Different customers feature different behavioural attributes, are interested in different products, services and respond to different messages. Before you start building a new business model, it is crucial for you to be clear about who your primary target group will be in order to tailor your business model around their preferences. Use the Customer Lifetime Value (CLV) metric to decide, which target group might be the most profitable group to focus on. This tool will help you figure out the right market segment for the start. To find out more about Orange Hills visit http://www.orangehills.de.

1. © 2017 Orange HillsTM
GmbH. All rights reserved.
Customers Attributes
BehaviouraldifferencesBehaviouralcommonalities
Non-customers
Clustering
Who are our customers
in our today’s business model?
Who are not our customers -
but could / should be in the future?
How can we classify our customers and non-customers
into target group(s) based on behavioural differences?
Strengthofties
How many (non-)customers are
on the market for each target group?
What lifetime value can we generate
with customers in each target group?
What are our onetime acquisition costs (AC)
for new customers in each target group?
What attributes
help us understand
behavioural
differences between
(non-)customers?
What attributes
are characteristic
for all (non-)
customers?
e.g.
+ Price sensitivity
+ Business paradigm
+ Purchase behavior
(Non-)Customers with a
similar behavioural
characteristic represent
a target group for our
business. What “job(s)” is each
target group trying
to get done?
Not all target groups generate
the same value for your com-
pany. Calculate the Customer
Lifetime Value (CLV) for each
group in order to determine
how much profit a customer
creates over time.
CLV = P x T - AC
Profit a customer generates
per year
Number of years a customer
stays with your company
Onetime costs you will
have to spend to acquire a
new customer
P
T
AC
=
=
=
P
T
AC
Are there any white spots here
no market player is serving today?
Label both axes with
behavioural attributes and
position customers and
non-customers on the
matrix
Label both axes with
behavioural attributes and
position customers and
non-customers on the
matrix
What is our primary segment
that unlocks the most value in
our business?
+ Positive lifetime value (CLV)
+ Easily accessible
+ Well-understood (”job(s)”)
+ Ready to spend
+ Open-minded
Take the segmented target groups
over to the ”Business Model“
canvas. Decide whether you need
one or many business models to
serve them.
TARGET GROUPSOrange HillsTM
GmbH | www.orangehills.de | Follow us on Twitter: @orangehillsgmbh
Team DateIteration 1 2 3
Licensed to Orange Hills GmbH for use in commercial projects from 01 / 01 / 2017 to 31 / 12 / 2017.