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.

This is really important to pay attention to, because so many people say, oh, a company made this much.

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

We care how we make our profit.

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.

And instead of putting that 400 in cash, because you didn't get the cash you can't do that,

They need to understand the external environment and they need to come in.

Let's take a look.

I wouldn't give up, I would just be going back and looking at the customer segments you are targeting and understand whether you want to build the business or have a hobby.

Is it about time saved? New efficiency created?

They buy more of your service and they tell more of their friends, which leads to more profit.

Obviously this depends whether you're selling to business customers or consumer customers, but you want to be able to make a list or a column of all the gains that they would get by using your product.

Look, I've got a fantastic idea for an embryonic product in a marginal market, with consumers we've never dealt with before, and I'm not sure it's going to have a big payoff, but it could be really, really big in the future?

We have recently accepted a client who is VampireAmerican.

Another key component of understanding customers is understanding customer gains, which is a fancy way for saying what are the benefits that customers expect, or desires, so besides the jobs they want to get done what do they want to gain by using your product or service?

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,

How do I do that as we said, earned and paid media will drive customers somehow to be looking at a place that you're at, but the next step is much harder.

You still have your shipping, cleaning and processing costs but your unit costs are now 55 and if you get 60 retention, your net for those customers who stay longer than a year is 86.

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.

Credit companies send their customers monthly bills.

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.

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 this class, we're going to be talking about the first two steps, customer discovery, customer validation, the pivots that connect them, and then a few that are lucky.

However, in the same survey, only four percent of employees agreed.

We will take it to the potential customers.

With trade, there's mutual interdependency and mutual gain between parties.

But really what they discovered is that they were actually just talking about the customer acquisition portion, or the get portion of customer relationships.

The company's profits soared.

I don't care when you get in in the morning. I don't care when you leave.

And when people talk about earnings of a company, this is what they're talking about.

And this is the profit from the operations of the company, or you could say from the assets or from the business or from the enterprise of the company.

So this ends up to be an interesting calculation.

In an existing market, if customers react to your hypothesis that what they needed was higher performance and you are correct, this is your revenue curve.

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

As shown above, it is possible to obtain ample profit and customers with truly simple know how that anyone can do!

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.

So EBlT, I kind of view that it goes backwards.

Let's assume we're doing a web company and we spent 75 cents on Google AdWords for every click that comes to our website here.

Wow, who's this! Brother Sosam!

War does have its benefits...

The value proposition says, Hey, it's not about your ideal product, it's about solving a problem or a need for a customer.

This was a startup killer for decades.

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

And now they started to get a better understanding of what customer relationships were, about getting customers, keeping them and growing them.

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