During the 2016 Strategyzer Bootcamp, we were offered the following challenge:
Prototype a new tool that can help practitioners use the customer relationship building block better. We had four days to design, prototype, and deliver a presentation that explains the concept behind the new tool and enforced with a precise case study.
My presentation at the end of the 2016 Strategyzer Bootcamp
Today, after more research and testing, I wanted to share a more expanded view of the concept behind the tool.
The business model canvas is one of the most popular tools we use every day to design and innovate new business models. Perhaps, out of all its nine building blocks, the customer relationship building block is usually overlooked. That most probably happens because many designers are not familiar with what the customer relationship can do.
So what is the customer relationship building block?
It describes how you keep customers and your value proposition connected. And since customer relationship is a function of time vs. value creation, the longer your product/service is hired by your customer, the higher the outcome value. In other words, how you can keep your customer’s jobs connected for the longest time possible with your product/service.
Set The Boundaries Of The Relationship
Define and set three primary parameters:
1.The type of relationship: Should it be a direct or an indirect relationship?
It can range from:
Customers dealing only with you ( your shops, website, app, sales team)
Customers can only deal with you through third parties ( shops, websites, app and sales teams of third parties)
2.The type of bond of the relationship: Should it be a transactional or a longterm relationship? It can range from
The customers are firmly bound to the value proposition
The customers are loosely attached to the value proposition
3.The type of intimacy of the relationship: Should it be an automated or a more personal relationship? It can range from
The customer dealing with the same person every time
The customer interacting with a machine, a bot or help yourself kind of service
And this will help you identify the customer relationship boundaries. Or the why! The reasons why you need this relationship with your customer to be shaped based on all the decisions you have made in your business model.
Engage The Customer
Decide on three dimensions:
How to get customers?
How to keep customers?
And how to grow customers?
This approach is clearly explained in the customer relationship funnel.
Using it will help you decide how best to engage your customer and implement this desired relationship on the ground. In other words, it describes the how!
The Customer Connection Canvas add-on
Now combining The Why with the How creates the “Customer Connection Canvas add-on.”
It is designed to help you figure out the best way to maximize value creation and keeping your products/services hired for the longest possible time by your customer.
The tool will help you to:
Design a market launch strategy.
Develop growth hacking strategies.
Develop online marketing strategies.
How To Use The Canvas Add-On
After defining your value proposition using the value proposition canvas while developing a business model that best protects and scales it.
1. Start by defining the relationship boundaries. Check the implication of your choices on the business model. Understand that this process is iterative and not linear.
2. Once the boundaries are defined in a manner that best serves your business model, follow that with the engagement strategy.
To get a copy of the customer connection canvas add-on, Please go here
Goodwill and Respect