What is the canvas model and how to apply it to an eCommerce

SUSANA GALEANOAUGUST 19, 2019

Anyone with an eCommerce has a key idea in mind: sell . However, to achieve this objective so clear and concise , certain steps must be followed so that the potential client achieves the conversion ... and multiplies.

Whether your eCommerce is configured as a new project or is an alternative route for a consolidated company that has been selling its products and services for a long time, you will have to face the immense competition that is already present on the internet, and that is that although a eCommerce allows us to reach millions of potential customers on a scale that was previously impossible to imagine, it is also true that every day a greater number of companies turn to this channel.

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You must not only be clear about what you will sell in your eCommerce, but the other circumstances that will affect it

But you have to be careful, because no matter how much experience you have in your sector, an eCommerce needs special attention and care, that is, it is not possible to apply the current business model of a traditional company to an eCommerce, since it has different factors that will influence the sales process.

If we take your new eCommerce as our own entity, we must develop its own business model, and for this the Canvas model will be very useful.

What is the canvas model

The Business Model Canvas or Canvas model was born in 2010, devised by Alexander Osterwalder , who included it within the Lean-Startup methodology in the book Business Model Generation , and is based on finding and promoting new ways to create, deliver and capture value for the client through validated learning.

In the canvas model, refined with the help of more than 400 entrepreneurs from 45 countries, it incorporates nine basic business components within a simple one-page design, with which you can have at a glance all the important information and thereby make changes As your eCommerce grows and learns from its past actions, and best of all, it won't take long to create these new strategies.

Canvas Model Template. Image: Wikimedia

This template that you can create with just a sheet of paper, will help you organize the key ideas for your eCommerce and determine the value offer that it will represent for your potential customers, that is, what you are going to sell, to whom you will sell it, and what do you need to sell it.

Canvas model blocks

As you can see, the concept of the canvas model is extremely simple, in fact you can print or create it and use sticky notes to complete each box, or change the ideas as your eCommerce evolves. Its 9 blocks are:

1. Clients

The customers are the heart of all eCommerce, so it is essential that properly segmentes different targets you want to achieve with your product or service. Describe their characteristics, such as geographic location, likes, hobbies, gender, age, even income, beliefs or life goals.

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The more information you have about your target audience, the better you can establish communication and relationship with them, and of course, the more likely it is that you have more than one type of client.

2. Value proposition

Your product or service must be focused on solving a problem or filling a need of your potential customers . read more

In the value proposition you must describe exactly the value that your product will give them, why it is important and how it will improve the lives of your customers.

This field is very important as it will give you the reason why your target audience will be attracted to your business . Think about what makes you unique, and how you will specifically serve each of the potential customer segments.

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3. Distribution channels

You already have your potential clients defined, your value proposition, and now you have to think about how to reach them and send them the message .

Channels will be the methods you will use to make yourself known, some examples include social networks , blogs , advertising, events, etc. However, all of them will depend on your target audience.

You should carry out research on the channels that your potential customers visit most frequently, in addition to measuring and reporting the performance of each one in the long term in order to determine which ones are most effective.

4. Customer relations

In this section you should think about how long the relationship with your customers lasts, that is, if they will only buy your product or service once or will be regular customers .

In addition, being eCommerce, your customers do not have a direct relationship with the staff or seller, so you must answer if the technology you have to communicate with them is sufficient. Thoroughly analyze the relationship you have with your customers, identify the value they have and take clear actions to improve it.

5. Income stream

This section is devoted to describing where the income comes from and how much each customer pays. Think about how much you can charge but still keep customers happy and eager to come back for more. Add each of the parts (sales, commissions, licenses, etc.) to see your total income.

With the canvas model you can visualize all the key elements for a successful #eCommerce

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6. Key resources

In this section, you must describe the physical or digital assets that your eCommerce needs to function , for example, if your products are physical, you will need to add the logistics system, taxes, personnel, design, hosting, among others.

7. Key Partners

Most companies (including eCommerce) require external partners to function well . These partners include suppliers, manufacturers, sponsors, among others. List all your strategic alliances to get more resources.

8. Key activities

Here you will describe the most important activities of the daily work carried out by your team to sell your product or service, for example managing orders, carrying out customer service actions either through chats or emails, among others.

9. Costs

How much will your key resources and activities cost? Are these costs fixed or variable? It is important to know 100% of each of your costs in order to plan your business. Know exactly how much money it will take to manage your eCommerce, and the minimum income you should receive from time to time (weekly or monthly, for example) to keep your virtual doors open

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