iLLP@Tecnico

5 – Customer

Relationships Luis Caldas de Oliveira

Agenda for Session 5

• Q&A about Revenue Model

• Team Presentations: Customer

Relationships

• Summary about Partners

• Work for Next Week

Q&A REVENUE MODEL

Important

Revenue Model ≠ Pricing

Tactic Strategy

Revenue Model

• Asset sale

Ford

• Usage fee

Vodafone

• Subscription fee

salesforce.com

• Rent

Avis

• Licensing

MS Office

• Intermediation

airbnb.com

• Advertising

Google

Revenue Model

Choices

Pricing (ways to charge)

Fixed

• Cost + profit

(product based)

• Value priced

(customer based)

• Volume priced

(encourage volume)

Dynamic

• Negotiation

(second hand)

• Yield management

(airplane ticket)

• Real-time market

(stock market)

• Auctions

(ebay)

Common Errors • Use “all-of-the-above” revenue models:

license, direct sales, affiliates, etc.

• The reason to select a specific revenue

model is unclear

• Lack of understanding of how

customers buy today.

• What do competitors charge?

• Is the profit sufficient?

Metrics that Matter • Value proposition: product cost, attainable market,

etc.;

• Customer relationships: CAC, conversion rate,

LTV, etc.

• Market type: different revenue curves;

• Cost structure: operating costs, etc.;

• Channel: channel margins, etc.;

• Revenue Streams: selling price, number of

customers, etc.;

• Burn rate: company spending per month.

TEAM PRESENTATIONS: CUSTOMER

RELATIONSHIPS

PARTNERS

Revenue Models

Key Partners

Partner

Types of Partners

Strategic Alliances

Apple + Record Labels

Joint Business

Development

Intel Inside

Coopetition

wi-fi 802.11b/g/n

Key Suppliers

Outsource suppliers:

Apple + Foxconn

Direct suppliers:

Logoplaste

Virtual Channels (web)

Expedia

Partner Relationship

Diagram

NEXT WEEK

Presentation for Next

Week • Slide 1: Cover slide

• Slide 2: Business Model Canvas (changes marked in

red, different colors for multi-sided markets)

• Slide 3: Hypotheses about revenue model strategy

and price tactics

• Slide 4: Experiments for Revenue Model and

Pricing?

• Slide 5: What are the important metrics for your

business model?

Presentation for Next

Week

• Slide 6: Rough 3-year income statement (revenues,

gross margins, significant costs, etc.)

• Slide 7-n: Lessons learned (hypotheses,

experiments, results, action)

Before Next Class

• Talk to 10-15 customers to test revenue

model and pricing (100 for web)

• Update LPC Narrative and Canvas

• Work on your MVP

• Prepare Class Presentation

• Watch Lecture 7: Partners

Obrigado