Design a clear business structure to diversify your revenue sources and lower your costs while offering a unique customer experience.
A business model is a way we structure our organization to create and deliver value.
Business Models
All companies are made up of processes that must be executed to meet strategic objectives.
However, it is often common to omit the definition of the base structure to understand how to organize resources and plan for the future.
Why is it important to define a business model?
A company is not only composed of the operations necessary to deliver its product or service. In addition to the value proposition and the market segment, a healthy business also takes into consideration a series of key points that guarantee the company's success and survival.
If we do not know how our company works, how will we know how to distribute our efforts? Having a clear understanding of how a business should be structured allows us to understand who is willing to buy our value proposition, what activities we must carry out to make it possible, what resources we must have, how we will communicate it, and how much it will cost us to maintain it.
Business Model Benefits
By itself, simply having a defined business model is a competitive advantage. The benefits that can be gained range from understanding our customers to generating a unique value for them to identify who could be key partners to lower our costs.
Define the ideal customer segment
Customers are the basis of every business and therefore it is necessary to know how to identify, analyze and understand them in order to focus on those who are really looking for our value proposition.
Generate an adequate value proposition
Customers expect a quality product or service, but going beyond and understanding their expectations allows us to exceed them, and understanding their frustrations gives us the opportunity to lessen them to give them a better experience.
Establish appropriate communication channels
Each product or service can reach each customer in different ways, which means that we must know how to generate an appropriate strategy.
Establishing good relationships with customers
Do customers want personalized service or self-service? Do they want digital support or do they need human contact? You have to know how to interpret their wishes in order to offer them what they want.
It covers the four essential areas for any company: customers, products or services, resources and economic viability, therefore, apart from the benefits mentioned above, it also highlights:
Understanding opportunities to generate revenue streams
There is not only one way to sell, understanding this can open doors to diverse revenue streams and also identify opportunities for the future.
Define the key processes and activities to produce the value proposition.
What is the step-by-step I need to follow in order to provide a value proposition? In this way, we can eliminate all the activities that do not add value and incorporate some that we had not contemplated.
Identify the key resources of our business
Who and what do I need to carry out the key processes and activities? In order to plan, we must know what we will need, personnel, time, equipment, technology, among others.
Learning to form strategic alliances
With whom can I form alliances to mutually benefit and improve my service? We may not have all the necessary resources, however, there are other companies that can provide them in exchange for some mutual benefit.
Understanding our cost structure
What is everything that generates costs to cover my processes? Knowing this helps us to be clear about the true cost of our product or service, which we associate directly with the profitability we can achieve.
What is it based on?
Value proposition
Attack a customer problem or need, or create profits for consumers.
Revenue Model
Find one or more sources that generate revenue from the sale of the value proposition.
Value Chain
Determine a competitive advantage with strategic analysis tools.
Inbound Marketing
Become an Inbound Marketing Company
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IMPROVE YOUR CUSTOMER EXPERIENCE STRATEGY
Every company needs a Customer Experience Strategy!
Start with Customer Experience Design as a methodology to improve your processes, business models and value proposition. Once the CX process is defined, automate the process through a Customer Experience Architecture.
