Maximize Customer Retention and Revenue with a Connected Channel Strategy

Customers today expect service across multiple channels, from online and mobile to call center and retail outlet. Charting the right course depends on understanding individual market and customer requirements.

It’s also important to think through how you can maintain customer and distributor loyalty even as you move some of these transactions to other channels. At the same time, different markets have different levels of digital and online channel maturity—in some, more than half of all transactions happen online; in others, the number is less than 1%. In addition, emerging markets are typically more reliant on very finely spread distributors of SIM cards and recharge packages, versus company storefronts or online channels.

Consider the following statistics:

67% of Western European consumers research a product on a smartphone before buying in store.

65% of Western European consumers look at a product in store before buying online.

60% of Western European consumers search for and reserve a product online so they can collect in store.

43% of Western European consumers use a mobile phone to check prices while shopping in store.

A connected channel strategy takes this consumer behavior into account and ensures that all channels are optimized. Customers choose, or are directed to, the most effective channel for their needs. They also experience consistent service across channels. This can be difficult because there are many different consumer pathways across channels, and often IT processes haven’t been set up to manage that. But it’s worth the effort, with results such as improved customer retention, increased sales, and reduced costs.

BCG’s connected channel solution helps operators exceed customer expectations, reward employees, and deliver on promises to the business. It begins by answering questions in three critical areas:

  1. Understanding the Current Situation. How does a typical interaction feel to the customer? What does the customer want? Are your current channels working as expected? Are you prepared to do what it takes to deliver?
  2. Designing the New Model. Can you strike a balance between dominant channels? Do you know how to integrate and transition between channels? What are the new roles each channel must play? Is there a business case for making the necessary changes? Are there creative ways to leverage new channels? How is digital technology impacting the way you connect with customers? Can you adjust your operating model to become more efficient? Can you incentivize customers to use a specific channel?
  3. Setting the Plan into Motion. Can the organization adjust to the new connected channel vision? How can you get buy-in from every level of the business? Will you measure channel effectiveness over time? How will each channel function? What is the long-term plan for achieving the vision?

Having a clear connected channel vision can bring value to three areas: customers, employees, and the business.

Customer Promise

Employee Promise

Business Promise