I have been asked recently how a business model can be involved in marketing and why I use a business model canvas when working with my marketing clients.
Since I feel it is a really important, intricate part I wanted to show you why.
Business model canvas
- Customer Segments
- Value Propositions
- Customer Relationships
- Revenue Streams
- Cost Structure
- Key Activities
- Key Resources
- Key Partners
And yes, I did put them in this order for a reason. Most of the time this is the order in which I will go through the canvas to help you see what you are doing and where you might need improvement.
So what does these parts stand for?
- Customer Segments – Well I hope you know this one. These are your ideal customers, if needed divided into groups.
- Value Propositions – What do you offer? What is your USP?
- Channels – How do you connect with your ideal customer. There are 5 moments for which you need channels.
- Customer Relationships – What kind of relationships do you build with your customer?
- Revenue Streams – How will you get your income? How much?
- Cost Structure – What does it cost to keep the business alive?
- Key Activities – What activities are the most important part of your business? Without which activities wouldn’t your business exist?
- Key Resources – Who and what is important for your business?
- Key Partners – Who do you need to work together with to be able to do your key activities?
By making sure all these elements of the business model canvas are worked out properly you are certain you have a good, viable business mode.
How it helps your marketing
As you might see some parts in the business model canvas are also very important for your marketing plan. Customer Segments are your ideal customers and therefor your whole plan revolves around them. Value Propositions show you were you are good at, and how you can stand out of the crowd. Channels are how you communicate and Revenue Stream are how your products are priced.
In your business model you can make sure that you have enough different products to cater to the needs of your customer segments. You can make sure they can get to know you better before buying an expensive product by not only having great communication channels beforehand but also having some ‘starter products’ for people who are on the fench.
By working out your business model first you not only have a viable business that is worth marketing, you also have already done half the work for your marketing plan!
Want to know more about this canvas and how it works within my 5 step signature system to simplify your marketing? Sign up for my webinar that is happening THIS afternoon.