Post by wsannhbz on Dec 5, 2023 9:57:10 GMT
To better understand what distribution channels actually are, it’s worth looking at the functions they perform. This was perfectly described by the creators of the Business Model Canvas methodology.
According to the authors of Business Model Canvas, distribution Special Data channels have five functions:
Awareness. Distribution channels are used to increase customer awareness of the company’s products and services. These channels can include social media, press, or own media, such as a blog, podcast, or YouTube channel.
Evaluation. Distribution channels are also to help customers express their opinions about products or services. This allows the company to get closer to its customers, listen to their feedback, and improve its offer.
Purchasing. Distribution channels also determine the buying opportunities we create for customers. Whether we offer online sales or use distribution partners, for example, has an impact on the convenience of their purchases.
Customer value proposition. Distribution channels determine how we deliver the value proposition to customers. So they perform a logistical function.
Post-purchasing. Distribution channels can also have an impact on the type of support we provide to our customers after purchase, such as a 24-hour hotline.
Keep an eye on technology
Technological developments have had a tremendous impact on distribution channels – in each of the five mentioned areas. Just look at some of the changes brought about by the popularization of the Internet. Today, in the age of artificial intelligence, blockchain technology, the Internet of Things, and augmented and virtual reality, we’re going even further. How has technological progress affected the distribution channels of brands like Nike, Louis Vuitton, and IKEA? Let’s take a look at twelve interesting examples.
AI
Walmart
Walmart, the American supermarket chain, is using artificial intelligence in several areas. The first one is online shopping. Walmart customers can use the Walmart Voice Order app to order groceries delivered to their homes using voice commands. The app uses natural language processing technology to understand its callers, who do not have to be precise in their commands. If they don’t specify a particular brand of product when they order, Walmart Voice Order knows exactly what they want. That’s because its knowledge of specific customers is based on their purchase history.
According to the authors of Business Model Canvas, distribution Special Data channels have five functions:
Awareness. Distribution channels are used to increase customer awareness of the company’s products and services. These channels can include social media, press, or own media, such as a blog, podcast, or YouTube channel.
Evaluation. Distribution channels are also to help customers express their opinions about products or services. This allows the company to get closer to its customers, listen to their feedback, and improve its offer.
Purchasing. Distribution channels also determine the buying opportunities we create for customers. Whether we offer online sales or use distribution partners, for example, has an impact on the convenience of their purchases.
Customer value proposition. Distribution channels determine how we deliver the value proposition to customers. So they perform a logistical function.
Post-purchasing. Distribution channels can also have an impact on the type of support we provide to our customers after purchase, such as a 24-hour hotline.
Keep an eye on technology
Technological developments have had a tremendous impact on distribution channels – in each of the five mentioned areas. Just look at some of the changes brought about by the popularization of the Internet. Today, in the age of artificial intelligence, blockchain technology, the Internet of Things, and augmented and virtual reality, we’re going even further. How has technological progress affected the distribution channels of brands like Nike, Louis Vuitton, and IKEA? Let’s take a look at twelve interesting examples.
AI
Walmart
Walmart, the American supermarket chain, is using artificial intelligence in several areas. The first one is online shopping. Walmart customers can use the Walmart Voice Order app to order groceries delivered to their homes using voice commands. The app uses natural language processing technology to understand its callers, who do not have to be precise in their commands. If they don’t specify a particular brand of product when they order, Walmart Voice Order knows exactly what they want. That’s because its knowledge of specific customers is based on their purchase history.