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Template: Target Groups Template

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Different customers feature different behavioural attributes, are interested in different products, services and respond to different messages. Before you start building a new business model, it is crucial for you to be clear about who your primary target group will be in order to tailor your business model around their preferences. Use the Customer Lifetime Value (CLV) metric to decide, which target group might be the most profitable group to focus on. This tool will help you figure out the right market segment for the start.

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Template: Target Groups Template

  1. 1. © 2017 Orange HillsTM GmbH. All rights reserved. Customers Attributes BehaviouraldifferencesBehaviouralcommonalities Non-customers Clustering Who are our customers in our today’s business model? Who are not our customers - but could / should be in the future? How can we classify our customers and non-customers into target group(s) based on behavioural differences? Strengthofties How many (non-)customers are on the market for each target group? What lifetime value can we generate with customers in each target group? What are our onetime acquisition costs (AC) for new customers in each target group? What attributes help us understand behavioural differences between (non-)customers? What attributes are characteristic for all (non-) customers? e.g. + Price sensitivity + Business paradigm + Purchase behavior (Non-)Customers with a similar behavioural characteristic represent a target group for our business. What “job(s)” is each target group trying to get done? Not all target groups generate the same value for your com- pany. Calculate the Customer Lifetime Value (CLV) for each group in order to determine how much proﬁt a customer creates over time. CLV = P x T - AC Proﬁt a customer generates per year Number of years a customer stays with your company Onetime costs you will have to spend to acquire a new customer P T AC = = = P T AC Are there any white spots here no market player is serving today? Label both axes with behavioural attributes and position customers and non-customers on the matrix Label both axes with behavioural attributes and position customers and non-customers on the matrix What is our primary segment that unlocks the most value in our business? + Positive lifetime value (CLV) + Easily accessible + Well-understood (”job(s)”) + Ready to spend + Open-minded Take the segmented target groups over to the ”Business Model“ canvas. Decide whether you need one or many business models to serve them. TARGET GROUPSOrange HillsTM GmbH | www.orangehills.de | Follow us on Twitter: @orangehillsgmbh Team DateIteration 1 2 3 Licensed to Orange Hills GmbH for use in commercial projects from 01 / 01 / 2017 to 31 / 12 / 2017.