Business Models 101: Distribution Channels

In this part we will discuss the Distribution Channel, meaning how you are going to distribute and sell your products.

I have to repeat it on every page but starting something on your own, creating value for you, your family and the world is a totally recommendable thing to do. You want to create your company. This is GREAT. The world has been made by people like you. Entrepreneurs. Self-Made Men, Creators, Builders people that believed an obstacle is just another great challenge to overcome, to solve and put behind them as an achievement. 

The Channels

How do you reach to your customers. How do you make them aware you are existing, how do we convince them, how do we help them to purchase our goods, how do we deliver the goods and how do we support them after the sales have been done.

In the case of our cupcake factory, there could be many channels to sell the cupcakes. Direct sales through our shop (just pass the door), or through bakeries we would be providing with cupcakes every day, online ordering through our website. We could also deliver to restaurants for their deserts. Finally we can reach our customers with online adservices like Google Adwords.

channels business model

Here are the questions you have to ask about the Channels:

  • How do we reach our customers?

  • How do we reach our customers segments?

  • How do they want to be reached?

  • Did we qualify the quality of our channels?

  • What are the best channels?

 

As mentioned already many times, customer is king and you are its servant. Your goal in life is to make him happy and come back again and again (but not to complain of course). So you have to be aware of the various stages where you can be put in contact with your future and actual customers. Every stage of the selling act of your company and purchasing act of your customer are part of a phase. Here are the channel phases:

  1. awareness: how do we raise awareness about our company and products and services?

  2. evaluation: how do we help customers evaluate our organization's value proposition?

  3. purchase: how do we allow our customer to purchase specific products and services?

  4. how do we deliver a value proposition to our customers?

  5. after sales: how do we provide post purchase customer support?

Previous: Customers

Next: the Key Activities

 

Download the template from here.

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