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?

not what engineering or the founders thought

Next, they got out of the building again.

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

Let's just take a look again if there's activities.

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

I have no idea where my husband is.

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.

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

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

Then as we talked about earlier, how much will it cost to acquire a customer?

One of the most important metrics to think about now that we have an end to end funnel is something called lifetime value and a lifetime value LTV is not your lifetime but your customer's lifetime.

A photo finishing store charges customers a rate of 0.29 per photo to print pictures.

Well, 0.50 10,000, that cost me 5,000, but the goal isn't to just have people visit, the goal is to get them to the end of the funnel and at the end of the funnel,

So in month 1 you cater an even where the cost to you was 100

Let's just take a look at quickly a web example in getting customers, you're going to be o worrying about how do I acquire them that is how do I get them even to my website, how do I activate them that is how do I make them do something, and then later on we'll see after I got them how do I keep them around that is how do I not lose them through attrition and churn and then what can I do once I have customers to make them spend more money or use my product even more.

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.

For new customers, the store offers a one time discount of 3.

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

Because if you think about it, you've been working hard on value prop, and you've been working hard on customer segments and customer acquisition and activation and channel.

And the goal of all this is to actually define the customer persona or archetype, which is just a fancy way for saying

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

What is it you're building and for who?

Apple is one of the few, truly cares.

So let's follow our Jersey Square team down and see what they've done for customer relationships.

There are some other things to consider in customer segments besides jobs to be done and pain and gain, and that is who's the customer?

Hopefully in the last lecture you start thinking about the cost of you channel how many customer activations, how much it will cost to get customers into my physical store or my virtual website.

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

Many companies have huge databases of customer information.

If you have world's most perfect business model, investors would love to see this number much bigger than this number and so what you want to look for is a well balanced model that takes into account how much you need to acquire customers but how much ultimately you'll extract from them over the lifetime.

That's how much a regular customer would have to pay.

Here's your client list.

It's a big idea.

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.

And number 4. Access to customers.

Instead of pricing based on cost,

You cater an event where the cost to you was 200

So it's very important to them to track piracy exactly because of this, and the people who are buying, the pirates, are not their customers anyway, because their customers want the real deal.

We have recently accepted a client who is VampireAmerican.

We got customers, acquired them, and activated them.

You know, revenue stream.

Once I understand who my archetypes or persona is, the next thing I want to figure out is how do I get them in to this funnel.

We will take it to the potential customers.

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