BMC EXPLAIN

 

Customer Segments

customer segment refers to a group of customers who share similar needs and characteristics, and who are the focus of a business's products or services.

Identifying and understanding customer segments is a crucial part of creating a successful business model. By clearly defining and targeting specific customer segments, a business can better tailor its products or services, marketing efforts, and overall value proposition to meet the needs of those customers.

Value Proposition

Value proposition is that describes the unique benefit that a product or service provides to its customers. It answers the question of "what problem does this product/service solve for the customer, and how does it create value for them?"

A value proposition is a key component of a business model, as it helps to articulate the core value that a business offers to its customers. It is a critical aspect of marketing and sales, as it communicates the benefits of a product or service to potential customers.

A well-crafted value proposition should be clear, concise, and compelling. It should describe the specific benefits that a product or service provides, and it should differentiate it from competitors in the market. A strong value proposition can help to attract and retain customers, and can ultimately drive business growth and profitability.

Channels

Channels are the methods in which the business reaches and interacts with their customers or potential clients to deliver their value propositions.

Since the majority of this company’s business is done online, the channels that they will be mainly using is website page. There, they will have their introduction about the company’s business, what kind of services they provide and the means to communicate further with the company in case there is an interest to the services.

So, in order to have the website page reach to the company’s potential customers, the company will leverage word of mouth from previous customers by encouraging them to leave a review after their purchase and also offers freebies for customers who refer their friends. 

Furthermore, to support the website page, they also have social media platforms that will help build their brand awareness and also a way to drive targeted traffic to their website page.

There are a lot of contents that the company can put into their social media account like Instagram and Facebook. They can opt to put the positive feedbacks from customers as one of their contents, show what type of services they do, as well as a platform for any inquiries related to their business through WhatsApp and Telegram.

Moreover, social media will also act as the medium for any types of customers, either previous customers or potential one, to interacts together and increase the amount of word-of-mouth activities done. That way, the company can increase their audiences as social media platform are common to have for everybody making the audiences easy to reach the company’s account. 

In the future, after the company have gain a significant number of audiences and clients, they are planning to have online advertising to increase their reach to potential customers that they never reached before. This includes the likes of Google Ads, Facebook Ads, YouTube Ads, Instagram Story Ads and so on.

Customer Relationships

Customer relationships refer to the interactions and connections that a business has with its customers. It is a crucial element of a business model, as strong customer relationships can help to build loyalty, increase customer satisfaction, and drive sales.

There are many different types of customer relationships that businesses can develop, depending on their specific goals and strategies

Revenue Streams

Revenue streams refer to the sources of income that a business generates from selling its products or services. In other words, revenue streams are the ways in which a business earns money.

There are many different types of revenue streams that a business can have, depending on its business model and industry.

Key Resources

Key resources refer to the strategic assets, capabilities, and resources that a business requires to create and deliver its value proposition. They are the resources that a business relies on to operate and compete in its industry.

Key resources can take many forms, depending on the nature of the business and its industry. 

Key Activities

Key activities refer to the essential tasks, processes, and operations that a business must perform in order to create and deliver its value proposition. They are the activities that a business undertakes to achieve its strategic goals and objectives.

Key activities can take many forms, depending on the nature of the business and its industry. 

Key Partners

Key partners refer to the external entities that a business collaborates with to create and deliver its value proposition. They are the businesses or organizations that a company works with to leverage their expertise, resources, and capabilities.

Key partners can take many forms, depending on the nature of the business and its industry. 

Cost Structure

cost structure refers to the various costs a company incurs in order to operate its business and create value for its customers. It is one of the nine building blocks of the BMC, which is a strategic tool used by businesses to describe, design, and analyze their business models.

The cost structure of a business includes both fixed and variable costs. Fixed costs are expenses that remain the same regardless of the level of output or sales, such as rent, salaries, and insurance. Variable costs, on the other hand, are expenses that vary with the level of output or sales, such as raw materials, direct labor, and shipping costs.

By understanding its cost structure, a company can identify opportunities to reduce costs, increase efficiency, and improve profitability. In addition, a company can use its cost structure to make strategic decisions, such as pricing its products or services, selecting suppliers, and entering new markets.