3. “WE NEED AN APP”
IS NOT A MOBILE STRATEGY
At Flow Pilots, we believe that the smart use of mobile technologies will be
a key driver in the success of modern companies.
That is why we don’t just develop apps. We carefully design, build, deploy
and manage the digital tools that help our customers increase revenues,
decrease costs or bring freedom and flexibility to their employees.
12. Customer Segments
Customer segments are justified only if
Their needs require a distinct offer
They are reached through different channels
They require different types of relationships
They have substantially different profitabilities
They are willing to pay for different aspects of the offer
For whom are we creating value?
Who are our most important customers?
13. Value Proposition
A Value Proposition creates value
for a specific Customer Segment
through a distinct mix of elements
catering to that segment’s needs
Elements of a Value Proposition
Price
Newness
Performance
Customisation
Design
Cost reduction
Risk reduction
Accessibility
Convenience
Brand/status
What value do we deliver to the customers?
Which one of our customer’s problem are we helping to solve?
What bundles of products and services are we offering to each segment?
14. Channels
Channels have five distinct phases:
Awareness Evaluation Purchase Delivery After sales
Own
Direct
Own people
Web sales
Indirect
Own stores
Partner
Partner stores
Wholesaler
Through which channels do our Customer Segments want to be reached?
How are we reaching them now? Are our channels integrated?
Which ones work best? Which ones are most cost-efficient?
15. Customer Relationships
Customer relationships are
mainly driven by the need for
customer acquisition
customer retention or
up- and cross-selling
What type of relationship does each of our Customer Segments expect us to
establish and maintain with them?
Which ones have we established? How costly are they?
How are they integrated with the rest of the business model?
Types of relationships
Personal assistance
Dedicated personal assistance
Self-service
Automated services
Communities
Co-creation
16. Revenue Streams
A business model can involve
different types of revenue streams
Transaction revenues
Recurring revenues
Possible revenue streams
Asset sale
Usage fee
Subscription fees
Lending/Renting/Leasing
Licensing
Brokerage fees
Advertising (3rd party)
Non-monetary rewards
For what are our customers really willing to pay?
For what do they currently pay? Are we capturing all value?
How much does each Revenue Stream contribute to overall revenues?
17. Key Resources
Key resources can be
physical,
intellectual or
human
What Key Resources do our Value Propositions require?
Our Distribution Channels? Customer Relationships? Revenue Streams?
Examples of key resources
Intellectual property
CRM system
Infrastructure
Shops or retailers
Workforce
Capital
18. Key Activities
Key activities are the most
important actions a company
must take to operate successfully
What Key Activities do our Value Propositions require?
Our Distribution Channels? Customer Relationships? Revenue Streams?
Key Activities
Production/Development
Problem Solving
Infrastructure management
Partner management
…
19. Key Partnerships
We can distinguish four types
of partnerships:
Strategic alliances between non-competitors
Coopetition – alliances between competitors
Joint ventures to develop new business
Long term buyer-supplier relationships
Who are our Key Partners? Who are our Key Suppliers?
Which Key Resources or Key Activities are we sourcing from our partners?
Motivation for partnerships
Optimisation and economies of scale
Reduction of risk and uncertainty
Acquisition of particular resources or activities
20. Cost Structure
Cost is important for any company,
but there is a clear distinction between
cost-driven and
value-driven business models
Key cost parameters
Fixed costs
Variable costs
Economies of scale
Economies of scope
What are the most important costs in our business model?
Which Key Resources and Key Activities are most expensive?
28. Why do your
customers buy
from you?
Why do you buy
from your key
partners/suppliers?
Why do you
oursource some
activities?
Why do external
channels sell your
product or service?
32. Free basic
value proposition
Large base of free
users
Small base of
paying users
Paid
Premium
service
Paid premium
services
Cost of serving
paying users
Cost of serving
free users
Long-term
relationship
Focused on
conversion
33. In the free model at least one substantial Customer Segment is able
to continuously benefit from a free-of-charge offer.
Key to free business models is the
low marginal cost of
serving additional free users
Key factors to consider are:
The average cost of serving a free user
The conversion rate to paying customers
34. “Bait”
product or service
Single customer
segment for “bait”
and “hook”
“Hook”
product or service
Recurring purchases
of “hook” products
or services
Cost of subsidising
“bait” product
Lock in
One-off purchase
of “bait” product
Substitutes often
protected by
patents
35. Where Gilette pioneered, mobile operators and
printer manufacturers followed.
An attractive (or free) initial offering
triggers a profitable stream of future
revenues through related products or
services
Key factors to consider are:
The average cost of serving a free user
The conversion rate to paying customers
36. Successful companies choose one discipline and fully commit to it.
An inside-out strategic option.
Customer intimacy
Operational excellence Product leadership
37. Operational excellence Customer intimacy Product leadership
Rules Process- and product focused
“One size fits all” attitude
Uniformity
Customer focused
“Have it your way” attitude
Variation
Concept- and future-oriented
“Out-of-the-box” attitude
Experimentation
Processes End-to-end supply chain
optimisation
Efficiency and reliability
Just-in-time
Customer service
Flexibility
Accessibility
Product development
Time-to-market and marcom
Emphasis on “breakthroughs”
Organisation Central management
Few delegated responsabilties
Professionalism within
Decision power with customer
contact
Professionalism on the outside
Ad-hoc, organic, cellular
Professionalism throught the
organisation
Limited structures
Management “Command and control”
Standard procedures
Cost control
Customer comes first
“Lifetime value”
Result-driven management
Individual innovation is
rewarded
Risk management
Exposure management
Internal systems Integrated and “low cost”
Transaction-oriented
System equals process
Professional CRM
Tight links between intenal and
external information
Analytics
People-centric communication
Collaborative tools
Pick one. Be committed. Be relentless!