The Business Model Canvas
Select "1: Customer Segments" to start learning about the BMC!
Customer Segments
Customer Segments
What is a customer segment?
Select the icons to the left to learn more.
- Who are their customers or customer segments,
- What are those customers’ needs or pain points?
Think about who your customer serves every day. Understanding who their customers are helps you see where their pressure points and opportunities come from.
Think about who your customer serves every day. Understanding who their customers are helps you see where their pressure points and opportunities come from.
Explanation
Pain Points
Example
Next
The Business Model Canvas
Customer Segments
Value Propositions
Value Propositions
Select the icons to the left to learn more.
- What value does the customer deliver to each segment?
- How does this evolve over time?
Consider why people buy from your customer instead of a competitor. What unique benefit or promise do they deliver?
Explanation
Example
Next
The Business Model Canvas
Customer Segments
Value Propositions
Customer Relationships
Channels
Customer Relationships & Channels
Select the icons to the left to learn more.
- How do they market and support their customers?
- Which channels does the customer use to distribute and sell their product or service?
Look at how your customer reaches and interacts with buyers, both before and after the sale.
Explanation
Example
Next
The Business Model Canvas
Customer Segments
Value Propositions
Customer Relationships
Channels
Key Activities
Key Resources
Key Activities & Resources
Select the icons to the left to learn more.
- What processes make them effective and different?
- What of their assets are essential for them to deliver value?
Every business has differentiators that set them apart from their competition. Identifying these essentials shows you what keeps the business running and where its strengths lie.
Explanation
Example
Next
The Business Model Canvas
Customer Segments
Value Propositions
Key Partners
Customer Relationships
Channels
Key Activities
Key Resources
Key Partners
Select the icons to the left to learn more.
Which outside partnerships help them succeed?
Few businesses succeed alone. Who does your customer rely on for supplies, services, or expertise?
Explanation
Example
Next
The Business Model Canvas
Customer Segments
Value Propositions
Key Partners
Customer Relationships
Channels
Key Activities
Key Resources
Cost Structure
Cost Structure
Select the icons to the left to learn more.
- What type of business does the company operate?
- What drives their costs and cash management?
Every business has major expenses that shape its strategy. Identifying these helps you understand their constraints and priorities.
Explanation
Example
Next
The Business Model Canvas
Customer Segments
Value Propositions
Key Partners
Customer Relationships
Channels
Key Activities
Key Resources
Cost Structure
Revenue Streams
Revenue Streams
Select the icons to the left to learn more.
How do they earn money?
Look at where their revenue actually comes from. Understanding which segments generate the most income, and which are growing or declining, shows you where the customer is focused and where they may feel pressure.
Explanation
Example
Next
Great work!
You've completed this exercise. You can select the button below to start over, or continue with the course.
Start over
Participant Guide Activity
Write down the ways your customer connects with their customers. What are the strategies your customer uses to engage the different channels?
Next
Participant Guide Activity
List the external partners you customer depends on most. Where do these partnerships give them an edge, or create vulnerabilities?
Next
Participant Guide Activity
Choose one of your customer accounts. Write down in your practice BMC who their customer segments are, and list as many of their pain points as you are aware of.
Note: Don’t worry if you can’t answer every question right now. The BMC isn’t about perfection, it’s about clarity. Knowing where your knowledge gaps are is just as valuable as filling in the boxes. Those gaps tell you:
- What research you still need to do, and
- What questions might guide your next customer conversation.
Tip: Avoid “interrogating” your customer. Instead, use these gaps as a way to guide natural discussions or plan your meeting agenda.
Next
What is a customer segment?
A customer segment is a group of customers with shared characteristics, such as needs, behaviors, purchasing trends, or how they use a product.
For example, a wholesale club might serve multiple customer segments, such as families purchasing in bulk for household savings and small business owners buying large quantities to keep costs down.
For the wholesale club, value propositions include low bulk pricing, one-stop convenience, and access to exclusive member deals. Families value saving money on everyday essentials, while businesses rely on the club for reliable bulk inventory.
Example
The KAP customer is a wholesale club. Their customers are families shopping for convenience, and businesses buying in bulk.
For a wholesale club, key costs include leasing and maintaining large warehouse facilities, paying staff to manage high-volume operations, investing in logistics and distribution, and funding member acquisition programs like marketing and loyalty rewards. Because margins are thin, even small changes in supply chain or labor costs can have a big impact.
Participant Guide Activity
In your guide, note the differentiating activities your customer must perform to succeed, and the resources they rely on most.
Next
Participant Guide Activity
List your customer's sources of revenue in your Participant Guide. Are they dependent on just one stream, or do they have multiple? What is the relative size of those streams compared to each other? Which streams appear most stable or most at risk?
Next
The wholesale club depends on large-scale, often well-known suppliers and manufacturers to provide bulk products at competitive prices. They also partner with logistics providers to keep inventory moving efficiently, and with financial service firms to offer member credit cards and loyalty rewards. Strategic partnerships with local producers may also help diversify their product offerings.
Participant Guide Activity
In your Participant Guide, write down the cost drivers your know about for this customer. Identify areas where you need to find more information on your customer. Which ones have the greatest impact on their business decisions?
Next
For the wholesale club, critical activities include negotiating with suppliers to ensure competitive pricing, managing high-volume inventory efficiently, and creating a consistent in-store experience. Key resources include large warehouse facilities, supplier relationships, a strong private-label brand, and a membership-based data system.
For the wholesale club, main revenue streams include membership fees, club sales, and online sales. Membership fees provide steady, predictable income, while in-club sales drive the largest share of total revenue. Online sales may have lower margines but higher growth rates with a lower cost structure.
Participant Guide Activity
In your Participant Guide, list the key value propositions your customer offers today. Note what industry or market trends impact their value proposition and how the customer is approaching those trends.
Next
The wholesale club uses membership programs, seasonal promotions, and in-store sampling to strengthen relationships with families. For business customers, they offer dedicated account managers, delivery options, and bulk-order discounts. Channels include physical warehouse stores, a growing e-commerce platform, and direct business sales.
Business Model Canvas
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Created on October 6, 2025
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Transcript
The Business Model Canvas
Select "1: Customer Segments" to start learning about the BMC!
Customer Segments
Customer Segments
What is a customer segment?
Select the icons to the left to learn more.
Think about who your customer serves every day. Understanding who their customers are helps you see where their pressure points and opportunities come from.
Think about who your customer serves every day. Understanding who their customers are helps you see where their pressure points and opportunities come from.
Explanation
Pain Points
Example
Next
The Business Model Canvas
Customer Segments
Value Propositions
Value Propositions
Select the icons to the left to learn more.
Consider why people buy from your customer instead of a competitor. What unique benefit or promise do they deliver?
Explanation
Example
Next
The Business Model Canvas
Customer Segments
Value Propositions
Customer Relationships
Channels
Customer Relationships & Channels
Select the icons to the left to learn more.
Look at how your customer reaches and interacts with buyers, both before and after the sale.
Explanation
Example
Next
The Business Model Canvas
Customer Segments
Value Propositions
Customer Relationships
Channels
Key Activities
Key Resources
Key Activities & Resources
Select the icons to the left to learn more.
Every business has differentiators that set them apart from their competition. Identifying these essentials shows you what keeps the business running and where its strengths lie.
Explanation
Example
Next
The Business Model Canvas
Customer Segments
Value Propositions
Key Partners
Customer Relationships
Channels
Key Activities
Key Resources
Key Partners
Select the icons to the left to learn more.
Which outside partnerships help them succeed?
Few businesses succeed alone. Who does your customer rely on for supplies, services, or expertise?
Explanation
Example
Next
The Business Model Canvas
Customer Segments
Value Propositions
Key Partners
Customer Relationships
Channels
Key Activities
Key Resources
Cost Structure
Cost Structure
Select the icons to the left to learn more.
Every business has major expenses that shape its strategy. Identifying these helps you understand their constraints and priorities.
Explanation
Example
Next
The Business Model Canvas
Customer Segments
Value Propositions
Key Partners
Customer Relationships
Channels
Key Activities
Key Resources
Cost Structure
Revenue Streams
Revenue Streams
Select the icons to the left to learn more.
How do they earn money?
Look at where their revenue actually comes from. Understanding which segments generate the most income, and which are growing or declining, shows you where the customer is focused and where they may feel pressure.
Explanation
Example
Next
Great work!
You've completed this exercise. You can select the button below to start over, or continue with the course.
Start over
Participant Guide Activity
Write down the ways your customer connects with their customers. What are the strategies your customer uses to engage the different channels?
Next
Participant Guide Activity
List the external partners you customer depends on most. Where do these partnerships give them an edge, or create vulnerabilities?
Next
Participant Guide Activity
Choose one of your customer accounts. Write down in your practice BMC who their customer segments are, and list as many of their pain points as you are aware of.
Note: Don’t worry if you can’t answer every question right now. The BMC isn’t about perfection, it’s about clarity. Knowing where your knowledge gaps are is just as valuable as filling in the boxes. Those gaps tell you:
Tip: Avoid “interrogating” your customer. Instead, use these gaps as a way to guide natural discussions or plan your meeting agenda.
Next
What is a customer segment?
A customer segment is a group of customers with shared characteristics, such as needs, behaviors, purchasing trends, or how they use a product.
For example, a wholesale club might serve multiple customer segments, such as families purchasing in bulk for household savings and small business owners buying large quantities to keep costs down.
For the wholesale club, value propositions include low bulk pricing, one-stop convenience, and access to exclusive member deals. Families value saving money on everyday essentials, while businesses rely on the club for reliable bulk inventory.
Example
The KAP customer is a wholesale club. Their customers are families shopping for convenience, and businesses buying in bulk.
For a wholesale club, key costs include leasing and maintaining large warehouse facilities, paying staff to manage high-volume operations, investing in logistics and distribution, and funding member acquisition programs like marketing and loyalty rewards. Because margins are thin, even small changes in supply chain or labor costs can have a big impact.
Participant Guide Activity
In your guide, note the differentiating activities your customer must perform to succeed, and the resources they rely on most.
Next
Participant Guide Activity
List your customer's sources of revenue in your Participant Guide. Are they dependent on just one stream, or do they have multiple? What is the relative size of those streams compared to each other? Which streams appear most stable or most at risk?
Next
The wholesale club depends on large-scale, often well-known suppliers and manufacturers to provide bulk products at competitive prices. They also partner with logistics providers to keep inventory moving efficiently, and with financial service firms to offer member credit cards and loyalty rewards. Strategic partnerships with local producers may also help diversify their product offerings.
Participant Guide Activity
In your Participant Guide, write down the cost drivers your know about for this customer. Identify areas where you need to find more information on your customer. Which ones have the greatest impact on their business decisions?
Next
For the wholesale club, critical activities include negotiating with suppliers to ensure competitive pricing, managing high-volume inventory efficiently, and creating a consistent in-store experience. Key resources include large warehouse facilities, supplier relationships, a strong private-label brand, and a membership-based data system.
For the wholesale club, main revenue streams include membership fees, club sales, and online sales. Membership fees provide steady, predictable income, while in-club sales drive the largest share of total revenue. Online sales may have lower margines but higher growth rates with a lower cost structure.
Participant Guide Activity
In your Participant Guide, list the key value propositions your customer offers today. Note what industry or market trends impact their value proposition and how the customer is approaching those trends.
Next
The wholesale club uses membership programs, seasonal promotions, and in-store sampling to strengthen relationships with families. For business customers, they offer dedicated account managers, delivery options, and bulk-order discounts. Channels include physical warehouse stores, a growing e-commerce platform, and direct business sales.