UNDERSTANDING YOUR

CUSTOMERS
ENTREPRENEURSHIP
WEEK 2

UNIVERSITAS BINA NUSANTARA

SUBJECT MATTER EXPERT

Dr. Desman Hidayat, S.Kom.,
M.M.
LEARNING OBJECTIVES

LO 1: Identify problems as opportunities

for entrepreneurial innovation.
SUBTOPICS

•Customer Segments
•Empathy Map
•User Persona
CUSTOMER SEGMENTS
CUSTOMER SEGMENTS

The Customer Segments Building Block defines the different

groups of people or organizations an enterprise aims to
reach and serve.

Customer groups represent separate segments if:

• Their needs require and justify a distinct offer.

• They are reached through different Distribution Channels.
• They require different types of relationships.
• They have substantially different profitability.
• They are willing to pay for different aspects of the offer.
DIFFERENT TYPES OF CUSTOMER SEGMENTS

Mass Niche Segmente

Market Market d

Multi-
Diversified sided
Platforms
DIFFERENT TYPES OF CUSTOMER SEGMENTS – MASS MARKET

•Business models focused on mass markets don’t

distinguish between different Customer Segments.

•The Value Propositions, Distribution Channels, and

Customer Relationships all focus on one large group of
customers with broadly similar needs and problems.

•This type of business model is often found in the

consumer electronics sector.
DIFFERENT TYPES OF CUSTOMER SEGMENTS – NICHE MARKET

•Business models targeting niche markets cater to

specific, specialized Customer Segments.

•The Value Propositions, Distribution Channels, and

Customer Relationships are all tailored to the specific
requirements of a niche market.

•Such business models are often found in supplier-buyer

relationships. For example, many car part manufacturers
depend heavily on purchases from major automobile
manufacturers.
DIFFERENT TYPES OF CUSTOMER SEGMENTS – SEGMENTED

• Some business models distinguish between market segments

with slightly different needs and problems.

• The retail arm of a bank like Credit Suisse, for example, may
distinguish between a large group of customers, each possessing
assets of up to U.S. $100,000, and a smaller group of affluent
clients, each of whose net worth exceeds U.S. $500,000. Both
segments have similar but varying needs and problems. This has
implications for the other building blocks of Credit Suisse’s business
model, such as the Value Proposition, Distribution Channels,
Customer Relationships, and Revenue streams.

• Consider Micro Precision Systems, which specializes in providing

outsourced micromechanical design and manufacturing solutions. It
serves three different Customer Segments—the watch industry, the
medical industry, and the industrial automation sector—and others
each slightly different Value Propositions.
DIFFERENT TYPES OF CUSTOMER SEGMENTS – DIVERSIFIED

•An organization with a diversified customer business

model serves two unrelated Customer Segments
with very different needs and problems.

•For example, in 2006 Amazon.com decided to diversify

its retail business by selling “cloud computing” services:
online storage space and on-demand server usage.
Thus, it started catering to a totally different Customer
Segment—Web companies—with a totally different Value
Proposition.

•The strategic rationale behind this diversification can be

found in Amazon.com’s powerful IT infrastructure, which
can be shared by its retail sales operations and the new
cloud computing service unit.
DIFFERENT TYPES OF CUSTOMER SEGMENTS – MULTI-SIDED PLATFORMS

•Some organizations serve two or more

interdependent Customer Segments.

•A credit card company, for example, needs a large base

of credit card holders and a large base of merchants who
accept those credit cards.

•Similarly, an enterprise offering a free newspaper needs

a large reader base to attract advertisers. On the other
hand, it also needs advertisers to finance production and
distribution. Both segments are required to make the
business model work.
EMPATHY MAP
EMPATHY MAP

•The Empathy Map helps you go beyond a customer’s

demographic characteristics and develop a better
understanding of environment, behavior, concerns,
and aspirations.

•Doing so allows you to devise a stronger business

model, because a customer profile guides the design of
better Value Propositions, more convenient ways to
reach customers, and more appropriate Customer
Relationships.

•Ultimately it allows you to better understand what a

customer is truly willing to pay for.
EMPATHY MAP WORKSHEET
EMPATHY MAP WORKSHEET
HOW DO WE BUILD UP EMPATHY WITH A POTENTIAL USER?
• In a first step, the user must be defined and found. Ideally, we’ll go
outside right at the beginning and meet a potential user. We
observe him, listen to him, and build up empathy.

• The insights are well documented, in the best case using photos and
videos. If you take pictures, it is important to ask permission
beforehand, because not everybody likes to be photographed or
filmed!

• A so-called empathy card can be used here that addresses the

following areas: hearing, thinking and feeling, seeing, speaking and
doing, frustration, and desire.

• We also suggest speaking to experts who know the personal well

and, of course, being active yourself and doing what the user is
doing.

• The credo is: “Walk in the shoes of a potential user!”

HOW DO WE BUILD UP EMPATHY WITH A POTENTIAL USER?

•Especially when we think we know the products or the

situation, we attempt to approach a situation like a
beginner– curious and without previous knowledge.

•Consciously and with all our senses, we go through the

experience the user is going through!

•After this “adventure,” it is useful to define hypotheses

on the team, then test them with a potential user or by
using existing data, then confirm, discard, or adapt
them.

•The picture of the persona becomes clearer and more

solid with each iteration.
USER PERSONA
WHAT IS USER PERSONA?

•A user persona is a representation of your ideal

customer.

•You’ll start the design process by conducting user

research—building empathy with your target users and
identifying exactly what they need from the product
you’re designing.

•A persona is generally based on this user research and

incorporates the needs, goals, and observed behavior
patterns of your target audience.
WHY DO YOU NEED A USER PERSONA?

• In order to solve a real user problem, you need to have a clear

problem statement in mind; in order to write this problem
statement, you first need to understand your users and their needs.

• Knowing your audience will help influence the features and design
elements you choose, thus making your product more useful. A
persona clarifies who is in your target audience by answering the
following questions:

Who is my ideal customer?

What are the current behavior patterns of my users?
What are the needs and goals of my users?
What issues and pain points do they currently face within the
given context?
WHY DO YOU NEED A USER PERSONA?

• Understanding the needs of your users is vital to developing a successful

product.

• Well-defined personas will enable you to efficiently identify and

communicate user needs.

• Personas will also help you describe the individuals who use your product,
which is essential to your overall value proposition.

• Personas help with strategizing and making smart design decisions. They
make real users memorable for the product team, helping to focus efforts
and build empathy.

• User personas are crucial if you want to design something that is

useful, desirable, and valuable to your target audience.

• Most designers work in multidisciplinary teams where it’s important to

communicate your findings from the user research stage. Personas
encompass all the essential details about your users, presenting them in a
USER PERSONA EXAMPLE 1
USER PERSONA EXAMPLE 2
USER PERSONA EXAMPLE 2
USER PERSONA EXAMPLE 2
USER PERSONA EXAMPLE 3
USER PERSONA EXAMPLE 3
USER PERSONA EXAMPLE 3
USER PERSONA EXAMPLE 3
USER PERSONA EXAMPLE 4
USER PERSONA EXAMPLE 4
USER PERSONA EXAMPLE 4
USER PERSONA EXAMPLE 4
REVIEW THE PERSONA

•To obtain initial knowledge on the user, another tool that

helps is the AEIOU method. AEIOU helps us to capture all
the events in our environment.

•AEIOU:
Activities
Environment
Interaction
Objects
User
AEIOU METHOD

Activities
• What happens?
• What are the people doing?
• What is their task?
• What activities do they carry out?
• What happens before and after?
Environment
• What does the environment look like?
• What is the nature and function of the space?

Interaction
• How do the systems interact with one another?
• Are there any interfaces?
• How do the users interact among one another?
• What constitutes the operation?
Objects
• What objects and devices are used?
• Who uses the objects and in which environment?

Users
• Who are the users?
• What role do the users play?
• Who influences them?
REFERENCES

• Lewrick, M., Link, P., & Leifer, L. (2018). The design thinking playbook:
Mindful digital transformation of teams, products, services, businesses
and ecosystems. John Wiley & Sons.
• Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a
handbook for visionaries, game changers, and challengers. John Wiley &
Sons
• Veal, R. (2023). How to Define a User Persona. Careerfoundry.
https://careerfoundry.com/en/blog/ux-design/how-to-define-a-user-
persona/
• Xplane. (n.d.). Empathy Map. Xplane.
https://xplane.com/worksheets/empathy- map-worksheet/
 THANK YOU
UNDERSTANDING YOUR CUSTOMERS
UNIVERSITAS BINA NUSANTARA

AUGUST 2024