Customer Open Innovation-Based Business Model Developing Circle
11.2 Customer Open Innovation-Based Business Model Developing Circle
11.2.5 When and Where Does One Meet Customers?
11.2.5.1 Key Factors
The Get, Keep, Grow Funnel for Customer Business Models
If a customer becomes aware of, shows interest in, considers, and purchases an item, that is, if moving from “acquire” to “activate,” as shown in Fig. 11.7, customers significantly decrease. However, as Get Customers is a significant customer busi- ness model, it is vital continuously to become a source of Get Customers through positive feedback with a viral loop. As a customer business model has an advantage with regard to willing nearby potential customers who share an interest identical to that of the developer, the interests of customers based on the owner’s experience, in particular, during the Get Customers stage, should be secured, and concrete pur- chases should occur.
Through the Keep Customers process, which directly reflects the refinement of a business model developer’s continuous interests and experiences, the requirements and expectations of customers should be continuously met with creativity. During this stage, a customer business model developer needs to group customers who have a critical mind similar to theirs and then must maintain the Keep Customers stage.
In addition, to operate a customer business model continuously, the Grow Customers strategy of upselling, in which the manner of meeting customers is based on high-end product lines, net-selling based on the product next to the existing prod- uct, and cross-selling based on a product contrary to the existing purchase, needs to be pursued. During this process, customers can be continuously secured,
2. Select a revenue form and price mechanism that rapidly generate revenue as soon as possible when selecting one from among various forms, such as product sales, usage fees, membership fees, rental fees, licensing, commis- sions, and advertisements, and/or when selecting the price mechanism, such as fixed pricing and dynamic pricing, during the design of a revenue stream.
3. Design a structure which prioritizes the fact that costs are needed for a long time when a cost structure is designed.
11 Customer Open Innovation-Based Business Model Developing Circle
maintained, and expanded based on the process of the refinement of the initial criti- cal mind as a customer and the application to other customers in various ways in a customer business model.
Sophisticated Customer Channels and Relationships Are the Highlights of Customer Business Models
Sophisticated designs of customer channels, such as direct management, the opera- tion of a partner store, and the operation of online or mobile websites, represent the ultimate stage that allows the operation of a customer business model. Thus, whether a customer business model will succeed is determined by the weight of the attention given to this part.
Customer relationship designs in various forms, such as self-service, automation service, the community type, the co-creation type with a customer, customer com- munity operations, standard support for each individual customer, and in-depth sup- port of each individual customer, practically determine the sustainability of a customer business model. Thus, customer relationship design must start with the most preferred type of customer business model developer and must be concretely and directly operated (Osterwalder and Pigneur 2010, p. 35).
Fig. 11.7 The Get, Keep, Grow funnel in physical channels (Source: Blank and Dorf (2012, p. 126))
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11.2.5.2 Channels and Customer Relations for the Customer Open Innovation Business Model Circle
Research Question
1. Select any case from the newspaper and analyze through customer open innovation- based business model developing circle.
2. Develop your own business model through customer open innovation-based business model developing circle.
Channels and Customer Relations Template: Customer Open Innovation Business Model Circle
1. Creatively maintain the process, starting with the inner view of a customer business model developer and obtaining a nearby potential customer. To do this, when organizing the channel of an off-line or online store or a mobile Web store, minimize the initial cost of the customer business model, and develop a concrete and direct method of meeting customers from experience, and then creatively apply the method.
2. In addition, the most proper method to share a critical mind between cus- tomers from a perspective of a customer is applied by a developer, and it is important to seek a means to allow customers to maintain their activities continuously. Find and apply the most valid and creative method, starting with the critical mind of a business model developer among various cus- tomer relations, such as the community, individual support, in-depth sup- port, and customer co-creation processes.
3. During the customer business model development stage, concretely and directly design a method of expanding various customers to Grow Customers in advance, concretely and directly suggest this in the type of vision to be deployed in the near future, and form the momentum to main- tain and continuously expand customers.
11 Customer Open Innovation-Based Business Model Developing Circle
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