Marketing Canvas - Define your financial hypothesis

In a nutshell

When working with the Marketing Canvas, It is important to formulate your financial goal(s) as an hypothesis (Step 2). The assessment that will be done afterwards (Step 3) is measuring your ability to reach this goal without changing your current strategy. It is therefore highly important that you clarify your hypotheses

Financial hypotheses statement

FOR ACHIEVING NEXT YEAR REVENUE (……………) WHICH IS A …………… OF …………… COMPARE TO LAST YEAR, WE WILL:

• ACQUIRE …………… NEW CUSTOMERS

• LOSE ONLY …………… EXISTING CUSTOMERS

• HAVE AN AVERAGE MONTHLY TRANSACTION PER CUSTOMER OF ……………

• HAVE AN AVERAGE PRICE PER TRANSACTION OF ……………

Be clear

It is an hypotheses thus if it is not working you can revisit it. What is important is to understand how you will generate your revenues and more specifically what is different versus last year. Remember the magic revenue equation is YOUR REVENUE = THE CUSTOMERS YOU HAVE (NEW-LOST+EXISTING) x NUMBER OF TRANSACTION THEY DO PER MONTH x 12 x AVERAGE PRICE THEY PAY PER TRANSACTION.

• Will you acquire more new customers compare to last year? How much?

• Will you lose less customers than last year or more? How much?

• Will you stimulate your customers to buy more frequently? How much?

• Will you increase your average price they pay per transaction? How much?

View fullsize

Each of these elements contribute positively or negatively to your revenue goal. How prepare are you to achieve this? Do you have the right elements in place? Do you have some brakes (elements against you)?

Let me give you an example: If you want to increase by 10% your average price, it probably means that you need to justify a premium versus the competition or correct a wrong pricing (too much discount or promotions). In both case, your brand might be a brake because it is perceived cheap by your customers.

PRICE INCREASE -> ASSESSMENT: BRAND IS A BRAKE BECAUSE PERCEIVED AS CHEAP -> IDEATION: HOW CAN I CHANGE THE VALUE PERCEPTION OF MY BRAND?

Infographic

Financial hypothesis for your Marketing Canvas

Vos clients sont peut-être dangereux pour votre croissance?

Pensée du jour!

Je constate lorsque je discute innovations commerciales (provenant de nouvelles technologies ou de nouveaux modèles commerciaux) que la plupart des entreprises répondent de la même façon: c'est intéressant MAIS nos clients ne nous le demandent pas et donc nous préférons nous concentrer sur les affaires ... urgentes ... qui bien évidemment ont un impact direct sur les finances.

Oui mais ces mêmes clients demanderont un jour une réponse rapide de votre part lorsque ces innovations deviendront accessibles pour eux et à ce moment-là, il sera probablement trop tard. Ces clients chercheront une réponse rapide et plus que probablement se tourneront vers un autre fournisseur si vous n'êtes pas capable de réagir rapidement.

Si on suit cette logique, les clients seraient donc la priorité court terme et en même temps, souvent, l'ennemi de l'innovation long-terme!

Vos clients sont peut-être dangereux pour votre croissance?