THE VALUE OF MULTICHANNEL DISTRIBUTION-SYSTEMS IN THE FINANCIAL SERVICES SECTOR

An examination of the use of multiple distribution channels in the mar keting of financial products in the UK is conducted. A cluster analysi s of 153 new financial products shows that 85 per cent of the products belong in one of three multi-channel distribution channels: a 'Balanc ed' strategy draws on all the distribution routes; 'Network' strategie s utilise a network of outlets; 'Arm's Length' strategies employ those channels such as direct mail, direct response advertising or intermed iaries that do not involve direct contact between company staff and cu stomers. Finally, an association between the use of multiple channels, especially if they are used intensively, and success is demonstrated. Success is estimated both on a single overall scale bur also on a num ber of sub-dimensions.