A01 chaf6542 06 se fm indd

2

‘Bricks and clicks’

Mix of on- and offline

transactions and

customer service

3

‘Clicks’

All transactions and

customer service online

M05_CHAF6542_06_SE_C05.indd   220

7/23/14   11:16 AM

---

221

Chapter 5  Digital business strategy

 Right‑  channelling  strategy 

example

Application and tactics to achieve 

channel adoption

Typical sector and company 

examples

1  Sell to and serve SMEs through 

online channels.

Using the Internet for sales and service 

through an extranet to  lower‑  sales‑ 

 volume SME customers who cannot 

be serviced direct through account 

managers.

Customer channel adoption encouraged 

by convenience and lack of other options.

B2B. Hardware: Dell, software 

services such as MessageLabs 

Antivirus;   anti‑  spam  and  email 

management services. Commercial 

banks such as HSBC.

2   Account‑  managed  relationships 

with larger companies offline, 

either direct or through partner 

companies.

The converse of strategy 1. Using 

face‑to‑face and phone meetings with 

large,   high‑  sales‑  volume  clients  through 

account managers. Customer channel 

adoption encouraged by personal service 

and capability to negotiate service levels 

and buying options.

B2B. Account managers at Dell for 

larger clients. Bank ‘relationship 

managers’ who discuss financial 

management  with  ‘ higher‑  wealth’ 

individuals.

3  Encourage consumers to buy 

through online channels.

Customers buying online have lower 

cost of sale. However, there is a risk 

of customers evaluating competitor 

offerings and lower conversion rates 

during the sales process. Customer 

channel adoption encouraged by reduced 

‘Internet prices’ compared to offline 

channels and explaining proposition of 

more choice, more convenience.

Insurance companies such as 

DirectLine.com and morethan.com. 

Retailers such as Tesco and Comet.

4  Provide offline conversion to sale 

options during sales process.

Offer a phone  call‑  back or live chat 

facility from within web sales process 

since strategy 3 may involve lower 

conversion rates than an in‑store or  call‑ 

 centre customer interaction. Customer 

channel adoption encouraged by 

providing clear contact numbers on‑site 

(but not on home page, when  part‑  way 

through customer journey).

Insurance companies such as 

DirectLine.com and morethan.com.

5  Migrate customers to web 

 self‑  service.

Customers are encouraged to use the web 

to manage their accounts which results 

in a lower cost‑to‑serve for the company. 

Email notification and e‑billing.

Customer channel adoption encouraged 

by marketing campaigns which 

encourage e‑channel adoption, possibly 

including savings on service.

B2C. Service providers such as 

mobile phone companies, utility 

companies, banks and government 

(tax returns).

6  Selective service levels for 

different customer types.

With integrated CRM systems 

(Chapter 9), companies can determine, 

in real time, the value of customers 

and then assess where they are placed 

in queue or which call centre they are 

directed to.

Most companies would not publicly 

admit to this, but the practice is 

common amongst financial services 

companies, mobile phone network 

providers and some pureplays.

Table 5.9

Examples  of  ‘ right‑  channelling’  applications

M05_CHAF6542_06_SE_C05.indd   221

7/23/14   11:16 AM

---

222

Part 2  Strategy and applications

return on investment for strategies that fail. The model of Ansoff (1957) is still useful as a 

means for marketing managers to discuss market and product development using electronic 

technologies. (This decision is considered from a digital marketing perspective in Chapter 8.) 

The market and product development matrix (Figure 5.20) can help identify strategies to 

grow sales volume through varying what is sold (the product dimension on the x-axis) and 

who it is sold to (the market dimension on the y-axis). Specific objectives need to be set for 

sales generated via these strategies, so this decision relates closely to that of objective setting.