Now we finally come to the last part of the business model canvas.

So on day one, these were their initial hypothesis coming into the class.

In customer relationships all the get keep grow metrics, some of which we talked about, some of which you'll discover, what were the customer acquistion costs?

And in value proposition, the goal of this is to find out that minimum viable product.

Many companies have huge databases of customer information.

By now, you're intimately familiar with the business model canvass.

As was simulated, the value proposition includes all the features of your product but also the pains and gains you're solving for the customer segment and that's where the market goes.

Now if you remember we started here on the left. We didn't earn and paid media.

They could tell you that I want bigger, faster, cheaper status quo.

Get is how you actually acquire customers and get them to purchase your product.

So, while the goal in value prop is to figure out the MVP, yes, we il see later the goal in customer segments is to figure out who and what the archetype of the customer is.

Apple is one of the few, truly cares.

We've got customers.

Defense department's largest contractor.

He's not the client.

So in our last lectures we talked about value proposition, customer segments, distribution channels, customer relationships get, keeping and growing customers.

Let's go to month two

Existing markets well, the customers well, they're know. We know who they are. They exist.

I want them to either pay for the product or sign up for something and become a user.

What we now know is that the founders need to run what's called the customer development team.

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

Instead of pricing based on cost,

So in the last lecture, you remember the business model canvas, all the 9 components of a startup.

You cater an event where the cost to you was 200

I have no idea where my husband is.

look like. What is it that you are doing.

Why would they do this? 'Cos they were going to lose 31 a year?

Who are your key partners and suppliers?

JU That's a good question, and we ask ourselves that every day.

But they're asking us a first time, a new customer.

Many of our clients are AfricanAmerican.

Most of my clients are married.

This is what I called the you should be so lucky to have this problem part of the funnel, and that's how you grow the customers you have.

Because no one, and that was a constant problem...

It's a big idea.

That's your job as the facilitator and coach.

Who do you do that for?

Why do you want to think about keeping customers is that customers are a lot more expensive to acquire over here than they are to keep.

Oh, God. One of these days I'm gonna just sort through all the Dad stuff.

So what we could do if we wanted to make this a little bit fancier, we could say that a new customer would pay and then we can say that's y, so y is equal to 0.29x minus 3 if x is greater than 10, if the guy or the gal orders more than 10 photos.

And number 4. Access to customers.

I mean how do they hear of our products, how do they know about you, and as we'll see later one of the interesting things is there are some customers that are users like in Google

And one of the things we need to understand is what's the archetype or the persona of our customers that we're actually wanting to get and so one of the things that's kind of hard for startups is to realize that getting customers isn't some abstract idea you really need to understand who your customers are and this is not just thinking about selling to consumers.

So let's follow our Jersey Square team and see what they did with customer segments.