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Through which Channels do our Customer Segments                                                                        27

                  want to be reached? How are we reaching them now?


                  How are our Channels integrated? Which ones work best?

                  Which ones are most cost-eΩicient? How are we


                  integrating them with customer routines?




                 Channels have five distinct phases. Each channel can   choose between reaching its customers through its      Partner Channels lead to lower margins, but they
                 cover some or all of these phases. We can distinguish   own Channels, through partner Channels, or through   allow an organization to expand its reach and benefit
                 between direct Channels and indirect ones, as well as   a mix of both. Owned Channels can be direct, such as   from partner strengths. Owned Channels and particu-
                 between owned Channels and partner Channels.   an in-house sales force or a Web site, or they can be   larly direct ones have higher margins, but can be costly
                                                         indirect, such as retail stores owned or operated by the   to put in place and to operate. The trick is to find the
                 Finding the right mix of Channels to satisfy how   organization. Partner Channels are indirect and span a   right balance between the diΩerent types of Channels,
                 customers want to be reached is crucial in bringing   whole range of options, such as wholesale distribution,   to integrate them in a way to create a great customer
                 a Value Proposition to market. An organization can   retail, or partner-owned Web sites.  experience, and to maximize revenues.


                    Channel Types                                             Channel Phases

                         Sales force
                      Direct
                   Own
                        Web sales   1. Awareness       2. Evaluation       3. Purchase         4. Delivery         5. After sales
                                    How do we raise aware-  How do we help custom-  How do we allow custom-  How do we deliver a Value  How do we provide
                                    ness about our company’s   ers evaluate our organiza-  ers to purchase specific   Proposition to customers?  post-purchase customer
                         Own stores
                                    products and services?  tion’s Value Proposition?  products and services?      support?
                      Indirect
                         Partner
                                   stores
                   Partner
                         Wholesaler







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