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Fill out two more sections for the business of your business model canvas: Customer Relationship Types, and Define Your Channel Strategies. Just write down what you would actually write down for your business, in a way that your team will understand.
Customer Relationship Types
Your customer relationship will influence the experience that they will have with you and the frequency of engagement with them.
Here are 5 commonly used customer relationships as part of your Business Model Canvas development:
Self Service or Automated relationships where clients can conduct most or all of the service they need without assistance by anyone in your business. A lot of monthly subscription or online services follow this model
Personal Relationships where your direct teams are involved in selling and servicing your clients. This is common in physical retail, high value and corporate
sales
.
Creation Relationship where clients contribute to the growth of your business, such as the case with social media sites
Transactional Relationship where the client can use your product and service once and might never have the need to return to you and use it again
Switching Cost are sticky relationships where it becomes difficult for a client to change a service since they have invested so much time and effort into the relationship. First movers in this type of relationship have the most to gainDetermine which one of these relation types have the most value to your business and to your clients’ experience resulting in great customer service.
Key Revenue Streams
Revenue streams or sales refer to how you generate cash from your clients. In the Business Model Canvas, different client segments could pay you in different ways. Without sales, a business can’t function, so this is the most important aspects of any business.
7 most used revenue types include:
- Asset sales refer to cases where you sell a product to a client who then becomes the owner of that product. This is the most widely used model in business and takes place anytime we buy a car, computer or a building
- Usage fee refers to when a client uses your product or service but its ownership remains with you. This is common in the hotel or airline industry
- Subscription fee refers to when your clients subscribe on a monthly or weekly basis and can use your infrastructure. Examples of this include software as a service, gym memberships, etc..
- Leasing or renting or lending refer to allowing clients to use your assets for a period of time as if it is theirs
- Licensing revenue is earned when you give clients permission to use your intellectual property. This is common in content production and inventions.
- Brokerage fees are earned when you take a commission from facilitating a business transaction between two parties.
- Advertising results from fees for advertising a particular product or service or brandEnsuring which of the above revenue streams is most convenient for each of your target segments and in turn allowing you to generate the most business is an essential aspect of having your business survive and thrive.
Green Drive Logistics is a company that deals with the supply of farm products. Our office is located at 23rd avenue Street in Seattle, Washington DC. We source fresh products that include kales, tomatoes, onions, broccoli and any other vegetable products from the local farms and supply them in the local market. Our customer base is the local retailing grocery stalls in Seattle and open air vegetable traders in Seattle Municipality. We are currently in talks with the major supermarkets in the area so that they can give us an opportunity to be part of their supplier’s team. Our goal is to ensure every household in Seattle District gets a farm product that has been grown in the local farms. We commenced operations in 2015 and we are currently in the third year of large scale supplies. Our vision statement “Healthy Diet for a Sustainable Body” helps to educate people on the importance including vegetables in every meal that they take.
Green Drive Logistics has fourteen employees, five drivers and five co-drivers, two marketers, one accountant and one operations manager. Proximity to the farms that produce the vegetables gives the company an advantage over other competing companies in the vicinity.
Running Head: BUSINESS DEVELOPMENT 1
BUSINESS DEVELOPMENT 2
Green Drive Logistics Company
Institution: ENTREPRENEURSHIP
Student’s name: Reem Alogaidi
Date:05/15/2020
Value proposition
A good number of Seattle District residents have had to shift from consumption of fresh farm products to canned vegetable products. Canned vegetable products are a convenient choice for most households but not as health as fresh products from the farm (Min & Lin, 2017). Our company is keen to maintain a healthy community by encouraging them to opt for fresh products from the local farms. The company strives to bring the farm products closer to the consumers. Proximity will be achieved by supplying most of the grocery stalls, supermarkets and local vendors with our products. Our services are unique from our customers since we offer an excellent packaging design that categorizes the vegetables into leafy green, marrow, edible stems, alliums, and roots in the same packaging box.
Channel strategies
The business is currently using an indirect channeling strategy. We depend on retailers to complete the supply chain to the consumers. We have to create a good perception of our products through the retailing stalls. Retailers have an already established market structure and supplying companies have to make efforts to improve the market base with constant and reliable supplies (Ingene & Brown, 2019). Placing of orders can be done through our company website but delivery of products is strictly physical, by our company vehicles.
Reference
Ingene, C. A., & Brown, J. R. (Eds.). (2019). Handbook of Research on Distribution Channels. Edward Elgar Publishing.
Min, M., & Lin, B. (2017). Analysis of Benefit Distribution among Logistics Alliance in Fresh Farm Produce Distribution. Logistics Technology, (6), 31.
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