August 22, 2008

Multichannel Forensics A to Z: Oscillation Mode

Very few businesses have products, brands or channels that operate in what Multichannel Forensics (book, study) defines as "Oscillation Mode".

The automobile industry operates in this mode. You buy a car, then you are strongly encouraged to service your car with the dealership. If that relationship goes well, you'll buy your next car from the same dealership.

You "oscillate" between buying the car and servicing the car.

Business models operating in oscillation mode experience more risk than the average business. If the dealership fails to service your car appropriately, you won't buy your next car there. If you don't like the increases in your monthly cell phone, you won't buy your next cell phone from the carrier. If you don't like the credit relationship with your furniture store, you won't buy furniture there again.

The Oscillation Mode business most execute well in diverse areas like sales, support, and credit. The traditional "Equilibrium Mode" business can overcome a bad experience in one product, brand or channel with a good experience in another.

What are examples of business models you work with that are in Oscillation Mode?

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