2

Understanding the customer
and the market

Get to know your (potential) customer and what they care about

time estimation

14 hours

key outcomes

After completing Module 2, you will have a thorough understanding of the rental and resale market as well as your customer's pains and gains and jobs to be done. 
‍
Module 2 will help you to translate these key customer and market insights into an initial value proposition statement and to generate multiple creative solutions. These will be further refined into a final circular business model concept.
A

Identifying and understanding your target customer and market

1
First, familiarise yourself with the Research Wall—this is where you will be plotting all the data and insights that you gather using the below tools.
2
Start by using the Case Study Assessment Dial to take a critical look at existing rental or resale models in the market and to determine your brand's likes and dislikes. 
3
Then, use the Customer Persona to understand your potential customer—their demographics, as well as their jobs to be done, pains and gains. 
4
Take a step back and using the customer and market research gathered to date, create a preliminary Value Proposition Statement.
5
Then, validate and deepen your understanding of your customer, by conducting a series of Customer Interviews and Surveys. 
6
Finally, develop a more nuanced understanding of the market by using Expert Interviews, which will support you to validate and further refine your Value Proposition Statement.
All the tools in this step are accessible via the same Miro board

tools

Research Wall

Map, cluster and summarise research data through a visual arrangement.
3 hours and 15 min
Core team

Research Wall

Map, cluster and summarise research data through a visual arrangement.
3 hours and 15 min
Core team

Case Study Assessment Dial

Take a close and critical look at existing rental or resale models in the market and determine a list of do’s and don’ts (or likes and dislikes) that can inspire the design of your business model.
60 min
Core team

Case Study Assessment Dial

Take a close and critical look at existing rental or resale models in the market and determine a list of do’s and don’ts (or likes and dislikes) that can inspire the design of your business model.
60 min
Core team

Customer Persona

Develop a series of customer personas, representing a group of people with shared interests, common needs and/or demographic and geographical similarities.
60 min
Core team

Customer Persona

Develop a series of customer personas, representing a group of people with shared interests, common needs and/or demographic and geographical similarities.
60 min
Core team

Value Proposition Statement

Clarify how your business model creates value for your customers.
45 min
Core team

Value Proposition Statement

Clarify how your business model creates value for your customers.
45 min
Core team

Customer Interview and Survey

Develop a deeper, more nuanced understanding of your current customer, which will support you to validate and further refine your Customer Personas and your Value Proposition Statement.
2 hrs
Individual

Customer Interview and Survey

Develop a deeper, more nuanced understanding of your current customer, which will support you to validate and further refine your Customer Personas and your Value Proposition Statement.
2 hrs
Individual

Expert Interview

Develop a deeper, more nuanced understanding of the market, which will support you to validate and further refine your Value Proposition Statement.
90 min
Individual

Expert Interview

Develop a deeper, more nuanced understanding of the market, which will support you to validate and further refine your Value Proposition Statement.
90 min
Individual

RECOMMENDED READING

Changing our clothes: Why the clothing sector should adopt new business models
Read on the WRAP website
Does buying pre-loved clothing mean buying less new?
Read on the QSA Partners website
2020 fashion resale market and trend report
Read on the thredUP website
b

Generating customer and market insights

1
Start with Generating Key Insights to find meaning in your data. 
2
Then use How Might We questions to frame challenges as opportunities, which will serve as the starting point for ideation.
All the tools in this step are accessible via the same Miro board

tools

Generating Key Insights

Find meaning in your data and create a basis for ideation.
2 hrs
Core team

Generating Key Insights

Find meaning in your data and create a basis for ideation.
2 hrs
Core team

How Might We?

Frame challenges as opportunities that serve as the starting point for ideation.
60 min
Core team

How Might We?

Frame challenges as opportunities that serve as the starting point for ideation.
60 min
Core team
c

From customer and market insights to concept

1
Use the Crazy 8 and 6-part sketch tools in sequence to collaboratively and quickly generate multiple creative business model solutions.

tools

Crazy 8 and 6-part sketch

Collaboratively and quickly generate multiple creative solutions, which will be further refined into a final circular business model concept.
90 min
Core team

Crazy 8 and 6-part sketch

Collaboratively and quickly generate multiple creative solutions, which will be further refined into a final circular business model concept.
90 min
Core team

LISTEN TO HOW OTHER BRANDS DESIGNED THEIR INITIAL CONCEPT

Episode 2 of the Switching Gear podcast dives into the process of discovery and ideation. How can you put yourself in your customer’s shoes to gain insight into their pains and gains? How can you turn these insights into an initial circular business model concept?
‍
Join Asket, Lindex, ETP and Kuyichi and your hosts, Gwen Cunningham and Hélène Smits, as they reflect on their own experience learning more about their customers.

next steps

1
Getting started
2
Understanding the customer and the market
3
Prototyping your concept
4
Fine-tuning your business model
5
Piloting your business model

The Circular Toolbox is an online tool powered by Circle Economy and made possible thanks to the generous support of Laudes Foundation.

Learn more
With the support of

the toolbox

Module 1: Getting startedModule 2: Understanding the customer and marketModule 3: Prototyping your conceptModule 4: Fine-tuning your business modelModule 5: Piloting your business model

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