Optimize your distribution channels: Risk

The risk factors involved in channel optimization read like a case study for the aphorism 'damned if you do, damned if you don't'.

If you rationalize, you risk under-delivering, and having your competitors swoop in and steal away your customer base with better service delivery.

If you don't rationalize, your costs will continue to spiral out of control: out of all proportion to the value of the customers being served. That's why our focus is on optimization, not rationalization.

Executing well on an optimization strategy is easier said than done. You will need to uncover the true drivers of customer service and satisfaction. This calls for rigor, accurate testing and measurement, and clear analysis. But above all it requires the use of an appropriate methodology to determine the key issues that affect customer service.