1. Channels
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center!
October 15, 2013
Abhas Gupta, MD!
Mohr Davidow Ventures!
@abhasguptamd

2. Customer Growth
Next Week
This Week
Who sells your product and where does the sale occur?
How does the product get from your company
to your customer?

3. Recommended Reading
"Selling To The Fortune 500, Government,
And Other Lovecraftian Horrors"
http://bit.ly/1fvxsb0
"Strategies for Building Marketplaces"
http://bit.ly/17pS3FE

4. Acquisition Channels
Distribution Channels
How do you acquire and
activate potential customers?
!
Next Week’s Focus
Who “makes the sale” and
where does it occur?
!
This Week’s Focus
Customer
Company
Website
Physical
Channels
Virtual
Channels
BIG IDEA:!
Acquisition vs. Distribution

5. Direct vs. Indirect Channels
Who makes
the sale?
Web
Distribution
Channels
Physical
Distribution
Chanels
Direct
You make the sale
Indirect
Others make the sale
Your Company
Website
E-Commerce Sites
App Platforms
2-step Distributions
Aggregators
Social Commerce
Flash Sales
Direct Sales
OEM
Distributors
Dealers, Retailers
Value Added Resellers
System Integrators

6. Digital Health
Distribution Channels
Cloud EMRs
Pop Health Platforms
Wellness Platforms
Benefits Platforms
General Enterprise
Platforms
... and numerous other domain-specific ecosystems

7. Increasing Marketing Complexity
BIG IDEA:
Complexity & Channels
an
c
ns els
io
lut ann
o
y s e ch
it
Direct
lex valu
p r
Sales
com ighe
Field Sales,
her re h
Consultants
H ig q u i
VARs
re
TPAs, Payers
Web /
Telesales
Retail
Walgreens, Best Buy,
Wal-Mart,Target
Increasing Solution Complexity
Systems
Integrators
Payer-Provider
Platforms

8. Case Example
Omada Health!
Digital pre-diabetes intervention
Consumers
Providers
(Integrated)
Self-Insured
Employers
Omada Health
Website
Direct Sales!
Direct Sales!
!
!
System Integrators
Wellness Platforms!
!
VARs

9. Channel Economics
Direct Sales Example
COGS
OpEx
$35
Sales*
$15
Profit
Reseller
$10
Discount
$30
$10
* Sales is usually categorized under OpEx, along with R&D and G&A costs, but is separated
here to illustrate channel selection’s impact on company sales’ costs
App Store (Indirect) Sales Example
$35
$15
$20
$30
Choosing indirect vs. direct sales channels depends upon profit
margins, volume, customer access, and solution complexity

10. For Next Week
What are the
distribution channels?
Channel diagram and
channel economics

11. Channels
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center!
October 15, 2013
Abhas Gupta, MD!
Mohr Davidow Ventures!
@abhasguptamd