Channels in Social Business Model Canvas
What are they and how to define the best ones?
In the Social Business Model Canvas, “Channels” represent the various ways and pathways through which social organizations deliver their value propositions to their target audiences. Effective channels are crucial for building strong relationships, to generate new or recurring revenues, and to maximize positive social impact. This article will explore what channels in Social Business Model Canvas are, why they matter, and how to optimize them for a impact startup or social venture.
What are “Channels”?
Channels are mediums through which a socially-oriented organization communicates, sells, and distributes its products or services to beneficiaries, customers and broader audiences. The channels that a social enterprise chooses and implements can significantly influence the reach and effectiveness of its business model. So, remember: the better your channels are, the more chances you will have to successfully connect with your target market.
- Physical Channels: As the name suggests, physical channels are tangible means used to show or deliver products and services to end customers/beneficiaries. Typical examples include face-to-face contact, community centers, and physical stores.
- Digital Channels: Conversely, digital channels leverage online tools and platforms to engage with, market to, and deliver products or services to different audiences. As a rule of thumb, operating over the internet can ensure higher automation and scalability, but capabilities to access may vary from target to target, so you need to take all these aspects into consideration. Social media, emails, e-commerces are only part of the channels falling into this category.
- Direct Channels: Direct channels enable, as you may guess, direct interactions between the organization and its end customers, beneficiaries, or users. Examples of direct channels are company-owned websites, newsletters, stores, or direct sales teams.
- Indirect Channels: Indirect channels are basically intermediaries that help distribute or sell products or services, and are not directly owned by the organization. They include, for instance, wholesalers, distributors, online marketplaces or press.
- Awareness: those used to inform potential audiences about the organization and its proposed solutions.
- Evaluation: those helping customers and/or beneficiaries assess the value of specific products or services offered.
- Purchase: those that facilitate the transaction process, allowing end customers to purchase a given product/service.
- Delivery: for asynchronous solutions, ensuring that the product or service reaches the audience.
- After-Sales Support: finally, depending on the business, those used to providing ongoing support and service, even after sales and delivery.
Choosing channels in Social Business Model Canvas
If you are about to use the Social Business Model Canvas to ideate new business models or innovate existing ones, there are few things you should keep in mind to make the most out of this section.
Here are couple best practices for optimizing your choices when using the Canvas:
- Understand Your Audience: it is key to correctly identify where your target customers and beneficiaries are most active. For instance, are they more engaged on social media, or do they attend specific kinds of offline events? Tailor your channels to match their preferences and avoid wasted efforts.
- Integrate Channels: being multi-channel is essential not only for for-profit businesses, but also for non-profit ones. Ensuring a seamless experience across all channels will empower customers and beneficiaries to interact with your brand and have smooth transitions between different stages of the funnel.
- Leverage Technology: in a rapidly evolving, AI-driven era, it’s more important than ever to leverage IT solutions and make the most out of your channels. Consider using technology to both integrate channels one another, as well as to enhance your outreach efforts and increase ease of management.
- Monitor and Adapt: KPIs are the only way for an organization to truly assess its performances. So, besides monitoring business metrics, regularly review how your channels are performing and use analytics to track data down. This way, you are more likely to understand the effectiveness of your strategies and change or adapt them, if needed.
In the image above, you can find a the template we use at Impact Jungle, adapted from those developed by Tandemic and Social Innovation Lab. Remember that all the twelve building blocks of the Canvas are intertwined. Thus, once filled in the “Channels” section, remember to look at the overall business model and iterate for constante improvement.
Conclusion
As seen, channels in the Social Business Model Canvas are more than just distribution pathways. They are indeed vital and integral to how social organizations manage to connect with their audiences and succeed in delivering value.
By understanding the different types of channels and their functions, social enterprises can enhance their reach, effectiveness, and impact. Follow the best practices provided and remember to regularly evaluate how your channels perform. Only by constantly optimizing your channel strategy your business will remain agile, responsive, and consistent to the needs of your audiences.
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