A deep dive into Channels and why they matter for your business
- Business Rescue Business Growth
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Finding the best way to reach your customers and deliver your products and services is crucial to the success of your small business. Channels are the way you do this and are fundamental to the Business Model Canvas.
Channels can be grouped into distribution, sales and marketing channels. Marketing is inextricably linked with the delivery of the Value Proposition, which explains why people will buy from you and not your competitors.
The Channels you use depend on the nature of your business and include physical premises, online and sales agents.
When it comes to channels there’s a lot to consider, so this month we thought we’d focus on this important element of the Business Model. At Be Rescued we love sharing small business tips and advice.
We’re passionate about demystifying business procedures to help you navigate complex issues. Maria can manage the whole process for you through our Business Manager service and give you small business advice. Get in touch with Maria to find out more.
Channels explained and what they mean for your small business
Channels are the way a company reaches its customer segments and communicates with this vital group.
Now for the science bit!
There are five channel phases: Awareness, Evaluation, Purchase, Delivery and After-sales.
So, let’s take a look at the function of each phase:
1. Awareness
This phase is crucial and focuses on raising awareness about products and/or services you are offering among customers.
You need to choose the right Channels for your business. These could be social media, digital marketing, Public Relations, advertising and more.
2. Evaluation
Phase two looks at helping customers evaluate the Value Proposition (your products and/or services). How do your customers assess the value you promise to deliver?
You could use a variety of ways to evaluate the Value Proposition including surveys, monitoring social media and reviews.
3. Purchase
The next phase centres on the all important customer purchase. How do you enable customers to buy your products and/or services?
Do your customers come to a physical premises or purchase online or a combination of both?
4. Delivery
How do you deliver your Value Proposition to customers?
How do you deliver what you promise in terms of your products or services?
This could be over the counter in a bricks and mortar premises or via a delivery service.
5. After-sales
It doesn’t end with the sale. Customers expect to see customer support available post-purchase.
This could be a clear returns policy and customer support to help with using a product or service or in the event of a problem.
So, there’s lots to consider with Channels with huge implications for customer experience.
Do you need advice on now to approach Channels for your business?
Maria has solid experience helping small business owners build and grow their businesses and can give small business advice on a range of issues.
Book an appointment with Maria for bespoke small business advice and support.
Before you dive in, take a step back
As with all things in business the key advice is to Plan, Plan, Plan. Take a step back and ask vital questions before getting started on any Channel activity.
The most important questions focus on your customers. Look at your customer segments and ask; ‘Which Channels should we use to reach our customers?’
Some Channels will be more relevant to your customers than others.
You need to ask; ‘Which Channels work best for our customer base?’ Identifying the right sales and distribution channels is crucial to optimising business success.
Evaluating the performance of each Channel will help you discover the best Channels for your business. Any Channel that delivers a good return on investment is worth further investment.
Some businesses choose to use a distribution partner as it can help them reach their customer segments in a more cost-effective way.
It is also worth checking what your competition is doing or not to help compare and measure.
Do you need small business advice? Find out how Be Rescued can help your business.
Small business advice: Why Marketing Channels are crucial
Whichever your chosen route to market, it’s all about getting your product and/or service in front of the right customers at the right time with the right message about your Value Proposition.
- Marketing is crucial to each of the five channel phases: Awareness, Evaluation, Purchase, Delivery and After-sales.
- Communication is key. Be clear in your messaging and speak directly to your ideal customer.
- Quantify the value your business delivers across your marketing materials - offline and online.
- Share success stories on your website, in customer case studies and across social media.
- Harness user generated content to provide social proof about customer response to the delivery of your Value Proposition.
- Channels are crucial to the way you communicate your Value Proposition, which explains why people will buy from your business and not your competitors.
- Marketing is the way you communicate value to specific customer segments and raise awareness of the benefits of using your products or services among your target audience.
You can choose from a range of marketing channels depending on what’s most relevant to your ideal customer:
Offline: Public Relations, print marketing, print advertising, TV, radio advertising and face-to-face events.
Online: digital channels including your website, content marketing, pay per click advertising, Search Engine Optimisation, email marketing, social media marketing, video marketing and virtual events.
Over recent months there’s been an acceleration in digital marketing with many small businesses bringing their services and products online.
However, though digital is a must for small businesses, an integrated approach to marketing works well combining a variety of Channels from offline and online.
Takeaways
The way you use Channels has huge implications for customer experience, how customers perceive your Value Proposition and for sales performance.
Follow small business advice to plan everything and ask vital questions before getting started on any Channel activity.
Focus on the customer to discover the best route to market for your business and achieve success with Channels.
Marketing is crucial to each of the Channel phases with an integrated approach combining offline and digital channels working best for small businesses.
If you need small business advice on how to use Channels effectively, get in touch with Maria at Be Rescued.
At Be Rescued we’re driven by a mission to help small business owners grow their businesses. We’d love to help yours thrive!