How do I use the Channels building block of the Business Model Canvas?

• Through which Channels do our Customer Segments want to be reached?
• How are we reaching them now?
• How are our Channels integrated? Which ones work best?
• Which ones are most cost-efficient?
• How are we integrating them with customer routines?

Your communication, distribution, and sales Channels comprise your company's interface with customers. Your Channels are customer touch points that play an important role in the customer experience. Your Channels serve several functions, including:

• Raising awareness among customers about a company's products and services
• Helping customers evaluate a company's Value Proposition
• Allowing customers to purchase specific products and services
• Delivering a Value Proposition to customers
• Providing post-purchase customer support

Finding the right mix of Channels to satisfy how customers want to be reached is crucial in bringing a Value Proposition to market. You can choose between reaching your customers through your own Channels, through partner Channels, or through a mix of both.

Owned Direct

Owned Channels can be an in-house sales force or a Web site, or retail stores owned or operated by the organization. Owned Channels have higher margins, but can be costly to put in place and to operate.

Partner Indirect

Partner Channels are indirect and span a whole range of options, such as wholesale distribution, retail, or partner-owned Web sites. Partner Channels lead to lower margins, but they allow an organization to expand its reach and benefit from partner strengths.