Distribution Model

What is it?

An innovation isn’t a real innovation until it has been adopted by customers and put to use. And in order for your customers to adopt and use your innovation, they will need to:

1. Discover it,
2. Explore it,
3. Purchase it,
4. Receive it, and
5. Get help when they have a problem with it.

Your distribution model describes your plan for helping customers make this journey and is defined by the following four "dimensions:"

#1 - Stage

The first thing you will want to do when developing your distribution model is to define the key stages of your customer's journey as they go from, "I didn't know this thing existed," to "I am an accomplished user and an avid fan." While the details vary from one innovation to the next, typical milestones along this path include:

• Discovery: How will your customer discover that your innovation exists?
• Exploration: How will your customer evaluate your innovation to determine whehter or not they want to purchase / use it?
• Purchase: Assuming a purchase is required, how and where will your customer do that? E.g online? In a store? Etc.
• Receive and On-Board: Where will your customer actually take delivery or gain access to the solution? Will it be shipped to their home? Will they login online? Will a technicia install it? Etc. Also, how will they get through the early hurdles of using the innovation for the very first time?
• Support: When your customer has a question or a problem, where and how will they get help?
• Termination/Disposal/Repurposing: Everything comes to an end. When your customers are done with your innovation, how do they, for example, terminate the service or dispose of the product?

#2 - Channel

At each stage of your customer's journey, you will connect with them and meet their need through one or more specific "channels." A channel, in this context, is the organizational and/or technical arrangement that allows you to meet the customer's need for information and help. For example, all of the following are "channels:"

• A website
• A team of sales professionals
• An advertising platform such as Facebook, Google Adwords, or LinkedIn
• A customer service call center
• Retail outlets such as Walmart
• Etc.

#3 - Channel Type

All of the specific channels may be grouped into two broad categories, as follows:

• Direct: These are channels that are owned and operated by the organization providing the innovation. For example, your company's website and salesforce is a "direct" channel.
• Indirect: These are channels that are owned and operated by other individuals/organizations. For example, if you are a manufacturer of dinnerware, a retailer such as Macy's or The Pottery Barn might serve as an "indirect" channel for getting your innovation out into the world.

#4 - Method

Within any given, there are specific methods or tactics that are used to communicate with and serve the customer. For example, your sales force may seek to make customers aware of your innovation through one or more of the following methods:

• Networking,
• Cold calling,
• Exhibiting at trade shows,
• Etc.

We may combine these elements into a simple but powerful plan, using a table as in the following example: