sure your service isn’t missing something they think they need, or to spot
opportunities to improve the overall experience.
Business models
Establishing the relationship between your system and the surrounding service
is, in part, deciding on your business model. Put crudely, this can be
summarized in two questions: what will people pay for? And what do you
need for production to be sustainable?
What is a business model?
A business model is the blueprint for how a business creates value for
customers, and makes money. For example, a classic business model is the
‘bait and hook’ one used by printer manufacturers. They charge a relatively
low price for the initial hardware but make money on toner cartridges.
The model maps out how the business will make money, either from
increasing revenue (selling more) or decreasing costs. Increasing revenue can
be approached by:
O Generating n ew business from new customers
O Generating more business from existing customers
And even a not-for-profit organization needs a sustainable business model in
order to survive.
How do business models affect UX?
Business models shape the way users perceive the value of the service and the
fairness of pricing. This can make the product proposition more or less
appealing. Users will approach the product or service with a positive, trusting
mindset, or a more skeptical or even negative one. This sets the tone for the
rest of their interaction.
For example, the major energy companies in the UK have recently come under
pressure for perceived unfair pricing practices. All are rolling out smart energy
meters, which generate data that can be used to offer customers tips on saving
energy and therefore money. But customers who feel that prices have not been