Customer Segments Business Model Canvas Types And Tips!

What is customer segments business model canvas? Here are the explanation for you. What are you waiting for? Let’s check this out!

What Is Customer Segments

Have you ever heard about the customer segments business model? So customer segments are the important things in the business model canvas. What things should I input in the customer segments business model? So you need to list out and group your target customers which you plan to sell your products or services to based on their behaviors, needs,social, demographic profile, interest and other similarities.

Each organization is able to choose their target in a single group or multiple groups based on its products and services. Here are the features needed for customer categorization.

• A distribution channel and target to be reached.
• Types of relationships.
• The difference in the level of profitability.
• Represents for the organization.

Types Of Customer Segments

What is key activities in business model canvas? The key of a business model canvas is to group the difference from each customer. Here are the difference that can be segmented:

• Demographic – based on age, gender, religion, ethnicity, educational level, income and others.
• Geographic – based on area, such as country, city and region, 
• Psychographic – based on lifestyle, social status,behavior, personality trait and consumption

Here are the types of customer segments.

Mass Market

The first type of customer segment is the mass market. You need to know what the mass market wants. You have to create attractive products and services that can meet the customer segment needs.

Niche Market

One channels business model canvas is a niche market. Business models are usually intended for smaller customer segments based on the specific needs like service,  value propositions, distribution channels, customer relationships, manufacturer, trade and also distribution. 

Segmented

Another type of business model is segmented where the organization manufactures and develops product and service for many segments and variations based on their interest and needs. You can also separate it based on value propositions, customer relationships and distribution channels.

Diversified

The diversified business model serves customers based on the needs and requirements diversity.

Multilateral Platform 

There is a multilateral platform that serves more than 1 customer segment. Each segment is independent and used to satisfy the customers.

Read also: 20 Top Online Selling Sites Philippines, Do Business Now!

Creating A Customer Profile (How To Segment Customers)

Is there any free template business model canvas? Before you can determine the customer segment, you need to understand your customers’ job, pains, gains and also behavior. Here are the various customer types you need to know.

• A Curator is the one who sifts through a lot of options and information available and funnels the relevant options for the audience.
• A Broadcaster is the one that  shares information of value to the audience.
• A Tastemaker is the one that is very good at tasting and followed by an audience who have similar tastes.
• A Celebrity is someone that is famous and has huge fans.

someone with a dedicated fan 

Customer Pains

One of the key activities business model canvas is customer pains. To avoid abt negative response. You need to do market research about customer pains for example undesired customers problems, outcomes and characteristics. Here are some of customer pains canvas example

• Obstacles – Searching for an obstacle to prevent the customer’s pain in completing an assigned task.
• Risks – the possibilities of wrong or negative consequences of an action.
• Pain severity – the customer pain varies depends on the customers desire

Customer Gains

There are also customer gains. Customer gains are the result of fulfilling the customers desire. There are several types of customer gains such as:

Required Gains

What are required gains? So required gains means the customer expectation when buying your product. Each customer has different expectations like the product’s specification, price and others.

Expected Gains

There is also an expected gain which is basic gains that fulfill the basic purpose.

Desired Gains

There is a desired gain which is also known as the customer’s wishlist. It is what the customers want and might lead to customer satisfaction if it is fulfilled.

Unexpected Gains

Unexpected gains are something that customers never thought they would get, which is new ideas and innovations that can attract the customers’ attention.

Gain Relevance

A great entrepreneur needs to be good at evaluating how essential the gain is to the customer. There are many types of Gains  from essential to nice to have.

Read also: The Four Types of E-Commerce and How to Choose the Best One

Steps For Using The Framework

Do you want to make a template business model canvas? Here are the steps to use the framework.

• Choose the customer segment that you would like to analyze.
• Find out what tasks your customers are trying to accomplish. 
• Point the customer’s pain like the risks and challenges.
• Point the customers gains you would have.
• Rank the jobs, pains and gains in relevance order. 

Best Practices & Common Mistakes When Using The Framework

Here are the best practices when using the framework such as:

• If you are targeting more than one customer segment, you need to separate each segment’s value propositions.
• To achieve gains, you need to find the solution and complete the customers needs.
• Do not overlook the significance of emotional and social jobs. 
• While creating your customer profile, it is better to create a complete profile by covering all their jobs, gains, and pains that are relevant to your product.
• Don’t make the ambiguous gains when mentioning the customers’ pains and gains, it is better to make the effective and specific one.

Here are the common mistakes when using the framework such as:

• Creating a customer profile that covers more than one segment.
• Treat jobs and results as the same. 
• Ignoring the emotional and social jobs.
• Only mention the relevant jobs, pains and gains of your product or service.
• Being satisfied with a few jobs, pains and gains on your customer profile.
• Not describe the jobs, pains and gains.

Case Study Of Customer Segments Business Model Canvas

Here are several cases of customer segments business model canvas example you need to know.

• Customer Jobs – keep blood sugar within target range and make therapy adjustments.
• Device manufacturers – Design, build and sell devices.
• Customer Pains – fearing over losing their children.
• Device manufacturers: software must have value to providers so they can recommend it to other patients.

Conclusion

There is a business model canvas certification. To create the customer segment business model, you need to list out and group your target customers which you plan to sell your products or services to based on their behaviors, needs,social, demographic profile, interest and other similarities. After you have got your business idea that you want to sell and group your target audience, then you need to promote your business.

Ginee Philippines

You can manage your online business well with Ginee Philippines! As mentioned before, Ginee can help you find the best selling items on Lazada even other marketplaces, plus make your items become one of the best selling ones. Ginee has features like product management, stock, order, promotion, Ginee Ads, Ginee Chat, Ginee WMS, Ginee Fulfillment, and many more. Register Ginee Now and enjoy the benefits of being smart sellers!