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

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

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

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

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.

They strive constantly to improve customer relations.

The answers are get, keep, and grow are the three parts of customer relationships.

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

And for web, mobile or cloud, we were getting you into the funnel on the bottom.

Customer relationships is kind of a fourth piece, and customer relationship has a really interesting interaction with these other three pieces.

So now they're looking at industrial enzyme manufacturers, their key activities are R amp D, and production support is their next change.

So again let's use our Jersey Square team as an example of what customer relationships might

We all work on little laptops and try to move desks to change the way we think.

Let's take a look at now the web mobile funnel.

Nobody wants the U.S. monetary authority to check their relationship, to monitor their relationship with their clientele.

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

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?

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

Who do you do that for?

How do they currently buy and what's the revenue stream that's associated with these kind of pricing tactics?

And so the lesson is this it doesn't really matter what you're selling you just have to think about who is your customer, and what are the messages that are going to get them to change their behavior.

He's not the client.

And that's what effect size means. It's just what's the magnitude of the effect?

Another example of a customer segment was someone making new kite boarding equipment.

Here's your client list.

Just as a reminder, what the teams will be starting with in Week 1 is filling out the business model canvas and getting out of the building and testing their hypotheses about the value proposition, customer segments, and channel.

So, if we take a look at the Jersey² team was worrying about, it's what most start ups worry about on day 1, is does my value prop match my customer segment, and do I have product market fit?

But in most teams if they are technology driven, they tend to start on value prop and most teams if they happen to be marketers or business people, happen to start with the customer segments.

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

Again, your CAC declines. The idea is what can you do to make this very efficient?

So today, while we're talking about value proposition, value proposition works hand in hand with who your customers are, which we'll be talking about in the next lecture.

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

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.

What is the competition? What are they charging?

It doesn't matter if your arms are strong enough to catch her body without breaking your bones.

This is bullshit, come on.