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CHANNELS - CANVAS

Accelerate your business with these expert tips on "Channels". Analyse and discover this TIP!

The canvas channels are all those means we use to communicate or to interact with our partners. target (+) with the aim of raising awareness of the value proposition, distribute it in the market and make the sale. Once we have identified and validated our target audience, identified and validated the problem we are solving with our appropriate value proposition, we must discover and validate the appropriate channels for our business model.

We have to find the shortest and cheapest way for our value proposition to reach the desired customer segment(s). A channel is any medium that connects your project with your customers.communicating and delivering your value proposition to that customer segment. We can define the channel as any medium through which we communicate with customers and deliver the value proposition.

They are also useful to establish an after-sales relationship with the customers.This is something that brings added value to the business and contributes to their loyalty to our products or services. In order for the business model is successful the most appropriate channels must be selectedThe most popular ones, those preferred by customers and with which the best results are obtained in each of the phases of the purchasing process. 

Types of CANVAS channels

We can classify them according to the function they fulfil in the business model, the way they interact with the customer and their relationship with the company. This is a useful for analysing and assessing the characteristics of the available media in order to select the most suitable ones.

According to their function:

  • COMMUNICATION

We use these channels to communicate with the marketplace, mainly by to make the value proposition known. They are closely related to the intention of informing customers and generating interest in our products or services. They are also useful for providing customer service and after-sales services.

  • DISTRIBUTION

These are the ones we use for to bring our products to the marketa sales outlet, a distributor, or a combination of these.

  • SALES

They are means to bring our value proposition closer to the customer in order to promote sales, especially in the short term. For example: providing free samples, offering package prices, organising trade fairs and other events.

According to their membership of the company and interaction with the customer:

  • DIRECTOS

These are proprietary channels, created and used to obtain benefits by reducing costs by establish direct interaction with customers. For example: a website, a commercial department or a sales department.

  • INDIRECT

These are external means that make it easier for customers to access our products or services, although they generate an increase in their final cost. For example: shops and distributors.

How to select CANVAS channels?

We can choose the right CHANNEL of communication to invest in advertising by taking into account what it costs me to obtain a customer in each of them. By comparing the CAC of each communication CHANNEL we can decide with more criteria which one we are more interested in to accelerate our company. If we want to compare the effectiveness of the channels, we only enter the advertising costs incurred in each of them (it is not necessary to enter all the costs, much less distribute the staff costs).

In each channel we invest a certain amount of money in advertising, we measure the customers gained, we calculate the CAC and by comparison we can decide in which channel we are interested in investing more CAC per channel:

It is a very useful metric to compare the effectiveness of each of the channels through which we can attract customers. In this sense, To calculate with some foresight the cost of customer acquisition that we can afford in a campaign, we will have to take into account what the average purchase value of our customers is. In other words, how much they tend to spend on average.

This is because if, for example, we are a decoration shop and our customers spend an average of €30, it doesn't make sense for our customer acquisition cost to be €20. On the other hand, it would make sense to invest that much if we sell luxury cruises on the Nile and the average purchase value is €3,500.

Therefore, the CAC, or customer acquisition cost, is a effective metric to assess how much we can spend on customer acquisition. Google refers to CPA as "the cost you are willing to pay to make a conversion", but not to acquire a new customer. CAC, on the other hand, is about acquiring new customers.

For the selection of the channels CANVAS studies the different stages your customer goes through during the buying processThe time from the moment you detect your problem or need until you decide to solve it:

  • INFORMATION PHASE

One year ago search for possible solutions for your problem or need. Identifies preferred information search media. For example: SEO positioning on websites, advertisements in newspapers and TV, an industry magazine, a marquee in front of .....

  • EVALUATION PHASE

It analyses in detail the information it has collected, considers the various alternatives according to the benefits they offer and the budget available. The channel should be useful for helping the client to evaluate our proposalexplain the features that add value. The use of publications on websites and in catalogues is useful.

  • PURCHASE PHASE PHASE

Takes the decision to purchase the product or service and proceeds to locate the sales sites. It is very important to facilitate this activity for the client, to provide sufficient information to enable the client to know where and how to buyas well as, offer various means or channels of payment.

  • DELIVERY PHASE

Receive the product or service. Think about the best way to delivering the value proposition using effective and efficient channelsThe company's products and services are designed to meet the delivery times and other requirements of each customer segment.

  • AFTER-SALES PHASE

Obtains personalised attention in reference to the good or service after having received it, either on request or on the company's own initiative. The following are required channels to implement strategies to retain customers..

MISTAKES TO AVOID:

There are entrepreneurs who think that with money they could run many advertising campaigns on ALL channels to reach all customers. The key to success for a good entrepreneur is to discover the channel that provides the most profitable and loyal customers with the least investment, and to achieve this by investing very few resources.

APPLY THIS TIP TO YOUR PROJECT

TASK

Now that you know about CANVAS channels, answer the following questions:

  1. Which of these channels do customers prefer? If all my customers read or consult one channel, it will be very easy to reach them, it will cost us less investment!!!!
  2. Which ones deliver the best results at each stage? More customers and more LTV
  3. Which ones are more profitable? Invest 100 euros in each and compare results, calculate the CAC of each channel.
  4. Which channels are the most suitable for your company?
  5. Which ones have you already tested ("validated") and what positive results have you achieved in attracting customers?
  6. Which one provides you with the most customers at the lowest CAC cost?
  7. How can we choose the CHANNEL through which we can grow the most?

QUIZ

THINK ABOUT YOU

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  1. Business Model Canvas - Mentor Day WikiTips

    [Sales channel: [...] 3.]

  2. HOW TO CHOOSE THE COUNTRY? - Mentor Day WikiTips

    [...] Distribution channels in the country of destination that bring your product closer to consumers more efficiently. [...]

  3. Vicky

    Tanzania

  4. Antonio Jesús

    On some occasions and for some products we must choose the channel according to the segment we want to reach, there are consumer segments that do not use or use very little certain channels, if it is an interesting segment in terms of consumption of our products we must investigate what channels they use and be present in them, in all functions, ie, communication, distribution and sales.

  5. Jose Manuel cartaya

    Es un lineamiento preciso para poder lograr el objetivo comercial hay que desarrollarlo sin lugar a dudas

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