Organizations have many channel options to consider in architecting the right ecosystem. With a wide array of options across owned and third-party, digital and physical channels, numerous factors must be considered, including evolving customer journey paths and needs, legacy channel infrastructure and relationships, channel synergies and conflicts, organizational capability, urgency and speed of key trends, channel-specific optimization strategies, and many others.
All this complexity can leave executives wondering which digital channels to prioritize and how to manage them effectively — maximizing upside, mitigating downside risks, and make the transition smooth. As digital channels continue to multiply, intersect and bring new innovations to the market, their alignment has never been more important.
How We Help
A successful digital channel strategy is about using the right channels to market in the optimal way. We help you identify the channels — including emerging digital ones — that will maximize your profitable reach. For example, we work with you to:
- Define benefits and drawbacks for your brand across owned and third-party channels, to recommend where to play
- Identify the highest ROI allocation of investment in the selected channels
- Create a system of metrics to measure and improve each channel’s individual and holistic performance for your company
- Develop a channel performance improvement plan to drive results in each key channel
- Develop a strategy for owned channels, third-party channels and Amazon to balance the risks and rewards of delivering your brand on and off your owned channels
- Coordinate channels for an optimized channel ecosystem and a seamless customer experience
- Map out processes for managing channels and resolving channel conflict
- Adopt a channel strategy that can adapt to changes in the marketplace
- A plan to address the right digital channels for your organization
- Greater efficiency across all channels
- The right investment balance that prioritizes the most effective digital sales and marketing channels for your organization
- Improved access to your customers under the right conditions and times
Examples of Our Work
- A global entertainment content company exclusively utilized third-party channels, such as TV networks and cable/satellite firms, to reach its target consumers, but it wanted to build a more encompassing consumer experience. We were engaged to identify the product, business model and strategy and we identified the potential for a direct-to-consumer subscription digital video service. We helped the company make a transformational leap into a different channel. This cannibalized existing revenue streams to create a digital-first business and a high-margin revenue stream more than double that of the legacy business. We helped the client transform its business, from analytics through programming to take advantage of this new business and customer intimacy.
- A commercial and consumer hard case brand experienced declining revenues and market shares, largely driven by the client’s underperformance in ecommerce channels and a lack of a defined channel management strategy. We were engaged to help the client implement an ecommerce growth strategy and revise its overall channel strategy. Extensive research and analyses highlighted that the client face multiple problems in its online channel, such as high price variability, low search result placement, and unclear product differentiation. L.E.K. developed a comprehensive online strategy, including defined online seller rules and a strategy to maximize share with Amazon, allowing the client to improve sales, margins and overall performance in both online and traditional channels.
- A global footwear brand and retailer asked us to conduct a deep assessment of the company’s overarching channel strategies, including owned retail, owned ecommerce, wholesale, distributor partners and Amazon, and to develop a holistic channel strategy that would address at lack of cohesion that negatively impacted sales performance. Using a combination of analytical techniques and collaboration with internal stakeholders, we built a holistic channel strategy tied to clear merchandising and marketing plans to promote omnichannel optimization and minimize cannibalization. The comprehensive project resulted in a 30% increase in the global ecommerce business.
- Faced with growing online competition, a leading boating and marine manufacturer required a new strategy to improve its dealers’ ecommerce sales, while at the same time enhancing the digital customer experience. We created a point-by-point playbook that incorporated elements of a successful electronic-retailing model, and also worked with the client to sharpen its brand positioning on behalf of dealers and their clientele. By realigning its brand portfolio, management is now poised to grow valuation by some 25-30% above prior long-range planning. Read more
- A category-leading food manufacturer asked us to assist in refreshing its strategic plan, a key component of which was thinking about evolving the brand’s product, go-to-market and operational platforms to grow where people shop today and will shop tomorrow (particularly in ecommerce). We defined a roadmap to achieve the plan, including the necessary activities, timing, milestones, evaluation metrics and gaps in current resourcing.
Building Products and Materials Online Sales Trends
The rise of social media and online sales has dramatically changed the building products and materials industry. Rob Rourke, Managing Director of L.E.K.’s Building Products and Materials Consulting Practice, discusses the latest trends in online sales and how companies have been dealing with these shifts in consumer preferences.