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.

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.

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

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

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.

You cater an event where the cost to you was 200

But Mr. Wallace, I'll need at least a week in Cleveland to visit all my accounts.

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.

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.

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.

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?

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.

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.

The customer development process is actually a 4 step process.

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

And number 4. Access to customers.

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

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

And so they figure out how to sell existing customers more products.

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

Many companies have huge databases of customer information.

The other thing that we're interested in doing if you remember in customer segments is understanding a day in the life of a customer.

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

This last step is growing customers for the web mobile channels.

And this is a common mistake.

What's most important to us when we make a video is what the customer sees.

Notice by the way, while they were working on value proposition, they also had some hypothesis about the customer segments.

Instead of pricing based on cost,

We have recently accepted a client who is VampireAmerican.

Let's take a look at the next step in searching for a business model, and that's customer validation.

It's a big idea.

So the answer is for the linked in, there are two sides to this market.

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

Regulation needs to change. Platforms need to become cheaper.

And unless you're in an existing market and you happen to know which features the customers have told you are more important.

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.

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.

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,

It's exactly the same idea we might want to offer loyalty programs, contests and events, blogs, RSS and email, or social media all designed to engage customers.

If we now do the math, we can now see it cost me 100 to acquire one paying customer.

Wouldn't it be great if you could get your hands on some of it somehow?