When we refer to channels in the Business Model Canvas, we are speaking about marketing channels or distribution channels.
What exactly are these channels? Essentially, a channel is the way products and services get to the consumer. With respect to the Business Model Canvas, it is a specific set of five practices or activities your business will use to transfer the ownership of goods from the point of production to the point of consumption.
When it comes to examining the channels your business will use, we must consider how it will handle each of five phases.
- How will you raise the awareness about the company and its products and services? For example, will you advertise on TV, go to trade shows, or engage in social media?
- How will you help customers evaluate the organization’s complete value proposition? For example, does it involve educating the customers or third parties about your offerings?
- How will you allow customers to purchase specific products and services? For example, will you sell directly to the consumer through a website or storefront or will it be indirect and involve distributors or affiliates?
- How will you deliver the value proposition to customers? For example, will it be by providing a product or service that fits their specified needs better or will it be through better or more convenient hours of operations?
- How will you provide post-purchase customer support? For example, will you offer a guarantee or warranty or will you provide technical support?
Collectively, when it comes to identifying the channels you will use, you also need to understand if you can integrate these channels with others you have already established, assess which ones will work best, and identify which ones are more cost efficient for you to implement.
Do you have a clear picture of the channels you use to reach each of your customer segments?
Next post in the series: Customer Relationships
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