By David Tomas, on 27 December 2022
Did you know that most companies have to close in the first years? It’s not for lack of demand or because their idea does not work, but often because they do not have a good business plan. Growing a business is not easy and organization and planning are two key pillars of success.
However, this is not something that happens only when creating a business model, it also happens to companies when they want to implement their own marketing plan because, in the field of marketing, strategy is key. Many companies fail because they do not know the Canvas model, which can be applied both to creating a business plan and to developing a successful marketing strategy.
What Is the Business Model Canvas
The Business Model Canvas is a visual tool that allows you to pinpoint the key elements of your business and organize your ideas in order to properly plan your business model and your marketing strategy. It facilitates good planning and is designed with the objective of creating value for consumers.
The Business Model Canvas was devised in 2011 by Yves Pigneur, professor of management and information systems, and Alexander Osterwalder, a business consultant.
It is a simple model that can be easily implemented thanks to the fact that it consists of a template with just 9 elements, which represent the basic divisions of an organization. Thanks to this type of structure, the Business Model Canvas provides a clear idea of the project at a glance.
To use this model, just fill in each of the 9 blocks in a clear way. At the beginning, you may find it difficult to complete some of them, but don't let that stop you because it will be a great help in the end.
Elements of the Business Model Canvas
Value proposition: this is one of the most important parts, so we advise you to make it the first step in your Business Model Canvas. In this box, you should indicate the reason why the public is going to buy your products or services. The rest of the elements and all your digital marketing objectives will revolve around this. The best way to complete this quadrant is to put yourself in the shoes of your potential customers, understand their needs, and indicate how your products or services can meet them.
Customer segments: it is time to define your buyer persona, i.e. your ideal customer. List all their characteristics, needs, pain points, life and buying habits, behavior, etc. The more specific you are, the better results you will get.
Channels: how are you going to connect with your ideal customer? This is what you will have to specify in this quadrant. Define each and every one of the channels through which you are going to reach them, including those involved in the sales process. A good idea is to make a subdivision and separate those channels that are digital from those that are not.
Customer relationships: once you have defined the channels, it is time to make it clear how you will use them to communicate with your customers and what kind of relationship you want to create.
Revenue streams: what is your main source of income? How will you monetize your project? How will your customers pay you? These are some of the questions you should answer in this section.
Key activities: the value proposition is already clear, since it is the first step in the Business Model Canvas, but now it is time to specify how it will be executed. What steps are you going to take to transmit that value? Record the tasks that need to be done and who should do them.
Key resources: in all marketing models it is important to make clear what resources are available and how to optimize them. This includes economic, human, intellectual, and physical resources.
Key partnerships: in business, lone wolves don’t tend to get very far, so it is essential to establish who your partners are and what alliances you are going to build.
Cost: here you need to consider what the essential expenses are and which ones are secondary. If you need to modify any of the previous points of the Business Model Canvas, don’t hesitate to do so.
What Is the Business Model Canvas Used For?
To know the ideal way to get your products and services to your audience.
To avoid beating around the bush and to prioritize.
To increase your chances of success.
To organize every step you take and move forward with a solid foundation.
To explore all possibilities and choose the best ones before you start.
Example of a Business Model Canvas
Netflix is a clear example of a well-developed Business Model Canvas. The streaming platform has shown that, with well-structured organization, you can create an innovative strategy and achieve unprecedented success. Below we leave you a Canvas model of how Netflix surely designed its digital marketing model and gained a huge clientele willing to pay monthly for their service.
Fuente: Innovation Tactics