5 – Channels
A look at the business model from the product manager's point of view
CANVAS 13 - Great guide on the business model, from the product manager's point of view
1 – Customer Problem
2 – Customer Segments
3 – Value Propositions
Value Proposition Formulation Map
4 – Customer Relationships
You are here ➔ 5 – Channels
6 – Revenue Streams
7 – Key Activities
8 – Key Resources
9 – Key Partners
10 – Cost Structure
11 – Eco-Social Costs
12 – Eco-Social Benefits
13 – KPI (Key Performance Indicators)
The next element is channels. They include the ways in which people learn about us and our products, and how we deliver our products to them.
These are supporting elements, meaning key activities. These are the actions we take to ensure the value proposition, establish customer relationships, maintain channels, and possibly generate revenue. For example, if our channel is Facebook advertising, a key activity would be creating advertising materials and experimenting with Facebook. If we have a customer support service, key activities would be the actions of this service. If it is a mobile app or website, key activities include development, design, and marketing.
What communication channels do our customers prefer and how do we reach them currently?
We need to determine which communication channels are most effective and cost-efficient for reaching our customers. It is also important to understand how our channels interact with each other and how they fit into the daily lives of our customers.
Our communication channels go through several stages:
- Awareness: At this stage, we make our products or services known to potential customers.
- Evaluation: Customers compare our offers with competitors and assess their attractiveness.
- Purchase: Customers decide to buy our products or services.
- Delivery: We ensure the delivery of our product or service to the customer.
- Post-purchase service: We provide support and service to customers after purchase.
These are all important aspects of our products and services, as well as our value proposition.
Direct Channels
Direct channels denote the points through which your business directly communicates with customer segments and which are fully under your control. Here are some typical examples of direct channels that may be present in your business model:
- Your business's own retail stores
- Your business's website dedicated to customer service
- Your own sales team that directly interacts with customers
- Your customer service staff dealing with corporate clients (B2B)
- Your social media platforms, such as a website, blog, Instagram, Facebook, and LinkedIn, through which you directly communicate with customers
Indirect Channels
On the other hand, indirect channels are those owned and managed by intermediaries, partners, or third parties that help you reach your business's customers. Below are some examples of indirect channels that may be included in your business model:
- Third-party retail stores that would sell your product
- Third-party websites that offer your product or service
- Third-party sales teams that help sell your product or service
- Wholesale systems that distribute your product or service
- Media outlets that help promote your product or service
- Recommendations or "word of mouth" that help spread information about your product or service