In the Business Model Canvas, the Revenue Streams component encompasses the money that the company generates with each previously defined Customer Segment. But that does not mean the “profit” earned, but the revenue flow involved.
The Customer Relationship block of a Business Model is intrinsically dependent on the first block developed, Customer Segments. This is because this component deals exactly with the type of relationship that the company will establish with each of the previously defined segments.
When designing your Business Model, your first step will be to define the Customer Segments and then the Value Propositions that are in line with this target audience. After this stage, it is time to establish the Distribution Channels, that is, the means by which the company will deliver its value proposition to each customer […]
Developing your Value Proposition should always be the second step in designing a Business Model. This block comes after the Customer Segment, exactly because it depends on the definition of one or more customer groups to make sense.
Customer Segments is the first and most important building block of the Business Model Canvas. So let’s explore what is the customer segments block and why segmentation can be the difference between your canvas’s success or failure.