7 Steps to Build Customer Relationships with Business Model Canvas

The business model canvas is a tool that helps entrepreneurs and innovators design and test their business ideas. It is a visual chart that describes the key elements of a business, such as the value proposition, customer segments, channels, revenue streams, cost structure, and key resources. By using the business model canvas, you can create a clear and concise overview of your business idea and communicate it effectively to others.

Key Takeaways

The business model canvas is a tool that helps you design and test your business idea.

Building customer relationships is essential for your success.

You can use the business model canvas to build customer relationships by following 7 steps: identify your customer segments; define your value proposition; choose your channels; establish your revenue streams; optimize your cost structure; leverage your key resources; and coordinate your key activities.

You should test your assumptions and validate your ideas with real customers.

One of the most important aspects of any business is the relationship with the customers. Customers are the ones who pay for your products or services, provide feedback, and spread the word about your brand. Therefore, building strong and lasting customer relationships is essential for your success.

But how can you use the business model canvas to build customer relationships? In this article, we will show you how to use the canvas to understand your customers better, deliver value to them, and create loyalty and trust. Here are the 7 steps to follow:

1. Identify your customer segments.

The first step is to define who your customers are and what they need or want from you. You can use the customer segment block of the canvas to list the different groups of people or organizations that you aim to serve. For each segment, you should also identify their characteristics, needs, problems, preferences, and behaviors.

2. Define your value proposition.

The next step is to describe how you create value for each customer segment. You can use the value proposition block of the canvas to outline the benefits that you offer to your customers, such as solving their problems, satisfying their needs, or improving their situation. You should also highlight what makes you different from your competitors and why customers should choose you over them.

3. Choose your channels.

The third step is to decide how you will reach your customers and deliver your value proposition to them. You can use the channel block of the canvas to list the different ways that you will communicate with your customers, such as websites, social media, email, phone, or physical locations. You should also consider how you will raise awareness, educate, persuade, sell, and deliver your products or services to your customers.

4. Establish your revenue streams.

The fourth step is to determine how you will generate income from your customers. You can use the revenue stream block of the canvas to identify the different sources of revenue that you will have, such as sales, subscriptions, advertising, or commissions. You should also specify how much each customer segment is willing to pay for your value proposition and how often they will pay.

5. Optimize your cost structure.

The fifth step is to minimize the costs that are associated with creating and delivering your value proposition. You can use the cost structure block of the canvas to list the main expenses that you will incur, such as materials, labor, rent, utilities, or marketing. You should also try to reduce or eliminate any unnecessary or inefficient costs that do not contribute to creating value for your customers.

6. Leverage your key resources.

The sixth step is to utilize the assets that are essential for your business model to work. You can use the key resource block of the canvas to list the physical, intellectual, human, or financial resources that you need to create and deliver your value proposition, such as equipment, patents, skills, or capital. You should also try to acquire or access any resources that you lack or need more of.

7. Coordinate your key activities.

The seventh and final step is to perform the tasks that are required for your business model to function. You can use the key activity block of the canvas to list the main actions that you need to take to create and deliver your value proposition, such as designing, producing, distributing, or servicing your products or services. You should also try to improve or streamline any activities that are inefficient or ineffective.

By following these 7 steps, you can use the business model canvas to build customer relationships that are based on understanding their needs, delivering value to them, and creating loyalty and trust.

Tip

To use the business model canvas effectively, you should test your assumptions and validate your ideas with real customers.

Statistical Report on Customer Relationship in Business Model Canvas

Customer relationship is one of the key components of the business model canvas, which describes how a company interacts with its customers and creates value for them. Customer relationship can have different types and motivations, depending on the customer segment, the product or service offered, and the market context. In this report, we will present an example of customer relationship in the business model canvas and analyze how it affects the global demand in this industry.

Example: StreamFlix

StreamFlix is a subscription-based streaming service that provides personalized content recommendations based on each user’s viewing history and preferences. StreamFlix maintains a strong customer relationship by offering a high-quality user experience, a large and diverse content library, and a flexible pricing plan. StreamFlix’s customer relationship can be categorized as a combination of self-service, automated service, and communities.

Self-service: StreamFlix allows users to access its platform anytime and anywhere, without requiring any human intervention. Users can manage their own accounts, preferences, and subscriptions through the website or the app.

Automated service: StreamFlix uses algorithms and artificial intelligence to analyze user behavior and provide tailored suggestions for what to watch next. StreamFlix also sends personalized notifications and emails to users to keep them engaged and informed about new releases and promotions.

Communities: StreamFlix fosters a sense of belonging among its users by creating online forums, groups, and social media pages where they can interact with each other, share opinions, reviews, and feedback, and participate in contests and events.

Global Demand Analysis

StreamFlix’s customer relationship strategy has contributed to its success and growth in the global market. According to a recent report by Statista, StreamFlix had over 200 million paid subscribers worldwide as of December 2020, up from 167 million in December 2019. StreamFlix’s revenue also increased by 24% year-over-year, reaching 25 billion US dollars in 2020.

StreamFlix’s customer relationship has helped it to achieve a high level of customer satisfaction, loyalty, and retention. According to a survey by Hub Entertainment Research, StreamFlix was rated as the most satisfying streaming service among US consumers in 2020, with a score of 8.4 out of 10. StreamFlix also had the lowest churn rate among streaming services, with only 9% of subscribers canceling their subscription in 2020.

StreamFlix’s customer relationship has also enabled it to attract new customers and expand its market share. StreamFlix has invested heavily in producing original and exclusive content that appeals to different audiences and regions. StreamFlix has also partnered with local distributors and telecom operators to offer bundled packages and discounts to potential customers. StreamFlix has also leveraged its communities to generate word-of-mouth referrals and viral marketing campaigns.

In conclusion, customer relationship is a vital element of the business model canvas that can influence the performance and growth of a company in the global market. StreamFlix is an example of a company that has built a strong customer relationship with its customers by providing them with a personalized, convenient, and engaging streaming service. StreamFlix’s customer relationship has resulted in increased customer satisfaction, loyalty, retention, acquisition, and revenue.

Frequently Asked Questions

Q: What is the business model canvas?
A: The business model canvas is a tool that helps entrepreneurs and innovators design and test their business ideas. It is a visual chart that describes the key elements of a business.

Q: Why is building customer relationships important?
A: Building customer relationships is important because customers are the ones who pay for your products or services, provide feedback, and spread the word about your brand.

Q: How can I use the business model canvas to build customer relationships?
A: You can use the business model canvas to build customer relationships by following these 7 steps: identify your customer segments; define your value proposition; choose your channels; establish your revenue streams; optimize your cost structure; leverage your key resources; and coordinate your key activities.

Q: What are some examples of customer segments?
A: Some examples of customer segments are: young professionals, parents, students, seniors, businesses, or nonprofits.

Q: What are some examples of value propositions?
A: Some examples of value propositions are: convenience, quality, affordability, customization, or social impact.

References:

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

http://www.businessmodelgeneration.com/

https://www.strategyzer.com/canvas/business-model-canvas

https://blog.hubspot.com/sales/business-model-canvas