Lesson 3: Business Model Canvas

What You’ll Learn: When it comes to transitioning an idea into a business, the Business Model Canvas is one of the fastest and best ways to think through your business before you spend a dime. It offers a time-saving shortcut to the traditional business plan process and will quickly give you insights into the viability of new your idea. 

Business Model Canvas (continued)

Distribution Channels

Your Distribution Channels establish how you will deliver your value proposition to each customer segment, from communications and support to supply chain logistics – warehousing, packaging and transportation.

Channels serve several functions:

  • Expanding the knowledge of customers about products and services offered by a company.
  • Assisting customers in evaluating the value proposition and delivering on that proposition.
  • Facilitating the ordering and delivery of products and services by customers.
  • Supporting customers after the purchase.

There are five distinct phases in your distribution channel:

  • Awareness: The customer learns about your value proposition through advertising, marketing and sales.
  • Evaluation: The customer evaluates your product and forms an opinion.
  • Purchase: The actual acquisition of your product or service.
  • Delivery: When and how the product is delivered.
  • After-Sales: Supporting the purchase with technical and customer support.

Each customer segment may require a different distribution channel or mix of channels. Some may be totally within your control; others may depend on other partners to execute. The key is to figure out the right balance of channel types, so each contributes to and improves the customer experience and satisfaction while increasing revenue.

Revenue Streams

Your Distribution Channels establish how you will deliver your value proposition to each customer segment, from communications and support to supply chain logistics – warehousing, packaging and transportation.

Channels serve several functions:

  • Expanding the knowledge of customers about products and services offered by a company.
  • Assisting customers in evaluating the value proposition and delivering on that proposition.
  • Facilitating the ordering and delivery of products and services by customers.
  • Supporting customers after the purchase.

There are five distinct phases in your distribution channel:

  • Awareness: The customer learns about your value proposition through advertising, marketing and sales.
  • Evaluation: The customer evaluates your product and forms an opinion.
  • Purchase: The actual acquisition of your product or service.
  • Delivery: When and how the product is delivered.
  • After-Sales: Supporting the purchase with technical and customer support.

Each customer segment may require a different distribution channel or mix of channels. Some may be totally within your control; others may depend on other partners to execute. The key is to figure out the right balance of channel types, so each contributes to and improves the customer experience and satisfaction while increasing revenue.

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