Issue 1 March 2010
What’s my BMI? © 2010 wearecloudberry.com
Not your body mass index Your Business Model Innovation!!!! Welcome to the first monthly edition of what’s my BMI. In the spirit of innovation, there are a few differences with this ‘newsletter’, namely – • • • •
•
This newsletter is hosted on slideshare It will be hosted on youtube with an audio component. Downstream, we’ll include video. It’s more about ideas than it is about news – news has happened and ideas are yet to be born It will evolve with every edition
Right, let’s get into it – what we’re talking about here is innovating your business model. In edition we’ll focus on one of the nine key building blocks of your business model and we’ll tackle it from 3 angles – • A bit of science – what you need to know about this building block • An example of how another organisation has been innovative in this area • A guide on what to do next This month, we’re talking about customer channels
SOPHIE RUSSELL EDITOR
The 5 Channel phases Awareness – how are we creating awareness (marketing) Evaluation- how do we help our customer assess our value proposition? Purchase – how do we enable our customers to purchase specific products or services? Delivery – not boxes and trucks – how do we deliver on our value proposition? After sales – what do we do after the transaction, to support our customer?
What’s my BMI? © 2010 wearecloudberry.com
What are channels? Channels are the ways that we reach our customer segment. Questions to ask yourself and of your business are –
o Through which channels do our customers want to be reached? o How do we currently connect with our customer and does it match the answer to question 1? o If we know the channels, are they integrated and functioning? o Which are the most cost effective and cost efficient channels we do use or could use? o How, if at all, do we integrate these with our customers routines? Effectively, you’re looking internally at what you’re currently doing and you should look externally to find out what you could be doing. I don’t hold with the philosophy of A,B and C class clients as a rule. If you’ve gone through the exercise of defining your target customer, then you have to ensure that you’re using the best channels
Exercise 1. Identify your top 20 customers, by whatever metric you choose to be important. Consider – 1. Ease of doing business 2. Profitability 3. Lifetime value of the client 4. Referral generation 2. Put them in column one by name and in column 2 rate them from 1-5 on your metrics scale (you can download the sheet from our tool kit on the website) 3. Think hard and establish how the customer found out about you – if you can’t work it out, ask them! 4. Work out approximately what the customer is worth to you per annum. Put the figure in the appropriate column. 5. Now the science – 1. What percentage of your annual turnover do these customers provide? 2. What’s the most effective channel? 3. When did last connect with these customers outside of a business transaction?
What’s my BMI? © 2010 wearecloudberry.com
Innovation : channels Personalised phone application Channel phase : evaluation • • • • • • • • •
Specific to your business Low cost Incorporates maps Include FAQ’s Point to website Viral Makes your business part of the fastest growing industry – apps & gadgets Available for iphone/blackberry/android From as little as $29 pm
Follow our story via the website – www.wearecloudberry.com Skype : andycollyer
What’s my BMI? © 2010 wearecloudberry.com