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

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?

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

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

They attract customers by offering high quality goods.

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

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

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

This was a startup killer for decades.

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.

Once I understand who my archetypes or persona is, the next thing I want to figure out is how do I get them in to this funnel.

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

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

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?

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.

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

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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.

You always pull.

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

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

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.

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

And, more importantly, they're well dressed.

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

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.

We will take it to the potential customers.

In business development used to mean the group that put together all the deals to create the whole product.

If you have world's most perfect business model, investors would love to see this number much bigger than this number and so what you want to look for is a well balanced model that takes into account how much you need to acquire customers but how much ultimately you'll extract from them over the lifetime.

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.

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

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

And they love to tell you, Oh, it's about 10 percent, proudly.

I want to build my corporate site to attract customers.

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

We have recently accepted a client who is VampireAmerican.

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

I have no idea where my husband is.

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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.

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.

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.