Customer Relationships is a block of Business Model Canvas that refers to the relationship a company establishes with specific Customer Segments.
Some questions that are useful to understand the content of this block are
– Which relations has the company established with customers?
– How costly are them?
– How are they integrated with the rest of the business model?
– What type of relationship does each customer segment expect the company to establish?
Some examples of Customer Relationships are:
– Transactional (there is no real relationship, the company interacts with the customer on a transactional basis)
– Long-Term (a deep relationship is established, the company interacts with the customer on a recurring basis)
– Personal Assistance (based on human interaction, the customer can communicate with a real customer representative to get help during the sales process or after the purchase is complete and it may happen onsite at the point of sale, through call centers, by e-mail, or through other means)
– Dedicated Personal Assistance (it involves dedicating a customer representative specifically to an individual client, it represents the deepest and most intimate type of relationship and normally develops over a long period of time)
– Self-Service (a company maintains no direct relationship with customers and it provides all the necessary means for customers to help themselves)
– Automated Services (they mix a more sophisticated form of customer self-service with automated processes that can recognize individual customers and their characteristics, and offer information related to orders or transactions)
– Communities (utilized to become more involved with customers/prospects and to facilitate connections between community members, online communities allow users to exchange knowledge/solve each other’s problems and help companies better understand their customers)
– Co-Creation (this approach goes beyond the traditional customer-vendor relationship to co-create value with customers and it is about engaging customers to assist with the design of new and innovative products)
A very useful way to model Customer Relationships is using a Funnel.
A.A.A.R.R.R. FUNNEL AND VIRAL LOOP
A Viral Loop is the result of a positive customer experience while interacting with the company’s Value Proposition. More precisely if a customer is happy with a product or service, he/she might be so excited that he/she wants to share with others his/her experience as well as news and info about the company’s products or services.
A Viral Loop creates quick and cost-effective Brand Recognition.
A helpful tool for creating a Viral Loop is the A.A.A.R.R.R. Funnel also known as Pirate Funnel.
The funnel models the Consumer Relationships in 6 phases:
Each of these phases is managed through a metric that is called The Only Metric That Matters.
Learn more about the A.A.A.R.R.R. Funnel following this link.
Business Strategy | Product Marketing | Executive Master eCommerce Management | Business Innovation Master | MSc
I am driven by my personal growth and of people/contexts that surround me.
I followed a professional path in Valentino Fashion Group and Luxottica during which, thanks to the ability to understand different businesses and interests, I was able to succeed in Operations, Merchandising and Retail.
These organizations have exploited my ability to mediate and translate needs/constraints into practice, assigning me to Project Management roles.
Luxottica relied on my ability to analyze, to anticipate things and to imagine/implement solutions by appointing me in Supply Chain Management department and assigning me to the Product Management of IoT solutions for Anti-counterfeiting and Retail digitalization.
During this professional path, I also developed my leadership by managing teams to build Processes, Organizations, Systems and Governance Tools.