Channels Lean Launchpad: Digital Health
UCSF Entrepreneurship Center!October 15, 2013
Abhas Gupta, MD!Mohr Davidow Ventures!
@abhasguptamd
Customer Growth
This Week
Next Week
Who sells your product and where does the sale occur? How does the product get from your company
to your customer?
Recommended Reading
"Selling To The Fortune 500, Government, And Other Lovecraftian Horrors"http://bit.ly/1fvxsb0
"Strategies for Building Marketplaces"http://bit.ly/17pS3FE
BIG IDEA:!Acquisition vs. Distribution
Cus
tom
er
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
Acquisition Channels Distribution Channels
Company Website
Vir
tual
C
hann
els
Phys
ical
C
hann
els
Direct vs. Indirect Channels
Who makes the sale?
Direct You make the sale
Indirect Others make the sale
Web Distribution
Channels
Your CompanyWebsite
E-Commerce SitesApp Platforms
2-step Distributions Aggregators
Social Commerce Flash Sales
Physical Distribution
ChanelsDirect Sales
OEM Distributors
Dealers, Retailers Value Added Resellers
System Integrators
Digital Health Distribution Channels
... and numerous other domain-specific ecosystems
Pop Health Platforms
Cloud EMRs
Wellness Platforms
Benefits Platforms
General Enterprise Platforms
BIG IDEA: Complexity & Channels
Incr
easi
ng M
arke
ting
Com
plex
ity
Web / Telesales
Increasing Solution Complexity
Retail
VARs
Direct Sales
Systems Integrators
TPAs, Payers
Field Sales, Consultants
Payer-Provider Platforms
Walgreens, Best Buy, Wal-Mart, Target
Higher c
omple
xity so
lutions
can
require
higher
value
chann
els
Case Example
Omada Health Website
Direct Sales!!
Wellness Platforms!!
VARs
Direct Sales!!
System Integrators
Omada Health!Digital pre-diabetes intervention
Consumers Providers(Integrated)
Self-Insured Employers
$30$20$15$35
Channel Economics
App Store (Indirect) Sales Example
Direct Sales Example
Choosing indirect vs. direct sales channels depends upon profit margins, volume, customer access, and solution complexity
$10$30$10$15$35
COGS OpEx Sales* Profit Reseller Discount
* 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
For Next Week
What are the distribution channels?
Channel diagram and channel economics
Channels Lean Launchpad: Digital Health
UCSF Entrepreneurship Center!October 15, 2013
Abhas Gupta, MD!Mohr Davidow Ventures!
@abhasguptamd
Top Related