NOTE on BMC : Customer Segment

BMC consists of 9 building blocks which mainly used to identify a business model.
Most people who wanted to design a new model, BMC will also serves as a great tool.

Block for value proposition and customer segment prepared interchangeably.
For a business to start, they might need to look into the customer segment first.

However, for business which has already in business with a developed customer segment, they might want to work on the value proposition block to begin with.

Nevertheless, the right part of the BMC need to start. Let us see the first block: CUSTOMER SEGMENT

BMC : Customer Segment

1. Customer segment

Customers are unique by certain criteria . Sometime, location determined the lifestyle which relates to their spending behavior. Whereas, in some cases, their education background determine their lifestyle.

There are 5 basic category of customer segments in a BMC:

+ mass market
+ niche
+ segmented
+ diversified
+ multi – sided platform

By determining the customer segment for our business or products, we will enable to reduce the risk of failure.

For example, a new chain of preschools are  to open up in 2014. The team has prepared a BMC for it.

They will look into their customer segment. Who are they? For example:

+ young parents with children age 4-6 years.
+ young educated parents who look for output and result based of students’ talent and individual achievement
+ family with total household income of RM3000-5000 per month.
… and so on.

When preparing these categories (which normally between 3 – 5 ), the team will be able to plan out the next content of the block, value proposition for each customer segment.


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