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| photo credit : www.greentechmedia.com |
The initial step you undertake when writing your business model (using the business model canvas) is CUSTOMER SEGMENTATION.
Firstly, identify what you are doing for your customers?
Do your product(s) or service(s) cater to different markets? Break the market for your product(s) and service(s) into segments.
Classify each market segment based on demographics and geographics .
Demographic segmentation is based on variables such as age, gender, generation, religion, occupation, education, income ,marital status
Geographic segmentation is based on variables such as climate, settlement (urban, rural, sub-urban), the size of the settlements and economic developments within these settlements.
Each market segment should then be further analyzed based on behavior and psychographics to create a list of personas that fall within each market segment;
The behavior and psychographics of each market segment can be determined based on what they think, feel, see and do in your product area.
The think-see-feel-do checklist below is an easy way to do this; if you are not sure of one aspect when using the checklist, you can make an assumption but MAKE SURE you conduct a proper research and find out more about such aspects …..
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THINK
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What is their point of view on your area of interest?
What do they like, dislike about it? What’s the difference in their view between how it is and how it should be? |
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SEE
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What influences and informs them about your area of interest?
Where do they get that? Peers? Media? |
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FEEL
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What are the underlying emotional drivers in the area?
How does that influence what they do and their interest in alternatives? |
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DO
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When you observe them, what do they actually do?
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At the end of this exercise, you should be able to organize each market segment against a list of personas, if you have more than one market segment ,it is advised you prioritize ; which of the market segments will you engage first if you had to pick, followed by second , third……
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MARKET/CUSTOMER SEGMENT
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PERSONA
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PRIORITY LEVEL
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Don’t be bothered if you are spending too much time on customer segmentation , It is important to get this right as results from this (and value proposition) should drive everything else in your business model.
DEFINE YOUR BUSINESS 3 will take you to the next phase of writing your business model…..stay tuned
