You've now sold these customers way back here under purchased, and you've kept them around with relative programs and product updates, but really what you'd like to do, understanding now that it's a lot cheaper to sell existing customers more stuff than it is to get new customers, is let's go try to sell them some stuff, and how can we do that.

Then again for your revenue stream.

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

When you're thinking about growing customers, nothing magic.

Sell, sell, sell.

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?

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.

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

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

This was a startup killer for decades.

Credit companies send their customers monthly bills.

The new model will retail for 30,000 yen.

And so this is what this looks like.

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

That machine is, today, about as fast as my iPhone.

What do you sell?

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

So dealers might not have a physical storefront for end user customers, but retailers are all about main street and talking to your customers.

But this is, of course, an optimistic scenario. Let's think of other scenarios.

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 first started distributing and making physical products cars, food, utilities, etc. and we distributed them through direct sales force that is people you shook hands with, look in the eye and met.

There is a type of startup in what we call a new market, and we'll be describing new markets in the Customer Segments lecture.

And their value proposition, as even they realized later, was pretty unclear.

The stock they sold buyers was a lemon.

I'm offering you the opportunity of a lifetime... a new car dealership.

Let me say it again, waterfall development assumes you understand the customer problem and need on day one.

The products are sold on a world scale.

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

You are going to start thinking about, well, if I have a direct sales force, how much can they sell in dollars, or if I'm using an indirect channel, what's realistic number they sell for other customers?

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.

Sold

PHOTO RELEASE

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

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

The company plans to sell the new product for 1,000.

My dad sells tractors.

Many companies have huge databases of customer information.

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

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

Instead of pricing based on cost,

You cater an event where the cost to you was 200

I have no idea where my husband is.

We call it a select opportunity .

This is the PC guy over here.

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