is rapidly becoming the motherhood and apple pie of boardroom conversation. But improving customer experience normally entails costs – better people, better systems, more capacity.Of course, every company wants improved customer experience at lower cost per customer, but this is rarely possible. Often the strategy is to â€Å"encourage† 4 Developing multi-channel strategy self ordering and service online and convincing oneself that customers really prefer this experience. This is not always true, nor is measuring customer satisfaction always instructive. Increased customer satisfaction does not necessarily change customers’ buying behaviour and customers defect to competitors for different reasons than they remain loyal. The message is clear.Customer experience is an essential part of marketing and customer retention, particularly in the services sectors. But companies cannot invest on the basis of â€Å"more is better†. Companies need to understand how customers value each element of the package of benefits they receive and how they make trade offs between them; how much experience would a customer sacrifice for lower prices online? How will improved customer experience lead to business outcomes? Land’s End, a successful mail order clothing retailer, embraced the internet early on.It understood selling clothes to people not able to try them on in a shop, so the addition of the online chan nel to its traditional telephone-catalogue one, was not too difficult. It uses the internet to extend and enhance its customer experience by providing complementary services. For example, one can design and dress up a virtual personal model to sample clothing virtually. Nonetheless, Land’s End displays prominently its toll free number so that online customers can immediately access helpful call centre staff.It also offers real time chat and personal assistance. Land’s End’s investment in the online channel was not justified by reduced call centre costs – it is there to provide a better customer experience. Improved access Finally, improving customers’ access to your products and services is a basic tenet of good business and a traditional channel strategy objective. With new technology, companies can offer unprecedented access to sales, service and customer data ubiquitously. Companies can now access customer segments hitherto unreachable or unprof itable to serve.BT’s Major Business Unit’s channel innovations not only reduced its costs, but allowed BT to increase account penetration. For example, a BT Account Director might negotiate the right to sell leased lines (typically low value items) to each branch of a national financial services company. Whilst the deal is negotiated with the customer’s head office, it is sold branch by branch with a desk-based telephone channel. Previously, the Account Director would have had to organise field sales people to call on each branch – uneconomical. Improved access increased sales.Many estate agents offer online services to improve customer access to their databases of properties and, more importantly, improve access to updates in property details. Whereas, previously, potential buyers would need to call agents regularly and receive posted updates of properties, changes in prices or competing bids, now they can be notified online or via SMS messages. 5 Develo ping multi-channel strategy Steps 2 and 3 Current and future state analysis Strategic alternatives can be developed through analysis of current channel combinations and generating imaginative new ones.See Figure 2. The tools used for analysing the current state and determining the future state are identical so these steps are discussed together. Figure 2: Analysis and Generating Alternatives Define the Market Context Define the market Determine customer segments Determine product-service priorities Generate Channel Strategy Alternatives Sales complexity Matrix -product complexity and customer value 2. Product coverage map -current state analysis 4. Generate alternative channel chains 3.Future coverage map – Create productcustomer combinations Define the marketing context Whilst the focus of this paper is channel strategy, the framework illustrates that channel strategy should be considered in the context of the company’s product (service) strategy. The salient aspects are: †¢ Agreeing the market definition as consumers or end customers would define it. Mapping the flow of goods and services through to the end customer to determine who buys what from whom. Segmenting the market into distinct, needs based customer segments.Setting appropriate investment strategies for each productservice market on the basis of your competitiveness in the market and the market’s inherent attractiveness. Normally, this is done with the Directional Policy Matrix, a strategic marketing planning tool described in Appendix 1. †¢ †¢ The market context illustrates the major market segments and the strength of existing distribution networks from suppliers through intermediaries (hereafter the channel chain). It also determines the priority productsservices for channel investment. It provides the necessary background 6Developing multi-channel strategy data for analysing current channel policy and generating alternatives for the future. Sales complexity matrix The first step in the analysis of the current state is to determine the sales complexity for each of the priority offers (combinations of product and or service) determined above. The more complex a product (service) is to sale and service, the more complex, personal and interactive the effort required by the company. Conversely, buying low cost, low risk, easy to configure products can often be done directly by customers online.Most often a sale, even for complex solutions, is made through a combination of channels, but one channel is designated as the lead or prime channel. Sales complexity is one of two prime determinants of the dominant channel: the other is how important the customer. Sales complexity can be estimated as a weighted average of scores for each of the key components of sales complexity. Let us take the case of an IT service provider. It provides three types of services: computer installation, configuration of sales and marketing software applications and ma rketing consulting.Under each of these three service headings there are three to five more specific service offers. For example, the software configuration services comprise the installation of complex front office solutions, databases, data mining tools, sales force automation systems and simple contact management systems. The company determines factors that comprise sales complexity and then determines a weighting for each factor to arrive at the following list and weightings (Figure 3): Figure 3: Sales Complexity Factors and Weightings Complexity FactorOrder size – the bigger the order, the more complex Limited customer knowledge of the product or service – less customer knowledge creates more complexity Length of the sales cycle – long sales cycles increase complexity Difficulty configuring – installing – the more difficult to configure, the more complex the sale Training – the greater the requirement to train customers in the use of the application/equipment, the more complex After sales service – the more service required, the more complex the sale Weighting .15 . 25 . 10 . 20 . 20 . 10Against each of the services offered, the company scores each of the complexity factors from one to ten in order to create a weighted average score for each line of service (Figure 4). 7 Developing multi-channel strategy Figure 4: Sales Complexity Score Order size Limited Customer knowledge Sales cycle Configuration Training Service Sales Complexity Score Weighting Application Configuration Front Office Database Data Mining Tools Sales Force Automation Contact Management Hardware Deployment Desktop Mobile phone PDA Laptop Consulting Service DB management Sales Network Customer strategy 0. 5 10 7 3 5 2 8 6 4 7 5 5 3 0. 25 7 6 9 5 2 2 5 7 3 5 7 10 0. 1 7 6 3 5 2 2 5 7 2 7 7 7 0. 2 7 9 5 7 2 3 6 7 3 8 8 6 0. 2 7 8 9 6 2 3 4 5 3 6 6 NA 0. 1 4 3 5 4 2 3 4 4 4 7 7 NA 7. 15 6. 85 6. 3 5. 5 2 3. 4 5. 05 5. 85 3. 6 6. 2 6. 7 7. 3 Pro duct coverage map – current and future state The product coverage map identifies how we wish to reach our customers as a function of the complexity of the product-services that we sell to them and the attractiveness of the customer. It determines the lead channel for combinations of customer segments and product-services from the perspective of the company’s strategy.The customer perspective is developed in the next phase (channel chains) and overlaid onto the coverage map to provide a balance between company and customer agendas. The coverage map is constructed sequentially from the following: †¢ Sales complexity scores on agreed dimensions to generate a continuum from simple to highly complex. The products and services considered in this phase are normally those identified as important from the Directional Policy Matrix. Major customer segments ideally defined in the first stage (Marketing Context). Developing ontiguous blocks of customer-complexity service spac e. †¢ †¢ The company in this example identifies its priority customer segments from the market context and they are listed below in reverse order: †¢ †¢ †¢ Owner managed businesses Mid sized retail financial services providers Large professional services companies Figure 5 illustrates two axes of the coverage map: (1) customer segments (prioritised) and (2) product-services ranked in order of complexity. 8 Developing multi-channel strategy The middle of the matrix describes how the company sells each productservice to each customer.These are, in order of INCREASING cost: customer self-service on the net (I), desk-based sales conducted by telephone (T), distribution partners (D)1, and field-based account managers (FS). Figure 5: Current Coverage Map – IT Services Provider High Complexity product-service Sales Force Automation Appl. Low Complexity product-service Consumer Strategy Owner Managed Businesses Medium Retail Financial Services Large Professio nal Services Front Office Application Database Application Sales Data Mining Network Mgt Tools Database Mgt PDA Deployment Laptop Deployment Desktop Deployment Contact Mgt Application FS FS T I I FS D FSD D T FS D FS I T I D FS T T I FS FS D D T T FS FS FS FS FS I = self service over the internet, T = Deskbased account managers D = Third party distribution partners FS = Field sales – account management There are obvious anomalies in the coverage map illustrated in Figure 5. Expensive field account managers sell some very simple products-services: perhaps there is a culture that an account manager handles 100% of the customer’s requirements. Distributors sell the company’s complex database applications and sales networks to very large companies for historical reasons; does the company lack sales expertise in these areas?However, the distributors may dis-intermediate the company and take control of key accounts, so is this a wise policy? To owner managed businesse s, some of these complex services are sold via the internet which has a low success probability. Even smaller, owner managed businesses need some help to understand these services. Figure 6 illustrates how the company assigned a â€Å"lead† channel for each product-service and customer segment combination to reflect the selling demands of the product-service and the size of the sales opportunity.These new contiguous blocks of customer-solution become the unit of analysis for the next stage of the process: building combinations of channels to serve each block (channel chains). Such distribution partners are often known in the IT industry as VARs or Value Added Resellers. They are often small to medium sized IT services firms that provide specialist industry or application expertise. 1 9 Developing multi-channel strategy Figure 6: Redrawn Coverage Map (Future) High Complexity product-service Low Complexity product-service Sales Force PDA Automation Laptop Desktop Contact Mgt De ployment Appl.Deployment Deployment Application Consumer Strategy Owner Managed Businesses Medium Retail Financial Services Large Professional Services Front Office Database Sales Data Mining Application Application Network Mgt Tools Database Mgt D D D D T T T T I I I FS FS FS D D D T T T T I FS FS FS FS FS FS T T T T I I = self service over the internet, T = Deskbased account managers D = Third party distribution partners FS = Field sales – account management The redrawn coverage map focuses vital field sales resources on selling large, complex solutions to the biggest, priority customer segment.Distributors sell large, complex solutions to smaller, lower priority segments. Desk-based sales teams handle the middle ground: modest complexity across customer segments. Self service over the internet is reserved for the simple products-services and lower priority customers who are considered to buy largely on price and for whom a lower cost sales model is needed in order to be co mpetitive. This exercise puts some structure on the channel strategy but it is not realistic in the modern world for one channel to manage an opportunity through the sales and service cycle.Whilst the company now has a lead channel for each opportunity, it needs to build secondary channels to reflect customer segment preferences and manage scarce resources optimally. Building alternate channel chains The channel chain maps out how we can reach the contiguous groups identified in the redrawn product coverage map. If the product coverage map allows the company to find a rationale for how it wishes to serve customers, the channel chain analysis encourages the company to think about creating customer value through channel innovation.Different customers have different needs for information, counselling and support at different stages of the sales, service and customer development cycle. For reasons of simplicity and accountability, many companies insist that one person (or team) take com plete responsibility for all communications with a customer at all stages of the cycle. This may be a luxury few firms can afford today. Additionally, many customers wish to supplement their traditional customer managers with immediate answers online whilst their account manager is otherwise occupied.Failure to provide a mix of channels can frustrate clients and drain valuable business development from account managers. Channel chains allow companies to think creatively about how to engage with a customer in the manner most 10 Developing multi-channel strategy valued by the customer whilst allocating customer management resources optimally. Figure 6 identifies four contiguous blocks of channel lead and productservice solution: field sales, distributor, desk-based and internet.Each of these blocks should be analysed further to create business rules for the management of opportunities through the sales, service and customer development cycle. Figure 7 illustrates the current channel c hain for the contiguous block of selling complex applications to large customers. There are a number of shortcomings with the current channel chain from the perspective of the company. The limited field sales resource is stretched by taking full responsibility at all stages of the customer engagement cycle.Whilst customers appreciate this simple and personal service, sales people do not have sufficient time to focus on developing big opportunities. During the early stages of a customer engagement, the channels operate in separate silos largely and respond to enquiries that come to them instead of operating to a set of business rules that determine where the opportunity is best handled. Figure 7: Current Field Sales Led Combinations Marketing activities Deskbased (telephone) Internet Distributor Field sales Operations Stage Lead generation Inquiry Qualify lead Proposal Follow up Close Implementation Assess new customer needs Customer developmentFigure 8 illustrates the result of the creative process that generated a framework for team based selling: integrating a number of channels that aligns the appropriate channel to the different tasks. Valuable field resources are focused upon the tasks for which they are uniquely and best suited: generating compelling sales proposals and closing the sale. Integrating the internet and desk-based channels into the process under the leadership of the field sales force, qualifies out poor leads quickly and therefore allows the company to pursue more sales leads.The teambased selling approach provides better response to customer queries 11 Developing multi-channel strategy throughout the selling engagement and reduces the cost of sale to the company. So the alternate channel chain increases the number of sales opportunities, reduces the cost of sale and increases the sales success rate. Figure 8: Alternate Channel Chain Marketing activities Internet Deskbased (telephone) Distributor Field sales Operations Stage Lead generation Inquiry Qualify lead Proposal Follow up Close Implementation Assess new customer needs Customer developmentSimilar channel chain reengineering is done for all four coverage map blocks identified in Figure 6 to generate strategies for improving sales effectiveness and increasing sales coverage. It remains to assess the impact of alternate channel chains on the target customer and develop a full costing for each to ensure that channel strategy maximises customer value as well as company efficiency. 12 Developing multi-channel strategy Step 4 Assess alternatives and choose The assessment of alternate channel chains is based upon two criteria: cost and customer value. Channel curves – how customers value alternativesCustomers have their own criteria for assessing how well a company manages the supplier-customer relationship. Channel curves assess how well different channel chains deliver against customers’ key criteria. Customer research generates a list of key criteria a nd the weighting of each criterion in the customers’ total assessment of a supplier. Judgement and research suggest how each chain delivers against each criterion on a one to ten scale. The result is a weighted average utility score for alternate chains. Figure 9 illustrates this for our case example: how large professional services firms assess IT suppliers’ channel chains.The new, mixed channel chain generates a slightly higher weighted average customer utility score but the difference is likely within the margin of error of the method. The extensive personal contact of the traditional channel chain generates small advantages for the most important customer criteria but this is offset by a mixed chain’s ability to respond very quickly to simple requests and greater access to technical resources 24/7 because field sales people do not have the deep technical know-how that is available via the desk and online channels. Figure 9: Channel Curve Weights 10 3 . 18 . 17 . 15 . 10 . 08 . 02 Traditional chain (Weighted Ave . 66) Alternate chain (Weighted Ave . 69) 5 1 le op pe of es ie y e er liit q qu na e so pll er Pe s sim tto se a al on o os sp o op re pr d id e ap at R ur cc ac e,, ett pl m se om tis C C er xp le s ca n ni m em c ch bl T Te ro pr off p h hi rs ce ic ne r rv wn s se O ed iis s om es st iin us us C bu y m m n nd U ds an s st er The channel curve analysis reassures the company that the mixed channel chain is no less preferred than its traditional approach and 13 Developing multi-channel strategy enerates a list of key issues that the mixed chain must address – intimate knowledge of the customer business for example. These can be translated into key metrics against which to assess the new chain. Cost analysis Cost reduction is always of interest to companies designing their channel policy and in this illustration, necessary for the company to remain competitive. Other companies might find that overall customer utility fall s with some new channel chains and they would expect a significant cost reduction in order to compensate for potential lost business.Conversely, some firms may design more expensive channel chains that are highly valued by customers and they need to know how much incremental cost will be generated. Costing channel chains is a matter of detailed estimation of the degree to which different customer groups will use different channels and each channel’s effectiveness at converting inquiries into sales. The exercise generates metrics for efficiency (cost) and effectiveness (conversion or attainment of other objectives) that will enable managers to assess channel policy continually.In this case, the IT services provider compared the cost of traditional field sales force against a team-based multi-channel approach as illustrated by Figure 7 and Figure 8. In this illustration, revenue increases 50% whilst costs decrease so that the cost per order falls by almost 3%. This results in s ales costs, as a percentage of total revenue falling from 23% to 15. 6%. Figure 10: Cost Comparison – Field Only versus Multi-Channel Field Only Sales process Inquiries Qualify Proposal Follow up Close Assess new opportunities Customer development Revenue Total cost Cost per order Cost ? 000 2000 3500 4000 2000 200 Cost per process ? 0000 50000 100000 200000 20000 Multi-Channel Cost ? 000 1200 3000 4000 3000 240 Cost per process ? 10000 30500 80000 200000 10600 Customers 100 100 70 40 10 10 Customers 120 120 85 50 15 15 10 50M 200 11900 20000 15 75M 240 11680 10600 1190 1160 14 Developing multi-channel strategy The sales processes above are taken directly from Figure 7 and Figure 8. Lead generation and implementation costs are not affected by the channel chain in this case example so they are excluded from the cost analysis. For purposes of presentation, we assume that the current channel chain generates sales of ? 0M through 100 orders. The new channel chain will allow more inquiries to be processed but there is no difference in the percentage of inquiries that pass through to proposal and are followed up. The closing success rate is slightly higher in the new channel chain because field sales people are focused on critical junctures of the sales process. The big difference is in the costs of qualifying each lead, generating a proposal and following it up. Prioritisation matrix The generation of alternate channel chains is both a rational and creative exercise.In the examples we present, some channel chain innovations are obvious – this is for presentation purposes. Some of the most exciting marketing developments over the past decade have resulted from very radical approaches to channels. The use of a comprehensive set of tools and frameworks should not diminish the creativity of managers in thinking about novel ways to meet customer needs. For example, online betting exchanges, such as Betfair (www. betfair. com), reduce customers’ cost , improve their access to betting occasions and for the first time, allow them to back and lay bets.The incumbent fixed odds, high street betting shops are responding but the online new entrants generated this innovation. Thinking creatively about channel chains for each contiguous block of customer-solutions will create a number of channel chain combinations that customers will value and may be cost effective. Few organisations, if any, can implement many channel chains simultaneously due to the complexity involved: implementation is discussed in the next section of this paper. A simple means of setting priorities amongst channel combinations is suggested – the prioritisation matrix illustrated in Figure 11.This matrix is defined by two axes: attractiveness of the channel chain to the organisation and attractiveness to the customer. It results in four solutions and attendant generic strategies for each. 15 Developing multi-channel strategy Figure 11: Prioritisation Matrix At tractiveness to organisation High Attractive to organisation †¢ †¢ †¢ †¢ †¢ †¢ Revenue potential Increased coverage Margin improvement Reduced complexity Fit to strategy Ease of implementation Selective trials with consumers Priority investments Attractive to customer †¢ †¢ †¢ †¢ †¢ †¢ Convenience Cost Speed of response Availability Product information Ease of useLow priority investments Partner Break into stages Gain experience Watch and prepare Low Low High Attractiveness to customer Much of the analysis required to complete the prioritisation matrix has already been done. Understanding the attractiveness to the customer and key dimensions of attractiveness are generated by the channel curve analysis. The attractiveness to the organisation is largely done; the prioritisation matrix adds some new dimensions, such as ease with which the company can implement the solution, fit to overall strategy and ability to reduce sales complexity in the organisation.The four generic strategies corresponding to the boxes of the matrix are: †¢ Invest: The channel chain is attractive to both customers and the organisation so it is a win:win. †¢ Selective trials: The channel chain is attractive to the organisation but not to the customer. Here judgement is needed. Is the potential gain, for example in cost, worth the loss of customer satisfaction? Will customers learn to accept the new channel chain? Will they defect if unhappy? Will competitors follow our lead so that this channel chain becomes the industry norm? Can some negatives with the new chain be overcome?Find â€Å"clever† solutions: These options are highly valued by customers but not by the organisation. Perhaps they are too costly, too difficult to implement or operate or do not fit with the overall strategy. Can you partner with another firm to reduce the cost and complexity? Can the new chain break the solution into smaller, more managea ble pieces or be implemented in stages? Perhaps you can trial the new chain and learn how to implement it at lower cost. At least, one needs to keep a watching brief on these channel combinations lest competitors implement them first and take valuable customers.Low priorities: These are valued neither by the organisation, nor its customers, so are generally not done. †¢ †¢ 16 Developing multi-channel strategy The organisation must agree a scale on which to grade high-low on the two axes and normally this is done on a scale between one and ten. The matrix itself is populated with channel chain investment options illustrated by circles and the size of each circle can be scaled to reflect the cost or potential revenue benefit. This is illustrated for our IT services company in Figure 12 below.Each channel chain investment is described by its chief characteristic; for example one says â€Å"field sales automation† and that is the channel chain that essentially enhances the productivity of the current field sales chain. The diameter of the circles represents the investment being made by the company in channel innovations. Figure 12: Example of Prioritisation Matrix Attractiveness to organisation †¢ †¢ †¢ †¢ †¢ †¢ Revenue potential Increased coverage Margin improvement Reduced complexity Fit to strategy Ease of implementation High Attractive to organisation Distributor extranet Field sales automation Desk based sales Customer portalAttractive to customer †¢ †¢ †¢ †¢ †¢ †¢ Convenience Cost Speed of response Availability Product information Ease of use Low Field sales Low High Attractiveness to customer In this example, we can see that the largest channel investments are in chains and solutions that are least attractive to customers. The channel investment most valued by customers (more field sales people) is unattractive to the company and not receiving a lot of investment. Perhaps this is t he most attractive to customers because they are not used to team based, multi channel selling from the company.Perhaps they are not convinced that the company can implement it effectively and are worried that service levels will fall. The two projects that are in the top right quadrant receive the smallest investment. The prioritisation matrix suggests that the company should increase investment in the portal and extranet. Field sales automation is not what customers value so that might be implemented selectively. Desk based sales might be critical to making team selling work but it seems to dominate the investment portfolio. Perhaps it could be introduced more slowly to allow funding to be redirected to projects of higher customer priority.Field sales investment is valued by customers but is not attractive to the company; can investment be more selective until other channels demonstrate their value to customers? 17 Developing multi-channel strategy Step 5 Implementation Developing new channel chains is a change programme and most managers have first hand experience of change. This white paper does not wish to summarise the vast literature and experience of change management in its final section. We will highlight some unique aspects of channel chain change programmes that merit attention.This section discusses: †¢ †¢ †¢ Design of metrics Piloting channel chains with customers Rolling out new channel chains and ongoing development thereof Metrics The prime metrics for assessing and managing the development of channel chains are illustrated by Figure 10, the cost and conversion analysis. Ultimately, the organisation wishes to sell more at lower cost per sale. Alternate chains are developed and their efficiency and effectiveness are measured. Achieving the targeted ROI for such investments is usually contingent upon a few key conversion and cost estimates.However the role of channels in marketing strategy goes beyond sales and most companies adop t a balanced scorecard type approach comprising: †¢ Financial measures such as costs per sale, sales costs as a percentage of revenue, number of sales, average order size, conversion from inquiry to sale and repeat purchase rates. Reputation measures the impact of alternate channel strategies on customers’ perception of the organisation – modernity, professionalism, value for money, value for time, knows-mybusiness, easy to do business with and other relevant measures.Relationship measures include the number of senior level contacts with a client per annum, the breadth of those contacts (in the case of the IT company it might measure marketing director contacts), frequency of customer interaction, customer satisfaction, customer willingness to recommend our company. Knowledge tries to measure how much we know about each customer’s behaviour, attitude and purchase process. People looks at the extent to which our own customer facing people are satisfied, enga ged, productive, supportive of the business’ overall goals, feeling confident about their customer management competencies. †¢ †¢ †¢ 18 Developing multi-channel strategy For a comprehensive review of metrics see the Customer Management Forum white paper ‘Measuring multi-channel effectiveness using the balanced scorecard’. Testing new channel chains Channel chain innovation represents two challenges: 1. Channel innovations are complex change programmes that require sales people to embrace new ways of working and are often accompanied by complex new technology. Unlike backoffice automation, channel chain mistakes impact customers and there are few â€Å"second chances† if customer service levels erode as new ways of working bed down in the organisation.The business case is normally â€Å"theoretical† and assumptive. We have described the stages of developing new channel chains and highlighted the need to seek customer research at key in tervals. Where the brief is cost reduction, savings can be forecasted. However, where the brief is to enhance customer experience and extend the offer, it is difficult to be sure to what extent improved customer experience leads to changes in customer behaviour. It is intuitively appealing to assume that a better experience improves customer satisfaction and that higher levels of satisfaction generate more purchases.Intuitive yes, but often wrong. Regrettably, proving empirically the relationship between customer satisfaction and behaviour is fraught and companies must test this in their own specific context. 2. Customer research cannot predict outcomes Whilst the process outlines some of the customer research activities that can be undertaken during the development of new channel chains, research experts have long realised that customers cannot predict how they will react to situations that they have yet to experience.So extensive surveys, observation of customer behaviour in resea rch laboratories and even examples from other industries do not predict behaviour. This is not to say that research is a wasted effort, only to suggest that research does not substitute for testing channel innovation on a small scale before proceeding to reorganise one’s entire channel strategy. Experimental design helps Given the difficulties identified above, companies need to prove channel innovation in the marketplace with real customers. However this process must be managed carefully in order not to damage vital customer relationships.We recommend that companies create an experiment where a small, but sufficient number of customers are exposed to the new channel chain. Key metrics, discussed above, are determined in advance of the experiment and they can be assessed in-market. 19 Developing multi-channel strategy On the basis of observed changes in customer behaviour, Sales ability to work in the new channel chains and the ability of the company’s processes to sup port the channel innovation, a company can invest with much greater confidence. Roll outSome of the case studies produced by the Cranfield Customer Management Forum illustrate how a successful pilot improves the chances for a successful roll out. With hard evidence of the benefit, people are more willing to support the changes required to scale the pilot into a full channel programme. People must support new ways of working The channel innovations we have seen at the Cranfield Customer Management Forum typically involve a company moving from a very dominant single channel (e. g. field sales) to a broad, team-based multichannel strategy.Case histories explored by the Forum illustrate a number of issues: †¢ Field sales forces feel threatened over their ability to control the customer experience (who is saying what to MY customers? ) and a potential reduction in status. There is often the unstated worry that senior management is evaluating critically individuals’ operationa l performance and ready to micro manage customers from head office. Finally, and perhaps most importantly, there are worries over compensation. Introducing team based selling with a view to reducing sales osts is often interpreted as a threat to sales peoples’ current compensation structure. How will sales incentives be shared between the channels? Managers of new channels, such as desk-based sales and the internet, do not know how to integrate with field sales operations. They are not sure how to measure success; what is their contribution to an overall sales target perhaps under the control of a field sales director? Their teams tend to be remote from the customer and field sales so personal relationships and trust are hard to develop.Companies do not know how to compensate each channel. During the introduction phase, management wishes to reassure the field that its compensation will not be reduced so that incentives for new channels represent added cost. This is not sustai nable. Team based selling often requires new technology and that entails risks of the technology not working, or people not operating the new technology properly. Customer facing technology is particularly risky as valuable customers experience your teething problems. †¢ †¢ †¢ 20 Developing multi-channel strategyThe Cranfield Customer Management Forum has documented successful channel innovation in such circumstances. The elements common in such cases are: †¢ The implementation of the channel innovation is not rushed. There is adequate time to consult with sales people, train people in ways of working, build teams between the old and new people and just get used to the idea of change. It is not uncommon for channel change programmes to last for three to four years. Of course, throughout that period, innovations are being introduced but at a pace that the organisation can manage.The customer relationship manager remains in control of the overall engagement with hi s or her customer. The relationship manager is fully aware of the activities of other channels with his or her account and can override the policies and recommendations of the â€Å"system†, retaining full control over the customer experience. Software is tried and tested thoroughly by live sales teams before large scale rollout. Support for changes in working practices are severely undermined when promised technology that makes â€Å"it all work† disappoints its users.People feel let down by the company and distrust the motives behind the changes. There is a frank and open discussion about compensation. Companies cannot be expected to fund double or triple compensation for the sake of harmony. However, the compensation system must encourage team selling. In the BT example of selling leased lines to bank branch offices, desk based sales people receive bonuses for each sale made. At the same time, the national account (field sales) manager for that bank is credited with the sales made by desk based sales against his or her overall target with the bank for the year.The relationship manager is therefore rewarded for the successful desk based sales campaign. In this way, there is alignment between the channels’ compensation plans. †¢ †¢ †¢ Management, not technology, guides channel innovation In all the cases of successful channel innovation reviewed by the Cranfield Customer Management Forum, we found that CRM technology played an essential role in enabling new ways of working to be managed at a large scale consistently. However, successful companies did not begin by picking an application and then building processes that embed the application in their organisation.They started with a clear view of what they were trying to accomplish and used approaches akin to channel mapping and channel chain development to achieve it. 21 Developing multi-channel strategy Once they understood the channel chains that they were trying to implem ent, they built a comprehensive set of business rules around each chain. This allowed the company to have rules for such events as major customers making enquiries online, telephone based sales campaigns to major customers and avoiding conflicts with distributors’ sales campaigns.These rules took time to develop and often were built with the help of outside consultants. The rules are managed by very senior sales managers as they represent the underlying logic of the channel strategy. For successful companies, the allocation of sales complexity scores to products and services is a top management issue as is the process by which various channels will work together. In order for the rules to be dynamically updated, there are important governance structures established for team based selling.Each company finds its own way to integrate the policies, investment, people development and compensation of its channels. However these policies are not developed in isolation of the overall customer relationship strategies. Resource owners are not free to do as they please; senior managers must live the team-based values that they espouse. 22 Developing multi-channel strategy Summary comments Traditionally, â€Å"channel† was a poor relation to other elements of the marketing mix.New technology and business models have changed this 180 degrees: scholarship and managerial practice are catching up to this new reality. We develop a systematic five step plan for companies to develop their channel strategy. Step 1: Identify the nature of the problem or opportunity Is the motivation for channel innovation cost, improving customer experience, increasing customer access or a mix of the above? Step 2: Conduct a current state analysis First look at the market context: define the market, determine and establish priorities between customer segments and inally determine and set priorities between product-service offers. Then determine the complexity of each priority product service offer and rank the offers in order of complexity. Using the Product Coverage Map, identify the lead channel for each priority customer segment along that ranked order of complexity. Identify anomalies. Step 3: Create a future state Product Coverage Map To address these anomalies, identify major groupings of offer-customer with lead channels. Draw channel chains for each grouping.Enter into a creative exercise to develop better channel chains for each grouping. Step 4: Evaluate potential new channel chains Evaluate in consideration of customer preference (Channel Curve analysis) and cost. Set priorities between alternatives. Step 5: Pilot priority new channel chains and roll out successful pilots. Consider that channel innovation is a major change process. Research and adoption of â€Å"best practice† alone will not provide the leadership necessary for successful channel innovation. Customers cannot evaluate that which they have not experienced.Best practice fails to account for the context-specific nature of each company’s customers, ways of working, established Sales practices and information technology expertise. In implementation it is important to ensure that customer-facing people support new ways of working, implementation is not rushed to meet artificial schedules, customer managers retain control of the process and act as guardians of the customer experience and there is effective feedback between those leading the change and those affected by it.Despite the difficulties in channel innovation, for many companies it is a must-do activity. Since best practice is very emergent, there are opportunities for companies to generate real competitive advantage through channel strategies. 23 Developing multi-channel strategy Appendix 1 Directional policy matrix The Directional Policy Matrix (DPM) is a strategic marketing planning tool that allows managers to make investment decisions across a portfolio of opportunities. Figure 13: Direction al Policy Matrix MARKET SEGMENT