How are you reaching your stakeholder segments to deliver your value (think communication, distribution, sales)?
The Commercial Dimension
Communication, distribution, and sales channels comprise a company’s interface with customers. Channels have five distinct phases. Each channel can cover some or all of these phases:
- Awareness – How do we raise awareness about our product(s)/service(s)?
- Evaluation – How do we help customers evaluate our value proposition?
- Purchase – How do we allow customers to purchase specific products and services?
- Delivery – How do we deliver a value proposition to customers?
- After sales – How do we provide post-purchase customer support?
[continued below]
The Impact Dimension
The five phases are equally important for social enterprises, and a few other questions are raised in the process, e.g.,:
- Awareness – Do we raise awareness of products/services AND impact?
- Evaluation – How do we help customers evaluate our impact value proposition? What evidence and stories can we/should we share?
- Purchase – Can we extend the way customers find and purchase our goods/services?
- Delivery – How can we connect our customers more effectively through our delivery mechanisms?
- After sales – How can we ensure that they will champion social enterprise?
[continued below]
Professor Sarah Soule explains the goal of the Channels block, and poses questions for you to consider as you think through strategic options for your venture. She will discuss the example of Equal Opportunity Schools, a national nonprofit organization with both earned income and philanthropic support. (1:56)
Design Prompts
- What channels are necessary for initial adoption of your value proposition?
- What channels are most likely to reach your customers? Your beneficiaries?
- What channels are necessary for retaining and growing your customer and beneficiary stakeholders?
- What channels are cost effective and achieve optimal revenue (or earned income) streams.
- What channels are needed at different points of the sales cycle?
For-profit example
d.light
Channels:
- Importers [c]
- Retailers (online and offline) [c]
- Distributors [c]
- Call centers [c]
- Entrepreneurs [b]
- POS marketing materials [b]
- Advertising [b]
- Word of mouth [b]
d.light sells solar energy solutions to populations without electricity in 60+ nations. See project description and its Impact BMC
Nonprofit example
Equal Opportunity Schools
Channels:
- Importers [c]
- Retailers (online and offline) [c]
- Distributors [c]
- Call centers [c]
- Entrepreneurs [b]
- POS marketing materials [b]
- Advertising [b]
- Word of mouth [b]
d.light sells solar energy solutions to populations without electricity in 60+ nations. See project description and its Impact BMC
i = Impact dimensions, c = Commercial dimensions, b = Both dimensions
More about The Commercial Dimension
We can distinguish between direct channels (e.g., sales force, website) and indirect ones (e.g., own stores, partner stores, wholesalers), as well as between owned channels and partner channels.
More about The Impact Dimension
Beyond Customer Channels
As the organization carefully crafts its relationships with all stakeholders, incl. volunteers, beneficiaries, employees, suppliers, and impact customers (foundations, philanthropists, governments), communications and delivery channels need to be thoughtfully considered and selected to reach these constituencies.
Deep dive
- Osterwalder, A., & Pigneur, Y. (2009). Business Model Generation. New Jersey: John Wiley & Sons, Inc. See pages 26-27
- Burkett, I. Using The Business Model Canvas for Social Enterprise Design. See page 18
- Calderon, J. The Social Blueprint Toolkit. See page 15