CHANNELS TO REACH YOUR CUSTOMER
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Canvas communication channels are those media that are used to communicate a company's value proposition to its target audience. Canvas channels are all the media we use to communicate or interact with our customers and 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 discover 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 for establishing an after-sales relationship with customers, something that adds value to the business and contributes to their loyalty to our products or services. So that the business model (+) to be successful it is necessary to select the most appropriate channels, those preferred by customers and with which the best results are obtained in each of the phases of the purchasing process.
Channels of communication
Some examples of Canvas communication channels are:
- Social networking: Facebook, Instagram, Twitter, LinkedIn, etc.
- Website: a website that can include blogs, testimonials, products, services, etc.
- Online advertising: paid ads on Google Ads, Facebook Ads, Instagram Ads, etc.
- Email marketing: email campaigns targeting a list of potential or existing customers.
- Advertising in traditional media: advertisements on television, radio, newspapers, magazines, etc.
- Content marketing: creation and distribution of relevant and valuable content to attract and retain a target audience.
- Public relations: events, interviews, press releases, etc.
- Influencer marketing: collaborations with social media influencers to promote the company.
- Partnerships and collaborations with other companies: collaborations to reach new customers and retain existing ones.
TYPES OF CANVAS CHANNELS
We can classify them according to the function they fulfil in the business model, the way in which they interact with the customer and their relationship with the company. This is a useful way to analyse and evaluate the characteristics of the available media in order to select the most suitable ones.
ACCORDING TO THEIR FUNCTION:
We use these channels to communicate with the market, mainly to communicate the value proposition. 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.
They are the ones we use to get our products to market, a sales outlet, a distributor, or a combination of these.
These are means to bring our value proposition closer to the customer in order to promote sales, especially in the short term. For example: giving away free samples, offering package prices, organising trade fairs and other events.
ACCORDING TO THEIR MEMBERSHIP OF THE COMPANY AND INTERACTION WITH THE CUSTOMER:
These are proprietary channels, created and used to obtain cost-reducing benefits by establishing direct interaction with customers. For example: a website, a commercial department or a sales department.
These are means external to the company 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.
In a nutshell, Canvas channel types refer to the different media used to communicate with the market, deliver products or services to customers and promote sales. These channels can be classified into three categories according to their function: communication, distribution and sales. In addition, they can also be classified according to their company affiliation and their interaction with the customer, as direct and indirect channels. For example, If an entrepreneur is setting up a business selling electronic products, they can use a communication channel such as social media and online advertisements to inform customers about their products and value proposition. You can also use a distribution channel such as your own online shop or a distributor to get the products to the market. And finally, you can use a sales channel such as organising trade fairs and events to promote sales in the short term.
In terms of channel ownership, the entrepreneur can use a direct channel such as a website to interact directly with customers and reduce costs. But they can also use an indirect channel such as shops or distributors to facilitate customers' access to their products, although this may generate an increase in the final cost of the products or services.
How to select the right channels for a new company?
Selecting the right channels for a new business is an important and strategic process that requires constant analysis, validation and adjustment. It is important that the chosen Canvas communication channels are consistent with the company's target audience. (your buyer persona (see+)) and that they are used strategically to achieve the objectives of the commercial objectives of the company (see+ TIP).
Here are some steps that can help you select the right channels:
- Know your ideal customer: identify your target audience and their buying behaviour to understand which channels they use to obtain information and make purchases.
- Analyse the competition: research your competitors to identify the channels they use to reach their target audience.
- Analyse the available channels: research the different canvas communication channels available and compare their costs. (CAC) (see+ TIP), scope and effectiveness to decide which ones are the best fit for your business.
- Try different channels: test different communication channels to determine which are most effective in reaching your buyer persona.
- Measure and adjust your strategies: measure the performance of each channel and adjust your strategies according to the results obtained.
- Establish an omni-channel strategy: use a mix of channels to reach your target audience at different touch points and improve the effectiveness of your strategy.
It is important to remember that the channels selected must be consistent with the company's value proposition and be used strategically to achieve the business objectives. Be willing to make adjustments and changes based on the results obtained to maximise the effectiveness of the chosen channels.
Examples of communication channels in well-known companies
Below are some practical examples of communication channels used by well-known companies:
- Coca-Cola: uses a combination of traditional media, such as television and radio, and digital media, such as social media and email, to reach its target audience. It also uses sponsored events and promotions to promote its products.
- Airbnb: mainly uses digital channels, such as its website, social media and email, to reach its users. It also uses online advertising and sponsored events to promote its brand.
- Amazon: primarily uses its website to reach its customers, but also uses online advertising and promotional events, such as Prime Day, to increase sales.
- Nike: mainly uses television and online advertising, as well as sponsored sporting events and collaborations with celebrities and sportsmen and women, to reach its target audience.
- Apple: primarily uses its website and physical shops to reach its customers, but also uses online advertising and product launch events to generate interest in its brand and products.
In general, companies use a combination of communication channels to reach their target audiences. The selection of specific channels depends on factors such as target audience, marketing objectives, budget and available resources.
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:
- Direct traffic.
- SEO (+).
- SEM (+).
- Facebook (+) organic.
- Twitter (+) Organic.
- YouTube (+) Organic.
- Facebook campaigns.
- Pinterest (+).
- Tik Tok.
- Twitter campaigns.
- YouTube Campaigns (+).
- E-mail marketing (+).
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 does not make sense for our customer acquisition cost to be €20. On the other hand, it would make sense to invest that if we sell luxury cruises on the Nile and the average purchase value is €3,500. Therefore, the CAC, or customer acquisition cost, is an 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.
Example of customer acquisition cost (CAC) for each communication channel
Let's imagine that an online clothing retailer wants to calculate the customer acquisition cost (CAC) for each communication channel. Let's assume that the company has used different channels to advertise its products and services and has invested in advertising in each of them.
Below is an example of how the CAC could be calculated for each channel:
CHANNEL 1: FACEBOOK CAMPAIGNS
- The company has invested 500 euros in Facebook advertising and has gained 50 new customers. The CAC for this channel would be €10 (500/50).
CHANNEL 2: GOOGLE ADS
- The company has invested 750 euros in advertising on Google Ads and has gained 60 new customers. The CAC for this channel would be 12.5 euros (750/60).
CHANNEL 3: EVENTS
- The company has invested 1,500 euros in the organisation of an event and has gained 30 new customers. The CAC for this channel would be 50 euros (1,500/30).
In this case, the company could conclude that the channel with the lowest cost of customer acquisition is Facebook Campaigns, followed by Google Ads and the event. Based on this information, the company could decide in which channel to invest more resources in order to obtain better results and attract more profitable customers.
Discover channels using the journey mapping (VER+)
For the selection of CANVAS channels, study the different phases your customer goes through during the purchasing process, from the moment he detects his problem or need until he decides to provide a solution.:
Searches for possible solutions to their problem or need. Identify preferred information search media. For example: SEO positioning on websites, advertisements in newspapers and TV, a trade magazine, a marquee in front of .....
Analyse in detail the information you have gathered, consider the different alternatives according to the benefits they offer and the budget available. The channel should be useful to help the customer evaluate your proposal, explaining the features that add value. It is advisable to use publications on websites and catalogues.
PURCHASE PHASE PHASE
It makes 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 customer, to provide sufficient information to allow him/her to know where and how to buy, as well as to offer various means or channels of payment.
Receives the product or service. It is necessary to think about the best way to deliver the value proposition using effective and efficient channels, which are adequate to meet delivery times and other requirements of each customer segment.
Obtains personalised attention in reference to the good or service after having received it, either by request or by the company's own initiative. Channels are required to implement strategies to retain customers.
MISTAKES TO AVOID:
There are entrepreneurs who think that with money they could carry out many advertising campaigns on ALL channels until they reach all customers. The key to success for a good entrepreneur lies in discovering the channel that provides the most profitable and loyal customers with the least investment, and achieving this by investing very few resources.
Case study for an entrepreneur to identify the channels that suit him best
Suppose an entrepreneur has developed a new mobile application for task management and wants to identify the most appropriate communication channels to reach his target audience of young and busy professionals.
- Identify the profile of the target audience: the entrepreneur should have a good understanding of his target audience, in this case young and busy professionals, their consumption habits and communication preferences. For example, this audience is likely to be active on social media and use mobile devices frequently.
- Analyse competitor channels: the entrepreneur should analyse the channels used by applications similar to his or her own and assess their effectiveness. For example, you can investigate how they promote themselves on social media, whether they use online advertising or whether they participate in industry events or trade fairs.
- Evaluation of available communication channels: the entrepreneur must assess the available communication channels and decide which ones are the most appropriate to reach his or her target audience. In this case, some channels that could be effective include:
- Social networking: Young and busy professionals are often active on social networks such as Instagram, Facebook and Twitter. The entrepreneur could use these platforms to promote the app and reach their target audience.
- Online advertising: Online advertisements can be effective in reaching a broad and targeted audience. The entrepreneur could consider advertising on search engines and social media to promote the application.
- Events and fairs in the sector: Participating in industry events and trade fairs can be an effective way to promote the application and build relationships with potential customers and other industry players.
- Establish a budget: the entrepreneur should establish a budget for the selected communication channels and allocate resources effectively.
- Measure and adjust: it is important to measure the impact of the selected communication channels and adjust the strategy according to the results obtained. The entrepreneur can use analytical tools to measure website traffic and app downloads, and adjust the communication strategy according to the results obtained.
Discover your communication channels with ChatGPT
Researching communication channels is crucial for an entrepreneur as it will allow them to identify the channels that are most effective in reaching their target audience and promoting their business effectively.
HERE ARE SOME ADDITIONAL SUGGESTIONS FOR INVESTING IN COMMUNICATION CHANNELS WITH CHATGPT:
- Research the channels used by your target audience: The entrepreneur should research the communication channels that his or her target audience uses most frequently. This can be done using social media analysis tools, market research or surveys. ChatGPT can provide demographic and behavioural data of potential customers to identify the most effective channels.
- Analyse competitors: The entrepreneur should research the channels his competitors are using and evaluate their effectiveness. You can use competitor analysis tools to see where your competitors have an online presence and how they are promoting their products or services. ChatGPT can provide information on what channels competitors are using.
- Consider costs: The entrepreneur should consider the costs of different communication channels before choosing them. Some communication channels may be more expensive than others, and the entrepreneur should ensure that their resources are being used effectively. ChatGPT can provide information on typical costs of different communication channels and suggest low-cost marketing strategies.
- Test different channels: The entrepreneur can test different communication channels to see which are the most effective for his or her business. He can use analytical tools to measure the success of each channel and make adjustments accordingly. ChatGPT can provide suggestions on how to test different communication channels and how to measure their effectiveness.
In a nutshell, Researching communication channels is a critical step for an entrepreneur seeking to promote his or her business effectively. In doing so specific questions a ChatGPT, the entrepreneur can gain valuable information on the most effective channels for his business and how to use them to reach his target audience.
Testing different communication channels is essential for any entrepreneur seeking to identify the most effective channels for their business.
HERE ARE SOME PRACTICAL EXAMPLES OF HOW AN ENTREPRENEUR CAN TRY OUT DIFFERENT COMMUNICATION CHANNELS:
The entrepreneur can test different social media platforms to see which is most effective for his or her business. For example, if the entrepreneur has an online fashion clothing business, they could try Instagram, Facebook, Pinterest and TikTok to promote their business.
Then, using analytics tools, the entrepreneur can measure the success of each social media channel and make adjustments accordingly. ChatGPT can provide suggestions on what type of content works best on each platform and how to measure the success of the social media strategy.
The entrepreneur can try different forms of online advertising, such as Google ads, social media advertising, YouTube advertising and advertising on websites relevant to their business.
The entrepreneur can set different budgets and measure the effectiveness of each advertising channel using analytical tools. ChatGPT can provide suggestions on how to set up an effective online advertising strategy and how to measure its effectiveness.
The entrepreneur can test different email strategies, such as different subject lines, different calls to action and different recipient lists. By A/B testing, the entrepreneur can measure the effectiveness of each strategy and make adjustments accordingly.
ChatGPT can provide suggestions on how to personalise emails, how to segment email lists and how to measure the effectiveness of the email strategy.
The entrepreneur can try different types of events, such as trade shows, networking events, product launch events and webinars. By measuring the attendance and interest generated by each type of event, the entrepreneur can determine which type of event is most effective for their business. ChatGPT can provide suggestions on how to organise successful events and how to measure their effectiveness.
In a nutshell, testing different communication channels is an effective way for an entrepreneur to identify the most effective channels for their business. By using analytical tools and A/B testing, the entrepreneur can measure the effectiveness of each communication channel and make adjustments accordingly. ChatGPT can provide suggestions on how to establish an effective strategy for each communication channel and how to measure its success.
APPLY THIS TIP TO YOUR PROJECT
Now that you know about CANVAS channels, answer the following questions:
- 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!!!!
- Which ones deliver the best results at each stage? More customers and more LTV
- Which ones are more profitable? Invest 100 euros in each and compare results, calculate the CAC of each channel.
- Which channels are the most suitable for your company?
- Which ones have you already tested ("validated") and what positive results have you achieved in attracting customers?
- Which one provides you with the most customers at the lowest CAC cost?
- How can we choose the CHANNEL through which we can grow the most?
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