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UCSF Life Science Week 3 Digital Health: Channels
This document discusses customer acquisition and distribution channels for digital health startups. It defines acquisition channels as how potential customers are acquired and activated, and distribution channels as who makes the sale and where it occurs. Direct channels involve the company making the sale directly through their website or field sales. Indirect channels involve others making the sale through platforms, retailers, or value-added resellers. The complexity of digital health solutions and products impacts the appropriate channels. An example is provided of Omada Health using different channels like their website, wellness platforms, and resellers to reach consumers, providers and self-insured employers. Channel selection impacts company sales costs and margins.
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UCSF Life Science Week 3 Digital Health: Channels
- 1. Channels Lean Launchpad: DigitalHealth UCSF Entrepreneurship Center! October 15, 2013 Abhas Gupta, MD! Mohr Davidow Ventures! @abhasguptamd
- 2. Customer Growth Next Week ThisWeek 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 ToThe Fortune 500, Government, And Other Lovecraftian Horrors" http://bit.ly/1fvxsb0 "Strategies for Building Marketplaces" http://bit.ly/17pS3FE
- 4. Acquisition Channels Distribution Channels Howdo 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. IndirectChannels 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 CloudEMRs Pop Health Platforms Wellness Platforms Benefits Platforms General Enterprise Platforms ... and numerous other domain-specific ecosystems
- 7. Increasing Marketing Complexity BIGIDEA: 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! Digitalpre-diabetes intervention Consumers Providers (Integrated) Self-Insured Employers Omada Health Website Direct Sales! Direct Sales! ! ! System Integrators Wellness Platforms! ! VARs
- 9. Channel Economics Direct SalesExample 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 Whatare the distribution channels? Channel diagram and channel economics
- 11. Channels Lean Launchpad: DigitalHealth UCSF Entrepreneurship Center! October 15, 2013 Abhas Gupta, MD! Mohr Davidow Ventures! @abhasguptamd