Membership Concept and Business Model Canvas Methodology – Armstrong

Customer Segment

  • 17-29 year olds (millenials) of all musical skill and experience levels

Value Proposition

  • Providing individualized music membership in a relaxed but engaged community of musical explorers

Customer Relationship Channels

Raise Awareness

  • Advertising geared toward high school, university, and business members
  • Online questionnaire to determine specific customer needs and design unique customer membership package (go through all possible services and benefits provided by our company)

Help customers evaluate the value proposition

  • Easy customer feedback through company website/platform which receives response daily from the company

Help customize purchase and make purchase

  • Online questionnaire to determine specific customer needs and design unique customer membership package (go through all possible services and benefits provided by our company)
  • Online payment/monthly automated payments/easy online customer management of membership package and payment
  • Staff member dedicated to working with inner-city schools

Deliver value proposition

  • Extensive online website, platforms, and services
  • Physical location(s)
  • External partnerships that benefit members
  • External partnerships that benefit company
  • Helpful and involved staff members at the physical location(s)
  • Provide instructors and equipment to inner-city schools
  • IT support staff
  • Music instruction tailored to customer needs

Provide post-purchase support

  • IT support staff
  • Helpful and involved staff at physical location(s)
  • Online support through website and platforms
  • Easy feedback and suggestion online channel
  • Instrument and composition instructors available to assist customers online

Personal assistance?

  • IT support
  • Staff at physical locations
  • Easy online communication with company (answered daily)

Dedicated personal assistance?

  • Music, instrument, and/or composition instructor

Self-service?

  • Customizing membership package and making payments online
  • Using equipment, technology, and instruments at the physical locations
  • Using the online website, platforms, and resources
  • Initiating collaboration opportunities

Automated services?

  •  Notifications regarding local events, activities, and services to which a membership discount/benefit can be used

Communities?

  • Online community facilitating connection and collaboration between members
  • Physical location providing a place for members to meet, collaborate, and socialize

Co-creation?

  • Customers create online content that can be shared via social media or on the company’s online platform
  • Submit feedback and suggestions to the company online

Revenue Streams

  • Access to instructor services (percentage of instructor fees)
  • Access to instrument rental services (percentage of instrument rental fees)
  • Access to physical location(s) and equipment
  • Physical location reservation privileges
  • Access to social and collaboration platforms
  • Access to online resources and information
  • Access to composer assistance
  • Coffee shop revenues
  • Restaurant revenues
  • Partial non-profit status tax benefits

Key Activities & Resources

  • Providing an online platform that allows consumers to communicate and connect with the company, instructors, and other members
  • Providing online resources and up to date information to consumers
  • Providing non-profit music resources and instruction to inner-city High School students
  • Providing physical location(s)  to include instruments, equipment, technology, relevant programs, food, and coffee
  • Providing personalized online music instruction to consumers
  • Providing a questionnaire to help new consumers determine their needs and custom-built membership packages

Key Partners

  • art instructors
  • art galleries
  • concert venues
  • recording studios
  • instrument rental companies
  • location lessor(s)
  • technology and program providers
  • web and online platform developers and designers
  • social media entities (Facebook, Pinterest, Twitter, etc.)
  • inner city schools
  • security and entry systems company
  • online music instructors
  • CRM system providers
  • LLP funding for instructor fees and building of online platform and services
  • bank funding for physical location and equipment

Cost Structure

Blue Ocean strategy: eliminating high costs typically associated with the music services industry while creating superior value for customers in new ways.

Fixed costs

  • lease payments for physical location(s)
  • instrument and equipment repair and updates at physical location(s)
  • staff members to coordinate with inner-city schools, generate and maintain online resources and information, provide food and beverage services, manage the front desk, manage customer support at physical location(s), IT support
  • security and entry system
  • CRM system
  • equipment for food and beverage services
  • technology and relevant software programs

Variable costs

  • web developers and designers
  • in-kind benefits and discounts provided to external partners that provide value and benefits to our members
  • instructor fees for instruction provided plus equipment and training to provide high quality online instruction
  • food and beverage ingredients

Economies of scale

  • more membership payments cover fixed costs for lease payment(s), instrument and equipment repair and updates, security and entry system, CRM system, equipment for food and beverage services, and technology and relevant software programs
  • more members create greater bargaining strength when trading in-kind benefits and discounts with external partners
  • more members interested in instruction attract more skilled and committed instructors
  • more members purchasing food and beverages at physical location(s) can mean lower rates when purchasing bulk ingredients

Economies of scope

  • web development and design costs less when more services and benefits are combined into existing platforms and sites
  • more locations leads to more convenience leads to more demand and more opportunities to use the same marketing materials/approach in multiple geographic areas
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