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

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

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

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

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

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?

We will take it to the potential customers.

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.

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.

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

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.

Well getting customers is just like it sounds.

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

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.

The pivot was a term that my best student ever Eric Reese coined when he noticed the arrow between customer validation and customer discovery, and he actually gave it a name, which I think is incredibly accurate.

So think about what 2 1 6 is going to be like.

Two of his portfolio managers had taken on a new client.

Well, hopefully it gets kind of fun because the real metric the way we kind of measure things, the language we use on the web is customer acquisition cost.

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.

But later on they're thinking about what their funnel like in year two or three.

Maybe now you want to give them discounts on future purchases.

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.

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.

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.

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

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

And when you finally, finally think you do have something that matches customer needs, you get to the next step, which is customer validation.

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,

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

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?

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

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

And then grow is a neat trick that smart companies do is that they understand that it's a lot more expensive to get customers than to keep them and grow them.

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.

How do you know which one to use?

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

I have told you how to treat customers.

I have no idea where my husband is.

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.

Tektronix's new software perfectly responds to the needs of customers using logic analysers.

You always pull.

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