BUSINESS MODEL CANVAS

Block 3 & Block 4

PREPARED BY: DR HAWA HUSNA
BLOCK 3: CHANNEL (SALURAN)
CHANNEL OF DISTRIBUTIONS

• The distribution channel simply refers to the path or route through which product
moves from producer to ultimate customer
• Two type of channel: Direct Channel (Zero level) or Indirect Channel
 CHANNEL OF SALES

A) MULTICHANNEL
MARKETING
b) E-COMMERCE
Electronic commerce (ecommerce) refers to companies and individuals that buy and
sell goods and services over the internet
C)OMNICHANNEL
Definition: An omni-channel retail experience will include brick-and-mortar stores, app-based options, and
online platforms. For instance, a clothing brand might sell its products on its website, app, instagram's
“shopping” tab, and amazon, as well as brick-and-mortar stores

Omnichannel failure?
• Without a centralised integration system, customer data from all channels are scattered and difficult to
maintain
• Example of Omnichannel:
Bonia – incorporate e-commerce marketplace and digital apps

Uniqlo– incorporate AR technology in store (magic mirror) and attractive

mobile apps
BLOCK 4: CUSTOMER RELATIONSHIPS
(PERHUBUNGAN PELANGGAN)
We can distinguish between several types of Customer Relationships, which may
co-exist in a company’s relationship with a particular Customer Segment

TYPES OF CUSTOMER RELATIONSHIPS

Transactional Long-term Personal assistance

Dedicated personal Self-service Automated services

assistance

Communities Co-creation Switching costs

1) TRANSACTIONAL
• No real relationship between the company and the customer. Example: airport kiosk
2) LONG TERM
• A long-term and maybe even deep relationship is established between the company and the
customer
• Interacts with the customer on a recurring basis
3) PERSONAL ASSISTANCE
• This relationship is 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. This may happen onsite at the point of sale, through call
centers, by e-mail, or through other means
4) DEDICATED PERSONAL ASSISTANCE
• Involves dedicating a customer representative specifically to an individual client
• Represents the deepest and most intimate type of relationship and normally develops over a long
period of time
• Example: private banking services, for example, dedicated bankers serve high net worth individuals.
CIMB Preferred Customer
5) SELF-SERVICE
• Company maintains no direct relationship with customers
• Customers to help themselves
6) AUTOMATED SERVICES
• Mixes a more sophisticated form of customer self-service with automated processes.
• Personal online profiles give customers access to customized services.
• Automated services can recognize individual customers and their characteristics, and offer
information related to orders or transactions. At their best, automated services can stimulate a
personal relationship (e.g. Offering book or movie recommendations)
7) COMMUNITIES
• Companies are utilizing user communities to become more involved with customers/prospects and to
facilitate connections between community members.
• Maintain online communities that allow users to exchange knowledge and solve each other’s
problems. Communities can also help companies better understand their customers.
8) CO-CREATION
• Amazon.Com invites customers to write reviews and thus create value for other book lovers. Some
companies engage customers to assist with the design of new and innovative products. Youtube:
solicit customers to create content for public consumption
9) SWITCHING COSTS
• Indicate how easy or how difficult it is for a customer to switch to a different alternative
• For example, when a customer of a data storage provider stores all his data in a proprietary format it
might be difficult for him to switch to an alternative provider
CUSTOMER ACQUISITION
Sales promotion
• A marketing strategy
where a business will
use short-term
campaigns to spark
interest and create PRO CONS
demand for product,
service or other offers.
• Motivate buying • Creating loyalty and • Devalue your brand
behaviour or trigger an enthusiasm for your brand
• Make it difficult to sell
uptick in purchases in • Increasing sales and revenue
the short term, in order • Gaining valuable insights into
products or services at
to reach a benchmark customer behaviour your standard
or goal
 TYPES OF SALES PROMOTION
Free
Discounted
Shipping/Free Flash Sale
products
• Make sure your discount is
Returns • Offer that only lasts for a
attractive • Free limited time
• Consider your bottom line • Create sense of urgency
• Don’t do it too often shipping/free • Strategy to sell more
returns products and get rid of
surplus stock
creates • Successful flash sales are
ones that don’t last very
customer long and 50% of
security purchases occur during
the first hour of a flash
• Incorporate sale

shipping cost
 Product
Buy More,
Giveaways/Bra Loyalty Points
Save More
• This kind of nded Gifts
• Makes your • Build a solid
deal entices brand base of loyal
the customer memorable fans and
to buy more of • Example gift: entice people
your stock Price Match Holiday
to shop more
Competitions keychains,
Promise Promotions
•• You
Greatdon’t
wayhave
to • bumper
Helps you stay •• Provide
Customers them
to offer
gain a huge
email stickers,
ahead of the with a loyalty
always like to
discount,
sign ups but magnets,
competition system to
spend more
make sure
• Helps you it’s pens and etc
• Provides a no keep
aroundcoming
the
attractive
raise your lose situation back (gain
holidays
Customer retention
Customer retention : measure customer loyalty over time and gauge overall success. Implementing various tactics
to reduce the number of customers lost in a period and better their experiences to ensure that they remain loyal to
the business
BENEFITS:
• Cost savings: Customer retention is generally more
cost-effective than acquiring first-time customers

• Positive word of mouth marketing: Loyal customers are

more likely to tell their friends and family about your
brand

• A better bottom line: Increasing retention rates by just 5

percent can increase revenue by 25 percent to 95
percent

• Customer loyalty: Loyal customers are less interested

in competitors, advocate for your brand, and bring in
more revenue for the business.

• Increased customer spend: Loyaly customers are more Acquiring a new customer can be five to 25 times
likely to purchase again, and willing to spend more more expensive than holding on to an existing
when they do one
 1.Create a strong onboarding experience
2.Provide personalized customer
experiences
3.Build trust with your customers
HOW TO 4.Implement a customer feedback loop
RETAIN
A 5.Maintain a customer communication
CUSTOM calendar
6.Send a company newsletter
ER
7.Start a customer education program
8.Offer unique services
9.Start a customer retention program
 Give Out LOYALTY
Offer First-Time
PROGRAMS Present Special
Special Purchase Offers in
Rewards for Discounts to Exchange for
• It is a win-win
Referrals •New
OfferCustomers • Reward
Create special
Points
customer loyal customers a offers that only
Celebrate
ty program one-time members can
Customer
idea for small discount to take
Birthdays with
businesses to Leverage
use in theirFree Run a Bonus
advantage of
Discounts/
large Trials
first purchase Point Campaign
by exchanging
• Discount
Coupons/ Gift • Subscription- • Promoting
enterprises
coupons in exchange
based services loyalty points
products or
Cards
•• Greeting
Example:cards for their
or softwareemail service that
Hotel Referral addresses
• Offer free • If trial loyalty
 THE BODY SHOP
(LOYALTY PROGRAM BASED ON CHARITY)

• Incorporate a loyalty program based

on charity
• Customers are more likely to
become brand loyalists if you
provide mutual value. It also
highlights the brand’s stance and
values
Sephora Beauty Insider- The program is
simply a traditional point system where
customers earn rewards for each purchase

Beauty insider program rewards:

• Gift cards
• Free shipping or samples
• They can even redeem points for
experiences such as exclusive events and
meet & greets
Offering them the flexibility to choose how they
spend pointsand get the products and deals
they want without cheapening the perceived
value of the products
 The North Face’s
XPLR Pass program

Customers earn loyalty points every time they make a purchase or

sometimes by attending events, checking in at certain locations, or
downloading the north face app
The north face also offers many cool benefits for its members like:
• Early access to limited edition collections
• Opportunity to wear test products before they are available to the
public
• Product ‘field testing’