Some+Notes+about+the+Business+Model+Canvas

media type="custom" key="25820778" toc = **Some notes about the business model canvas** =
 * A ** customer segment ** is the group of people for whom you are solving a big pain or unmet need
 * Your ** value proposition ** solves the problem for your customer segment through a very focused set of attributes or features; however, you should focus first on the ** BENEFITS ** your value proposition you are delivering to your customer segment.
 * **Channels** are the touchpoints involving communications with your customer segment. They focus on the ways you help your customer become //aware of//, //evaluate//, and //purchase// your product or service. They may also include a post-purchase channel, such as offers for replacements, upgrades, etc. You can help a potential customer //evaluate// your product or service by offering, e.g., a 30-day free trial period. Note that this is also a form of //acquiring a customer// because you have begun to start a relationship with a potential customer.
 * **Customer relationships** deal with the //acquisition//, //retention//, and //upselling// of your customer segment. Loyalty programs such as frequent-flyer miles or purchase points help businesses to retain customers. Referral programs serve as both acquisition and retention mechanisms. The classic example of upselling is "Would you like fries with that?" E-commerce sites like Amazon.com upsell to their customers by showing you products similar to the ones you just purchased online.
 * The logic of how your value proposition satisfies your customer segment's needs and through what relationships and channels you engage them determines your **revenue model**.
 * **Key activities** are those "to-do" things that you can or should do best on your own. Building a brand, promoting your offering, developing proprietary intellectual property you can patent, and delivering your value proposition are typically key activities that you would not want to contract out to a partner. Think of key activities as a "to-do" list for the core functions of your company.
 * **Key resources** are those assets ("things") that your business absolutely must own or control in order to deliver the value proposition. Nespresso's stores promote the product's brand as prestigious and thus worthy of a higher customer price. Facebook's platforms are crucial to its continued growth in revenues from advertising. Nick Saban is a key resource for the University of Alabama because he helps the program attract top recruits and coaches, brings national attention and promotion to the program, and generates sales of game tickets and UA-branded sportswear.
 * **Key partners** are those organizations with whom you contract, joint venture, or ally to deliver aspects of your value proposition that you do not perform in your key activities. Amazon.com, for example, relies on UPS as a key partner for fulfilling its guaranteed 2-day delivery "Amazon Prime" offering to customers. An internet-based company might partner with a company like Rackspace to host its website and back end IT functions.
 * Finally, your **cost structure** should be a function of how you structured your key resources, activities, and partnerships. As most of you found during our BM canvas exercise today, the cost structure is //the last thing you complete on the canvas//. Most importantly, your cost structure should be "congruent" with your revenues. You should be able to relate each cost you have to incur directly or closely-but-indirectly to your sources of revenue. Otherwise, you may have a flawed business model!