Customer Segments
For whom are we creating value? Who are our most important customers?
Hint: Consider population density, climate, urban/rural settings, specific countries or regions.
Geographic segmentation: Where do they live? Does my product target one city only (store) or a country, region, or the world (online sales for a large segment of customers)?
Hint: Think about age, gender, income, education, occupation, family status, generations (Gen Z, Millennials).
Demographic: Age – Gender – Religion – Nationality – Education Level – Profession.
Hint: What are their lifestyle, values, interests, opinions, personality traits, social class? How do they see themselves?
Psychological: Understanding customers' lifestyles, values, and interests.
Hint: Consider their purchasing behavior, product usage, brand loyalty, benefits sought, readiness to buy. Are they price-sensitive?
Behavioral: How they shop - How they make purchasing decisions.
After segmenting and identifying the target customer segment, it must be ensured that this segment is:
Measurable: Is there a sufficient number of customers to buy the product?
Financially capable of purchasing or a sufficient number of customers to achieve profits.
Accessible: The target segment must be accessible via delivery or online, or even that we can communicate in the customers' language and style.
Example: After appropriate segmentation, we found that the target group is working mothers in Europe. We must count their number, determine their behavior and psychological needs, and ensure that we can reach them and promote our product in their language and in a way that suits their interests and values. Or even create a new interest for them.
Value Propositions
What value do we deliver to the customer? Which problems are we solving? What products/services are we offering?
Hint: Focus on unique selling points and how they solve customer pains or create gains. List distinct value propositions for each customer segment if applicable.
What pain will the product alleviate (Pain):
How do I achieve what the customer needs to get (Benefit) (Gain):
How do I make it easier for them to get this benefit from the tasks the customer performs (Job):
Channels
Through which Channels do our Customer Segments want to be reached? How are we reaching them now?
Hint: How do we raise awareness about our products/services?
Product promotion:
(Traditional - Online - Inside stores 'suggest more products' and malls - airports...) according to the product - its characteristics - how to obtain it - the customer and their behavior - their locations.
Hint: How do we help customers evaluate our Value Proposition?
Customer evaluation and experience: How can the customer try the product tangibly or intangibly: photos - video - explanation..
Hint: How do we allow customers to purchase?
Purchase mechanism: (Store - Online)
Hint: How do we deliver the Value Proposition?
Tوصيل: (From store - transportation - reaching the customer - being where the customer is) such as selling a mobile phone with two SIM cards - a mobile SIM card - currency exchange - tours and tourist trips - travel accessories for travelers at airports or international train stations.
Hint: How do we provide post-purchase customer support?
After-sales communication: (Product evaluation - exchange and return - offers, discounts, and gifts - reminder or greeting messages)
Customer Relationships
What type of relationship does each Customer Segment expect? How costly are they?
Hint: Consider the level of interaction and personalization required for each segment. How do you get, keep, and grow customers?
Acquiring the customer: Acquiring the customer through marketing, promotion, and added value when inviting a friend or providing limited free services such as Google Drive and ChatGPT, or adding a family member to the monthly subscription, for example.
Converting the customer into an active customer.
Retaining the customer: Building loyalty with the customer through customer care, excellent after-sales services, or earning points.
Growing and increasing customers.
Revenue Streams
For what value are our customers willing to pay? How do they pay? How much does each stream contribute?
Hint: Think about pricing tactics (fixed, dynamic) and the lifetime value of a customer. How will you generate income from each customer segment?
How to obtain revenues:
Percentage of sales.
Advertisements.
Monthly subscription.
Fixed price.
Key Activities
What Key Activities do our Value Propositions, Channels, Customer Relationships, and Revenue Streams require?
Hint: These are the critical actions your company must perform to deliver its value proposition and make the business model work.
What activities are required to:
Build the product.
Establish communication channels.
Build customer relationships.
Collect revenues.
Understanding the previous steps is very important for building, understanding, and developing key activities if one of the previous steps is developed. Example: If self-delivery service is added instead of relying on shipping companies, it is important to add shipping to the key activities and follow up on all logistical points.
Understanding key activities will help us divide activities between key resources and key partners.
Key Resources
What Key Resources do our Value Propositions, Channels, Customer Relationships, and Revenue Streams require?
Hint: These are the most important assets required. They can be tangible (factories) or intangible (patents, knowledge).
What are the key resources you have for:
Building the product.
Establishing communication channels.
Building customer relationships.
Collecting revenues.
What materials do you need to sell your product? Example: website, car with a driver for delivery, server, designers, salespeople…
Key Partnerships
Who are our Key Partners? Key suppliers? Which Key Resources/Activities do partners provide?
Hint: Think about who can help you leverage your business model, reduce risks, or acquire resources. What activities will partners perform, and what resources will they provide?
Resources we do not own or people who do not work for us and we need them.
Example: If we do not own a delivery car and need shipping companies to deal with them, then shipping companies are key partners here.
Another example: I want to create an online store and do not need to build it from scratch but rather subscribe with a provider like Shopify, so Shopify here is a key partner.
Cost Structure
What are the most important costs inherent in our business model? Which Key Resources/Activities are most expensive?
Hint: Costs that remain the same despite the volume of goods or services produced.
Costs are divided as follows:
أهم التكاليف التي سيتم دفعها لبناء المنتج.
تكاليف النشاطات الرئيسية.
تكاليف الموارد الرئيسية.
تكاليف الشركاء.
في قسم التكاليف يجب وضع جميع التكاليف بالتفصيل المتعلقة بالمواد الأساسية والرواتب وغيرها من المصاريف المكتبية والتشغيلية. لذا يجب أن يتم دراسة جميع التكاليف بشكل دقيق لمعرفة إجمالي التكاليف للمنتج ونقارنها مع سعر المنتج في الإيرادات. وعليه فإننا قد نعدل أو ننقل بين الموارد الرئيسية والشركاء.
Hint: Costs that vary proportionally with the volume of goods or services produced.
مثال: كلفة شراء أسطول سيارات ودفع رواتب للسائقين وإصلاح السيارات وتأمين وغيرها من الضرائب قد يكون مكلفًا جدًا. وعليه فمن الأفضل التعامل مع شركاء لنقل البضائع: شركات الشحن. وبالتالي يتم إضافة شركات الشحن كشركاء وإلغاء أسطول السيارات والسائقين من الموارد الرئيسية على الأقل في فترة التأسيس.
Hint: Identify the biggest cost drivers in your business model. Is your model cost-driven or value-driven?
This section will be populated based on the analysis of fixed and variable costs.