Customer Segments (目標客層)
Value Propositions (價值主張)
Some value propositions satisfy an entirely new set of needs that customers previously didn’t perceive because there was no similar offering. This is often, but not always, technology related. Examples of new value propositions include cell phones and ethical investment funds.
Improving product or service performance is a common way to create value for customers. Think PCs and cameras, which are continually being made faster and more capable. As Clayton Christensen points out in his seminal book, the Innovator’s Dilemma, too often companies follow this method of value creation so blindly that eventually their products and services exceed the needs of their customers – making it harder to justify price increases and opening up yawning chasms of opportunity for low-cost, adequate offerings from new-to-market entrants.
“Tailoring products and services to the specific needs of individual customers or customer segments creates value. In recent year,s the concepts of mass customization and customer co-creation have gained importance. This approach allows for customized products and services, while still taking advantage of economies of scale.”
"Getting the Job done":
Value can be created simply by helping a customer get jobs done. The authors use the example of Rolls-Royce, which not only manufactures jet engines for commercial aircraft, but also services them – freeing the airlines to focus on what they do best. Again, Christensen spends a lot of time in his books talking about JTBD – jobs to be done. Sometimes companies get so focused upon improving their products as an end unto itself that they lose track of the key tasks the customer needs to get done, the problems they need to solve.
This element of value creation is hard to quantify, but is becoming increasingly important. In consumer markets, design can be a very important part of the value proposition. Think Apple’s elegant iPhone, the fashion industry and automotive design, which appeals to customers at a more visceral level.
Customers may find value in the simple act of using or displaying a specific brand. For example, wearing a Rolex watch or driving a Mercedes signfies wealth, and teens often have “in” brands that they must wear in order to be cool.
Offering similar value at a lower price is a common way to satisfy the needs of price-sensitive customer segments. For example, no-frills airlines such as Southwest, Ryanair and easyJet have designed their entire business models around providing low-cost air travel. Another example cited by the authors is the growing popularity of free offers for various products and services. Another possibility is innovative pricing models, such as micro-financing.
“Helping customers to reduce costs is an important way to create value. Salesforce.com, for example, sells a hosted Customer Relationship Managment (CRM) application. This relieves buyers from the expense and trouble of having to buy, install and manage CRM software themselves.”
Customers value reducing the risks they incur when purchasing products or services. For example, at the beginning of the global recession, Hyundai made a pioneering offer to its U.S. customers: If you purchase a new Hyundai and subsequently lose your job, we’ll buy the car back from you. Not surprisingly, this program was a huge success for the Korean car manufacturer.
(這個厲害= = )
“Making products and services available to customers who previously lacked access to them is another way to create value. This can result from business model innovation, new technologies or a combination of both. NetJets, for example, popularized the concept of fractional jet ownership. Using an innovative business model, NetJets offers individuals and corporations access to private jets, a service previously unaffordable to most customers. Mutual funds provide another example pf value creation through increased accessibility. This innovative financial product made it possible for even those with modest wealth to build diversified investment portfolios.”
“Making things more convenient or easier to use can create substantial value. With iPod and iTunes, Apple offered customers unprecedented convenience searching, buying, downloading and listening to digital music. It now dominates the market.”
Customer Relationship (顧客關係)
Category 1: Personal assistance
This type of customer relationship is characterized by the human touch. Customers have the opportunity to interact with a sales representative while they are making their purchase decision or with a customer services representative for after sales services.
Category 2: Dedicated personal assistance
This type of relationship takes personal assistance to the next level by assigning dedicated customer care representatives to the customer. This kind of relationship takes some time and finesse to develop and is characterized by the representative knowing traits of the customer that he uses to customize the customer experience with the company. Banks will often assign a single point of contact to important customers with long-standing relationship with the bank and a high net worth.
Category 3: Self-service
The Do It Yourself model has been getting more and more popular as organizations seek cost cutting measures that will reflect in the prices given to customers. In this kind of relationship, the company provides all the tools a customer needs to service themselves.
Category 4: Automated services
Automated services are the next level of self-service by providing machinery and processes that increase the convenience for customers to perform services themselves. These kinds of services are usually much more customized and use a customer’s online and buying behavior to create a profile that is then used to provide suggestions to the customer to enhance his/ her shopping experience. Hence, automated services in many ways can be likened to personal assistance because of the customization that goes into the experience.
Category 5: Communities
In today’s social media driven environment, communities are a wonderful way for companies to understand their consumers, get insights into their habits, perspectives and create a platform in which customers can get together and share knowledge and experiences. In this way, not only does the company form a personal relationship with its customers, but these bonds are strengthened by the additional relationships customers form with one another. Glaxo SmithKline is an example of this kind of a relationship. When the company launched a new weight-loss drug, it gave customers a platform to form communities that helped it understand the problems that overweight people face as well as.
Category 6: Co-creation(web2.0)
Companies are increasingly changing the nature of the customer relationship by involving them in the design and even creation of the end product. This gives customers greater ownership over the product and service and often results in the creation of product or brand champions in the market. Amazon encourages customers to publish their book reviews on the web-site so readers can find people with similar tastes and evaluate what they thought of particular books before making purchase decisions. YouTube depends entirely on its customers to create the content that enables the website to boast being the largest video sharing website in the world.
- 我們是如何整合目前的通路的, 整合得如何?
- 如何將通路和客戶的行為整合?(原文是customer routines, 不確定翻成這樣對不對...)
Phase 1: Awareness
How do we educate customers about the characteristics of the products and services we have? This is the marketing and advertising phase. It is how you let your customer know about your value proposition.
Phase 2: Evaluation
How can we aid customers in evaluating our Value Proposition? This is the promotion or ‘Try me before you buy me’ phase. The customer will evaluate, read about or use your product and form an opinion about it. A good company will educate customers with other competitors in the market and help them to evaluate their choices. In this way, you make your value proposition clearer to them and why you are a better option than your competitors.
Phase 3: Purchase
How can we help customers in buying their preferred product or service? This is the sales process and denoted the dollars exchanged for a particular goods and services.
Phase 4: Delivery
How do we deliver the promised value proposition to the customer? This is the fulfillment stage and defines how the product will reach the customer.
Phase 5: After Sales
How can we provide After Sales customer care and support? This phase creates Advocates for your products and services amongst your target segment. This stage provides a person for the customer to call when they have a problem or question about the product. The higher the value of the product, the more likely it is that he/ she will require After Sales support.
Revenue Streams 收益流
WAYS TO GENERATE REVENUE STREAM
- Asset sale(實體商品的所有權轉移)
This kind of sale refers to the transfer of ownership rights of a physical product from the seller to the buyer. At Amazon.com ownership rights of a myriad of products such as books, music and electronics are sold to the buyers. Similarly, Honda sells the ownership rights of the cars it manufactures to the buyers after which the buyer has complete freedom to rent out, use or even total the car.
- Usage fee(使用費, 如理髮, 網路)
This kind of fee is usually charged by service providers to customers for the use of the service. Hence, an internet provider will probably charge a customer for using their line for a certain number of minutes during the day or month. A beautician may charge her customer according to the number and nature of treatments the customer undergoes while under her care.
- Subscription fees(健身房會員)
When a user requires long-term or continuous access to the products of a company, they pay a subscription fee. Hence, a gym may sell a yearly membership subscription to its customer. Cable providers may charge a subscription fee to its users based on the time for which they will pay upfront.
- Lending/ renting/ leasing(租車之類的服務)
Some organizations provide their customers with exclusive rights to their product for a limited amount of time for a set fee. Upon the end of this period, the organization regains ownership of the product. This kind of revenue model represents a number of advantages both for the company and the customer. The company enjoys recurring revenue from the customer for the mentioned period. On the other end of the coin, the customer has exclusive access to the product for the time he/ she require it without having to make a hefty investment. Hence, zipcar.com a popular car renting service in North America allows customers to rent their cars for a specified time period. This has become a very popular service in the cities it is available because it provides customers with the advantage of a car, without having to invest in buying one.
- Licensing(如windows, office)
Licensing is generally used when we are talking about products, services or ideas that fall under the parameter of intellectual property. This opens up a revenue stream for rights holders, who would otherwise have had to invest in manufacturing as well. It is common in the Technology industry for patent holders to license the use of patents to other companies and to charge a licensing fee for it.
- Brokerage fee(104, airbnb)
When a company acts as an intermediary to ease the communication and transaction between two or more parties, they charge a brokerage fee. An example of this is when a headhunting firm matches a candidate to an organization looking for a particular skill set. The firm usually charges a percentage of the gross salary from the organization, the candidate or both.
Companies that earn a fee through promoting another organization, product or service, charge an advertising fee for their service. Traditionally this kind of revenue was common only in the advertising industry. However, in recent times, with the boom of the internet and e-commerce, many websites are also using this as a main revenue stream.
Pricing mechanisms refer to the effect of the pricing of a product on its expected demand and supply. This is essentially a tool to match buyers to the sellers of a product. Each revenue stream in a business can have its individual pricing mechanism. The pricing mechanism selected has a significant impact on the revenues generated by the revenue stream in question. Pricing mechanisms can be divided into two types; a) fixed pricing and b) dynamic pricing.
- Fixed Pricing
This kind of pricing, as the name suggests, remains uniform due to the lack of variability in the inputs that go into the product.
- Fixed List Pricing(製造商議定價目)
Fixed list pricing is the pricing mentioned by the manufacturer for a product, service or value proposition of an organization.
- Product feature dependent(根據產品某幾項功能定價)
When a product has a number of value propositions important to the customer, it may be priced according to the amount of such features.
- Customer segment dependent(根據客戶特點調整價格)
This kind of pricing takes the target customer segment and their various traits into account.
- Volume dependent(買越多越便宜)
As the name suggests, the more quantity a customer purchases, typically the lower the price will be.
- Dynamic Pricing
This type of pricing changes according to the variables that go into the product as well as the conditions prevalent in the market.
- Bargaining (共同議價)
This refers to when a price is negotiated between two or more parties. The outcome of the negotiation is dependent on who holds the power at the negotiation table as well as the relative skills of the parties involved.
In this kind of dynamic pricing, the final price is dependent on the customers and their perception of the worth of the value the product or service holds. Usually, the product or service, goes through a process called bidding where target customers share what they are willing to pay for the product or service. The customer proposing the highest price gets the product or service.
- Yield Management (限時優惠)
In yield management, the price is completely dependent on inventory and the time of purchase. It is a kind of variable pricing where the product or service has a time limit on it, and companies use customer intelligence to create revenues. Airlines and hotels are the most common adopters of this pricing model.
- Real-time market(供需, 如石油)
In this kind of pricing, the onus of responsibility goes to the supply and demand for a particular product. The price keeps fluctuating depending on how much customers want the product and how much is available to sell.
- 我們的分銷渠道需要哪些關鍵活動? link
These activities are generally a characteristic of manufacturing firms and entail the design, creation and delivery of significant quantities of the product.
For a company that manufactures and sells pantyhose, typical value propositions are listed below;
This pantyhose lasts longer and, therefore, saves consumers the money they would spend on frequent replacements.
It provides resistance, so feet don’t slip in heels.
The product is machine washable.
Easy to store packaging.
The Key activities would then be;
- Control of production and manufacturing;
- Manage website, online orders and the distribution of the product;
- Create a branding strategy;
- Marketing and promotion of the product;
- Product and packaging design. ##Problem-solving
Some consumers or customers have chronic problems. Organizations that list problem-solving as a main activity are usually aiming to find unique solutions to these individual problems. Consultancies, hospitals, and most service organizations typically are trying to solve customer problems uniquely. These organizations are characterized by lots of knowledge management and a focus on continuous learning.
Jiffy Lube is a chain of over 200 businesses in North America which offers oil change and other automotive services to its clientele. Hence, it is a service firm that aims to provide a solution to a recurring problem its target customers may have. Jiffy’s value propositions are:
Keep cars healthy;
Keep clothes clean and garages tidy;
Save customers’ time and help them avoid the hassle of their cars breaking down.
Based on these, the key activities performed at Jiffy can be as follows;
- Change the oil of cars;
- Perform other maintenance work;
- Promote their services to customers through upselling and other marketing activities.
- Such organizations will have detailed records on repair work done on the automobiles of their repeat customers and will be able to handle the car with full knowledge of its history, much like a doctor with a regular patient.
A business model where the platform is a key resource usually has platform or network-related key activities. Networks, brands, and software can all be a part of a platform or network-related business.
Agile Enterprise Architecture or AEA offers its services to companies experiencing a surge of work or a cascade of models that need to be done within a limited amount of time. The company’s value propositions are as follows;
Low-cost architecture modeling;
Agile and available when needed by customers;
In the cloud;
Its environmentally friendly especially if the client company is willing to forego travel;
Efficient and effective;
Involves minimal risk.
Based on these the key activities for this organization are;
- Cloud-based architectural modeling as a service;
- Cloud-based enterprise architecture software as a service;
- Frequent health checks for the architecture to make sure it remains robust with changing environment.
- 我們的分銷渠道需要哪些關鍵資源? link
- Physical resources
Physical assets are tangible resources that a company uses to create its value proposition. These could include equipment, inventory, buildings, manufacturing plants and distribution networks that enable the business to function.
A microchip manufacturing company like Intel needs semi-conductor plants as a key resource and without adequate infrastructure available, the organization will fail to innovate and keep up with its business customer demands and needs.
- Intellectual resources
These are non-physical, intangible resources like brand, patents, IP, copyrights, and even partnerships. Customer lists, customer knowledge, and even your own people, represent a form of intellectual resource. Intellectual resources take a great deal of time and expenditure to develop. But once developed, they can offer unique advantages to the company. Nike and Sony are heavily dependent on their brand to sell their products to a customer segment that is devoted to the brand. Similarly, Microsoft and Adobe rely on software that have been tweaked and perfected over years of trial and error. Some businesses have very strong intellectual resources. Google is currently buying a patent library from Nortel to boost up its intellectual resources.
From the years 2000 and 2012, companies have increasingly realized the significance of intellectual resources. This can be seen through the visible increase in patents being filed in the United States. The number of patents filed by Google between 2011 and 2012 grew by 170%. Apple’s patents grew by 68% in the same time period. Hence, companies have started to see patents as a major driver of their business and growth.
- Human resources
Employees are often the most important and yet the most easily overlooked assets of an organization. Specifically for companies in the service industries or require a great deal of creativity and an extensive knowledge pool, human resources such as customer service representatives, software engineers or scientists are pivotal.
FedEx truck drivers are the human resources that combine with the physical resource, such as the trucks to create deliver the product to FedEx customers and create the signature FedEx experience. Novartis, the pharmaceutical giant, is highly dependent on its team of top scientists, as well as its highly qualified sales force to create and sell its medicines to doctors. Similarly, UBS Wealth Management is one of the premier banks in the world, but without its team of refined and knowledgeable bankers, UBS would fail to garner the same customer reviews and satisfaction as it does currently.
- Financial resources
The financial resource includes cash, lines of credit and the ability to have stock option plans for employees. All businesses have key resources in finance, but some will have stronger financial resources than other, such as banks that are based entirely on the availability of this key resource. Similarly, China Life insurance sells insurance to its wide customer base. However, if China Life Insurance does not have sufficient capital to cover insurance claims, it will not be able to survive in the market.
For a car manufacturer, the physical resources are in the facilities such as assembly robots. Another key resource could be intellectual property such as patents and even customer intelligence. The latter would come in very handy specifically knowing their preferences when you want to offer repeat customers special discounts and deals. For car manufacturers, designers would be a key human resource. In terms of financial resources, a manufacturer will require capital to invest in infrastructure and inventory but can additionally also be used to provide customers with the option of buying cars on lease or taking out a loan on better terms than those provided by banks or other financial institutions.
Optimization and economy of scale(分享)
Most organizations are heavily focused on the bottom-line. And many focus on cost-cutting or smart spending through optimizing the allocation of either their resources or activities. This is the most common motivation for people to enter into partnerships of different types.
When you are looking for efficiency in your company or optimizing your productions chains, key partners can help you achieve this goal. It is unrealistic to think, as an entrepreneur that you have the resources in place to conduct all your key activities in-house. Most partnerships give organizations the ability to share their infrastructures or outsource some activities to more cost-effective options.
Citroen, Peugeot and Toyota joined hands to create a small, cheap car for the masses that they tried to sell for 5000-6000 euros. These cars looked almost the same except for the chassis and a few internal and external details.
Reduction of risk and uncertainty(降低風險)
If you have a good relationship with a key partner, you reduce the inherent risk that comes with doing your own business. You also guarantee supply to your business rather than being dependent on suppliers who aren’t key partners and would therefore not give precedence to your business over others.
Many competitors may form strategic partnerships to share the risk of bringing something new into the market while still competing in various aspects in the industry. A classic example of this is the advent of blu-ray technology which was developed in collaboration by some of the world’s premier consumer electronics and computer technology firms. The development of this technology was expensive and several competitors had to get together and decide that they would all be selling their products based on blu-ray technology; hence they needed to collaborate to make blu-ray technology more mainstream. The group joined hands to bring the technology to the mass market but still competes on the basis of their various blu-ray based gadgets in the consumer market.
Acquisition of particular resources and activities(外包)
If there are certain things that you don’t have in-house and which would require a heavy investment of time, money or both, a key partner who already has these processes and the infrastructure developed would come in extremely handy.
Business models can be extensive maps of the myriad activities that a business needs to perform or the endless resources required to perform these activities successfully. However, it is rare for a new company to have the resources or capabilities in place to fulfill the mandate set down by the business model. Hence, many new companies are beginning their journeys by forming partnerships that give them access to the required resources or processes that they require, but are unable to own yet. Hence, many mobile operators partner with IT companies to develop the operating system their handsets require rather than bearing the heavy investment such an endeavor would require if done in-house. This also gives the IT company a steady source of revenue as well as the advantage of publicity if the mobile manufacturer’s brand is well recognized. Bicycle companies do not manufacture their bicycle accessories. Instead, they get into selective partnerships with bicycle parts manufacturers who customize the parts like the color or size of the bicycle seat according to the preferences of the manufacturer.
Heineken is one of the most popular producers and suppliers of beers in the world, and it is especially well-known in the Netherlands, where they have created very strong relationships with bar owners. In fact, Heineken frequently invests in new bars by providing not only equipment for free but also investing in the décor of the bar. In return, the bar provides Heineken beer exclusively. Hence, Heineken gets a repeat customer for their beer while the bar owner can minimize the cost of setting up the business. Conversely, however, the bar owner is limited to selling just Heineken, which means that if Heineken increases the prices of its beers, the bar owner has no choice but to abide by the new prices.
- 成本驅動(輕瘦的成本結構, 低價格的價值主張, 盡可能的自動化, 大量的外包)
- 價值驅動(專注於創造價值, 額外費用的價值主張)