McKinsey & Company - Marketing & Sales Practice

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''A more scientific approach to managing the customer lifecycle can create significant value.'' From ''Opportunity of a Lifetime''

Marketing & Sales Practice - Building Substantial Growth

McKinsey's Marketing & Sales Practice draws on global resources to build substantial, profitable growth through superior marketing. We bring highly experienced marketing professionals and state-of-the-art knowledge, both closely connected to McKinsey's industry and client expertise.

We focus on the most relevant marketing issues – issues that reflect real-world concerns of business leaders.
We ground our work in a thorough understanding of customers and their needs.
Our scale of engagements keeps us at the forefront of marketplace developments.
Knowledge development plus experience enables us to provide road-tested strategies in a rapidly evolving marketing environment.

MAKE WAY FOR THE U-BOOMERS
With big appetites and small wallets, some 24 million Americans are still a huge market.

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This Quarter essay - A new model for marketing
One of the biggest concerns of CMOs today is the explosion of customer segments, products, media vehicles, and distribution channels. This explosion has made marketing more complex, more costly, and less effective. The combination of these developments will force companies to adopt a new model for marketing with changes in many of their marketing paradigms.

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Making brand portfolios work
Rigorous economic analysis and strong insights into consumers can help marketers clarify the competitive positioning of their brands, avoid offending the core consumers of repositioned or discontinued ones, minimize cannibalization, and seize growth opportunities.

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Steering customers to the right channels
Companies can reduce their sales and service costs, increase their revenue per customer, and penetrate underserved segments by guiding customers to the most appropriate channels. To do so, companies should gain a clear understanding of their channel economics and develop plans to manage relations with their channel partners.

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ORGANIZING FOR CRM
According to recent surveys, more than half of all companies investing in CRM programs consider them to be a disappointment. Our experience has shown that to overcome organizational roadblocks (the core of the problem), companies should establish a structure that mimics a market in which constituencies take on the role of "sender" (delivering the solution) and "receiver" (implementing it).

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OPPORTUNITY OF A LIFETIME
We believe that companies in subscription-based businesses should concentrate on managing the holistic customer lifecycle rather than focusing solely on subscriber growth. This emerging discipline - customer lifecycle management (CLM) - provides companies with a framework for understanding the true value of customer satisfaction as it affects buying behavior, migration, and loyalty.

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