So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

Defense department's largest contractor.

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.

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.

Many of our clients are AfricanAmerican.

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

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

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

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?

As I'm sure you know, Mr. Horn was our most important client.

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

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

Who do you do that for?

And number 4. Access to customers.

The answer is simple math.

Most of my clients are married.

He's not the client.

It's not all about your technology. Your technology is just part of the value proposition.

We have recently accepted a client who is VampireAmerican.

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.

He cheated his clients out of a lot of money.

Even though on day 1 you're not thinking about keeping customers because you're desperately worried about getting them, just understand the next thing you're going to be doing is worrying about how to keep your most valuable customer.

I want to build my corporate site to attract customers.

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.

Here's your client list.

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

What you need to do is have an opinion based on some fact that gets refined.

But just understand that in new markets of course you don't get out and ask people what features they need.

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

Instead of pricing based on cost,

Many companies have huge databases of customer information.

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

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

You cater an event where the cost to you was 200

I have no idea where my husband is.

Another great example is Fidelity.

And after two days, you have activated 20 customers.

The answer is product market fit finding the right balance between the minimum level of viable product and the customer archetypes.

Because you'll ask So, I explained it to you like this. How could I have said it better?

We talked about value proposition, we talked about customer segments, we talked about channels, but today we're going to focus on customer relationships.

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

It's a big idea.

Apple is one of the few, truly cares.