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McKinsey Quarterly is the business journal of McKinsey & Company.

human factor in service design article, how companies can make customer service more efficient and effective, Sales & Distribution

January 2012 

The human factor in service design

Focus on the human side of customer service to make it psychologically savvy, economically sound, and easier to scale.

Recent Thinking

The Archive

2010

2009

  • March 2009 

    Cutting sales costs, not revenues

    Courageous companies can use the downturn to make their sales operations not only less expensive but also more effective.

2008

2007

2006

2005

  • November 2005 

    Transforming sales and service

    Incumbents can serve the whole market—without getting stuck in the middle.

    Includes: Audio
  • August 2005 

    Mitigating channel conflict

    Some partners are more important than others.

  • August 2005 

    Retailing: What's working online

    Successful companies should examine all available channels and then tailor an approach according to their capabilities.

  • June 2005 

    Better B2B selling

    Although collaborative relationships with customers can be complex and time consuming, when they are done well the rewards can be substantial.

2004

  • November 2004 

    Steering customers to the right channels

    Migrating customers to a new channel can be a pain—for them, the company, and its channel partners. But the rewards can make the effort worthwhile.

  • August 2004 

    Bringing science to sales

    By integrating systems in order to generate transaction-level costs and revenues, companies can determine where to focus their sales efforts.

2003

  • August 2003 

    Rechanneling sales

    A decade of change has upset the industrial producers’ traditional approach to selling. The time has come for many of them to change their sales channels.

  • August 2003 

    Solving the solutions problem

    Companies can earn higher margins or increased revenues by selling integrated offerings—if they don’t merely bundle their products.

2002

  • November 2002 

    Keeping your sales force after the merger

    Merging companies should look to their revenues, not just their costs.

  • August 2002 

    The unexpected return of B2B

    Suppliers put off by open business-to-business exchanges might find that the newly emerging private ones offer a better deal—as well as four ways to play.

  • May 2002 

    The e-tailer's secret weapon

    General retailers use their expertise in a few core categories to attract customers, but over the Web they must offer more. Enter the on-line category manager.

  • January 2002 

    The case for on-line communities

    Users of the community features of World Wide Web sites really are more valuable than nonusers.

2001

2000

  • December 2000 

    The Asian difference in B2B

    On-line B2B marketplaces have a bright future in Asia—if they are adapted to fit the special needs of the Asian business environment.

  • November 2000 

    WWW: The race to scale

    Many analysts think that profit and market liquidity—or their absence—determine the value of Internet companies. Yet the number of visitors their sites attract explains their market-cap variations better than either metric.

  • August 2000 

    Banking on the device

    Both mobile phones and interactive TV could help on-line financial services reach market segments that elude other devices for accessing the World Wide Web.

  • August 2000 

    Beyond day trading

    Round one of the on-line brokerage game was about adjusting to a new medium in a raging bull market of technology stocks and rising price-to-earnings ratios. Round two is about holding the client’s hand.

  • August 2000 

    Click and save

    Incumbents have grown rich from customers who don’t manage their assets rationally. The World Wide Web will take away most of that income, but now that incumbents are finally facing the music, they are starting to compete effectively.

  • August 2000 

    M-commerce: An operator’s manual

    Mobile-telephone operators could compete on all levels of the mobile-commerce value chain—but they should think twice before they do.

  • August 2000 

    The real business of B2B

    It may be hard to create a successful business-to-business market-place, but ignoring the trend just isn’t an option.

  • August 2000 

    The virtual reality of mortgages

    New Internet-based players face more challenges than some of them—or the stock market—once expected. Even so, the Net’s advantages can be brought to bear on the mortgage industry.

  • August 2000 

    Will the banks control on-line banking?

    The indifferent performance of virtual banks in converting the public to on-line banking would seem to hand the advantage to their traditional competitors. Yet most incumbents have been slow to meet the on-line needs of their customers.

  • June 2000 

    Electronic commerce: Three emerging strategies

    In order to create value for themselves—and keep it from shifting to competitors—businesses must choose their strategies for participating in electronic-commerce marketplaces.

  • June 2000 

    The new infomediaries

    Developing and marketing consumer profiles in the information age is a growth industry built on trust.

  • June 2000 

    From e-commerce to Euro-commerce

    Europe is now playing catch-up to the United States in electronic business, but the European game may well have a different outcome.

  • June 2000 

    M-commerce: Advantage, Europe

    Surprise! Europe will almost certainly take the lead in mobile commerce.

  • May 2000 

    The duel for the doorstep

    On-line vendors must offer customers complete satisfaction or lose them to off-line rivals

  • February 2000 

    From retailing to e-tailing

    Internet pure plays may have won the first round of Internet retailing, but there is every reason to believe that store-based retailers will give them a run for their money.

1999

  • February 1999 

    Private lives

    Are consumers selling their privacy too cheaply? Not for long. An excerpt from Net Worth predicts the rise of the “infomediary.”

  • February 1999 

    The mouse that roared

    On-line retail sales might be modest, but don’t underestimate the broader impact of the Internet.

1998

  • November 1998 

    Breadth of a salesman

    Salesforces will need to create value, not just communicate it. But even in the same industry, different customers see value very differently. Matching selling strategy to customer type.

  • November 1998 

    Electronic bill payment and presentment

    Just about everyone who is (or is about to be) on-line has a bank, a broker, a credit card, or a mortgage. For a long time, the business has been a matter of numbers flickering from one file to another.

1997

  • August 1997 

    Channel conflict: When is it dangerous?

    Separating complaints from economic reality. When there is a conflict, there are effective options. Don’t overreact, but don’t get paralyzed either.

  • August 1997 

    The coming battle for customer information

    As consumers take control of information about themselves, companies will have to pay for it.

  • May 1997 

    Retail banking: Caught in a web?

    New web-based competitors are positioning themselves as trusted, objective intermediaries. Most bank executives are following a “fortress” strategy—defending themselves while they wait for clarity in the on-line world.

  • May 1997 

    Value exchange: The secret of building customer relationships on line

    The Internet offers consumer companies a powerful and lucrative marketing medium, but many companies do not even attempt to gather information about individuals. This piece reveals the value-exchange techniques that best-practice companies use to build customer relationships on the World Wide Web.

  • February 1997 

    The balkanization of the Internet

    If there ever was a communal model, say good-bye to it. What’s ahead is market-based pricing and a smaller number of interconnected but differentiated networks. It all means big changes for service, technology, and content providers.

1996

  • August 1996 

    Who will benefit from virtual information?

    How online marketing could shift the balance of power: four scenarios. A key issue: information liquidity. Future competitors will include those who might capture information you want.

  • May 1996 

    Electronic commerce (finally) comes of age

    Independent developments have accelerated the pace of on-line transactions

  • May 1996 

    Placing your bets on electronic networks

    The wrong debate: the Internet versus on-line services. The distinctive value of networks is the ability to form communities. The basics of quality, cost, and convenience will still drive success.

  • May 1996 

    Who will capture value in on-line financial services?

    Should banks and software companies collaborate, or fight it out? Both players have options to redefine relationships between themselves and customers. Trend toward non-exclusive arrangements and standards.

  • February 1996 

    Are you tough enough to manage your channels?

    Too often emotion triumphs over reason. Some improvements, like fixing incentives, can be made quickly. But emerging channels are hard to spot.

  • February 1996 

    Exploiting the virtual value chain

    Competing in two worlds: the marketplace and the marketspace. New ways to create digital assets. Beware: many of the old business axioms no longer apply.

1995

  • August 1995 

    Early perspectives on electronic commerce

    Understanding what electronic commerce means, how key technologies will evolve, and what roles players might adopt will be critical to the strategies of companies in a wide range of businesses in the future.

  • August 1995 

    Opportunities for content providers in online services

    The distribution of power between players in the new multimedia environment will be governed by proprietary, hard to replicate content and control of proprietary distribution. McKinsey has identified six themes to guide content providers in the emerging interactive environment.

  • August 1995 

    Real profits from virtual communities

    Critical mass is now in place. Who will control communities with the right mix of content, fantasy, chatter, and commerce? From product manager to executive producer. You will need to be brave in these new worlds.

  • August 1995 

    The great European multimedia gamble

    Battlegrounds are unlike those in the United States. The right perspective may be short term and tightfisted. Above all, protect your core business.

  • May 1995 

    Banking on multimedia

    Costs are just 60 percent those of traditional banks. Layering electronic channels on top of branches is the wrong answer. Cashing in on three waves of technology.

  • May 1995 

    Wiring Europe

    Are Americans using Europe as a dress rehearsal? Vulnerable incumbents. Strategies based on distribution are shaky. The emerging power of gateways.

  • February 1995 

    Salesforce Management: Packaged goods salesforces - beyond efficiency

    Up to 30 percent return on spending. The movement toward account profitability.

1994

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