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

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?

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

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.

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

This was a startup killer for decades.

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.

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

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

We have recently accepted a client who is VampireAmerican.

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.

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.

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,

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?

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.

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

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.

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

Remember what we were trying to do in the initial purchase or get your new customers to start telling their friends about your products, you want to do the same thing after you've had those customers for a while.

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

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.

We will take it to the potential 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.

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.

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

How do you know which one to use?

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

Well getting customers is just like it sounds.

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

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

And we found after much research that actually not much research, quite simple research that the counterfeit customer was not our customer.

Now let's go to month 3.

If in fact, your conversion rate between acquisition activation could be increased.

And they say that the new customer gets a one time discount of 3.

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?

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.

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.

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

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.

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

So the impact of all this has been essentially one of growing the market, because it focused on the non customer, and then by reaching the unreached, we're able to significantly grow the market.

He cheated his clients out of a lot of money.

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

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