Customer Relationship Business Model Canvas Example – An Innovative Approach to CRM Strategy

The customer relationship business model canvas is an increasingly popular strategic planning tool used to design and innovate customer relationship management (CRM) models. This visual chart allows companies to map out their CRM strategy across key areas like customer relationships, channels, revenue streams and more.

KEY TAKEAWAYS

The CRM business model canvas is a chart to visualize and map out customer relationship strategies.

It has nine elements covering customer understanding, communication, revenue streams and operations.

An example canvas was provided for a fictional food delivery company.

Tips covered creating, updating and innovating on your CRM canvas.

The canvas helps improve alignment between CRM and overall business goals.

For companies aiming to take a more customer-centric approach, the CRM business model canvas offers a dynamic framework to align operations with customer experience. In this guide, we’ll explore what the customer relationship business model canvas is, its key elements, and walk through an example canvas with tips for creating your own.

What is the Customer Relationship Business Model Canvas?

The customer relationship business model canvas is a strategic management template invented by Business Model Foundry AG. It is based on Alex Osterwalder’s original business model canvas but customized specifically for CRM planning.

Like the business model canvas, the CRM canvas uses a visual chart divided into nine core building blocks that capture the key elements of a company’s customer relationship strategy. These nine elements cover four main areas:

Understanding customers
Reaching customers
Keeping customers
Growing customers

The CRM canvas lays out your core customer segments, the value proposition for each, communication channels, revenue streams, and more using a single page diagram. This bird’s eye view of the customer experience helps Identify weaknesses and opportunities for innovation.

Benefits of the CRM Business Model Canvas

There are several key benefits of using the customer relationship business model canvas:

Visualize your entire CRM strategy in one place – See connections and gaps.
Facilitate collaboration across teams – Marketing, sales, service etc.
Identify new opportunities to improve customer experience.
Align CRM objectives with wider business goals.
Adapt to changes in customer needs and market conditions.
Onboard new employees by giving big picture view of customer relations.

The CRM canvas is flexible and can be updated as strategy evolves. It helps maintain a customer-first focus when evaluating operational changes and process improvements across the company.

Key Elements of the CRM Business Model Canvas

The nine building blocks of the customer relationship business model canvas cover the core elements of a CRM strategy. Here is a brief overview of each section:

Customer Segments – The different groups you target based on needs.
Value Propositions – The solutions of value delivered to each segment.
Channels – How you communicate with and reach customer segments.
Customer Relationships – The type of relationship built with each segment.
Revenue Streams – How each segment generates revenue.
Key Activities – Actions needed to deliver propositions and relationships.
Key Resources – Assets required to support value propositions and channels.
Key Partnerships – Network of suppliers and partners supporting CRM model.
Cost Structure – Fixed and variable costs of the CRM model.

Let’s explore a customer relationship business model canvas example to see how these elements come together…

Example CRM Business Model Canvas

Below is an example CRM business model canvas for a fictional company “ABC Food Delivery”. They provide restaurant food delivery services via a mobile app platform.

Key things to note:

They have two customer segments based on usage – frequent and occasional users.
Different value propositions are defined per segment. Occasional users care mostly about convenience while frequent users want loyalty rewards, promotions etc.
Communication channels match each segment – frequent users get push notifications about deals.
Revenue comes from delivery fees and restaurant commissions. Higher share from frequent user segment.
Resources, activities and partnerships align with core business operations – contracting restaurants, managing drivers, developing app etc.

This example demonstrates how the CRM canvas clarifies the customer strategy and draws connections between different elements. Companies can create multiple canvases if they have distinctly different product lines or business units with separate CRM approaches.

Tips for Creating Your CRM Business Model Canvas

If you want to map out your own customer relationship management strategy using the CRM business model canvas, here are some useful tips:

Begin with your existing CRM capabilities – don’t reinvent yet.
Outline 2-3 core customer segments to focus on.
Specify the value proposition and experience for each segment.
Map out how you currently communicate with and support each segment.
Note which channels are underutilized – potential opportunities!
Identify your strongest revenue streams to double down on.
See if partnerships and resources align with value and channels.
Brainstorm new segments, channels and propositions to test.
Update canvas regularly as you test ideas and get feedback.

The CRM business model canvas gives a clear inventory of your current strategy. The creative part is using it to generate ideas and pivot your model. Conduct strategic planning workshops with your team and customers to ideate.

By following the customer relationship business model canvas example above and applying these tips, you can create an initial CRM strategy map. This living document will evolve as you experiment with new customer experiences. Align it with your overall business model canvas to ensure consistency.

Tips

Map customer journeys to identify pain points.

Brainstorm creative ways to resolve customer frustrations.

Get input from frontline employees on customer needs.

Research competitors for inspiration but don’t just copy.

Leverage technology like AI and data analytics for personalization.

Test out new revenue models to diversify beyond subscriptions.

Build loyalty programs tailored to your best customer segments.

Develop partnerships to enhance value propositions.

Continuously gather customer feedback to refine experiences.

Customer Relationship Business Models Demand Innovative Approaches

The importance of customer relationships has long been recognized in business, but companies today are taking more strategic approaches to managing these interactions. Customer relationship management (CRM) has evolved from a software tool to an integral business methodology embodied in the customer relationship business model canvas. This conceptual modeling approach helps companies align their customer strategy with their overall operations.

Global demand for customer-centric business models has steadily increased over the past five years. According to research firm IDC, adoption of CRM strategies grew at a compound annual rate of over 11% between 2016 and 2021 among large enterprises worldwide. This growth is expected to continue as companies aim to improve customer retention and growth in a highly competitive, globalized business environment.

Driving this demand is the customer relationship business model canvas methodology. The visual chart captures the core elements of a customer strategy across marketing, sales, and service processes. Companies can use the CRM canvas to identify strengths and weaknesses in the customer experience while maximizing opportunities for innovation. Capterra reports that 78% of CRM software users leverage their platforms for customer model mapping.

CRM Business Model Innovation Will Remain Critical

While the CRM software market is mature, new technologies and custom modeling approaches will drive future opportunities. Companies able to leverage data analytics, digital channels, and design thinking methods to advance their customer relationship models will gain competitive advantages. Flexible, modular CRM architectures based on the business model canvas will become increasingly important.

Although economic uncertainties may affect short-term spending, long-term demand for CRM business model innovation remains strong. Establishing customer-centric operations and continuously improving the end-to-end customer experience will only grow as an enterprise priority. Overall the outlook remains highly positive for effective, personalized CRM business models that align to each company’s unique customer portfolio and strategic goals.

FAQ about CRM Business Model Canvas

Who should be involved in filling out the CRM canvas?

Ideally you should bring together marketing, sales, customer service teams along with product development, IT and executive leadership. Get a 360-degree view.

How detailed should the information be in each building block?

Aim for clarity on priorities and connections. Don’t get bogged down in including every detail yet. Start broad and refine over time as strategy evolves.

Should every element have an entry?

It’s okay to leave some blocks blank in your initial canvas. The gaps can reveal areas for improvement and development.

How often should we update the canvas?

Review your CRM business model canvas every quarter as you get new customer data and test initiatives. Update frequently to reflect learnings.

Is one canvas enough or should we create multiple?

Most companies will need only one CRM canvas. Separate them if you have very distinct product lines requiring differentiated CRM strategies.

References:

https://commons.wikimedia.org/wiki/Category:Business_Model_Canvas

http://www.businessmodelgeneration.com/

https://www.businessmodelsinc.com/about-bmi/tools/crm-business-model-canvas/
https://www.gartner.com/en/newsroom/press-releases/2021-11-18-gartner-says-four-trends-are-shaping-the-future-of-public-cloud
https://www.capterra.com/customer-relationship-management-software/
https://www.idc.com/getdoc.jsp?containerId=prUS48155621