The five right-side blocks describe who pays you and how. They work as one chain led by the value proposition, so changing the promise changes the channel, the relationship and the way you get paid.
Read them in order. The segment is who you serve, the value proposition is what changes for them, the channel is how they find and get it, the relationship is how they deal with you over time, and the revenue stream is the shape of the money that results.
Music shows the chain moving. Both companies below served people who love music, and one change at the top moved every block under it.
Right-side block | iTunes Store, 2003 | Spotify, 2008 |
|---|---|---|
Value proposition | Buy the songs you want and keep them | Play any song, own none of them |
Channel | The iTunes app, paired with the iPod | A free app and a free tier |
Relationship | One purchase at a time | An ongoing membership |
Revenue stream | 99 cents a song | A monthly subscription, plus ads on the free tier |
Once the promise became access instead of ownership, an ongoing relationship followed, a subscription followed from that, and a free tier became a way to find the next paying member. A one-off download had no way to give itself away like that.
When you fill in your right side, write the value proposition first and then check that each block below it follows from it.
A training firm sells one-day workshops at $900 a seat. It decides its promise is now 'ongoing support as your team grows'. Which block most needs to change to match?
Revenue Streams, from a one-off seat price to a recurring fee
Customer Segments, from teams to individuals
Key Partnerships, to add a venue provider
None, because the promise is wording and the rest can stay as it is
An ongoing promise implies an ongoing relationship, and a one-off seat price does not pay for one. The revenue stream has to move towards a retainer or subscription, or the firm will be delivering support it is not paid for. The segment can stay the same; the other choices do not follow from the change.