Optimize your distribution channels: Reward

It's easy to assume that channel optimization is about cost containment, but doing it to the detriment of customer acquisition and service is worse than not doing it at all. Channel optimization is not necessarily about reducing costs or cutting customer service: it is about making sure you're investing in the things that matter most to customers, and not wasting investment in things which really have no impact.

To effect real change, you'll have to take a hard look at your channel strategy:

• Take a hard view of the efficiency of your various channels
• Understand how your customers use them
• Question your traditional operating norms
• Segment your customer base by the needs and benefits they are seeking
• Match your 'cost-to-serve' to the economic value of your customer segments
• Invest in the things that matter to your customers
• Don't invest (or cut investments) in those things that customers don't value
• Track attitudes and preferences — they may change over time.