But they're asking us a first time, a new customer.

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

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

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

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.

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?

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

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

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

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

He's not the client.

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

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.

And since the enthusiastic new d a has Put all my competitors out of business..

I have told you how to treat customers.

We will take it to the potential customers.

What we now know is that the founders need to run what's called the customer development team.

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

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

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.

You cater an event where the cost to you was 200

I have no idea where my husband is.

We still have earned and paid media driving customers into the funnel.

What product or service are you building?

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

We have recently accepted a client who is VampireAmerican.

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

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

New customers.

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.

It's a big idea.

Apple is one of the few, truly cares.

That's your job as the facilitator and coach.

We've got customers.

Who do you do that for?

Defense department's largest contractor.

As we'll see, customer relationships start with get.

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.

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.