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

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?

He has managed to secure several accounts.

look like. What is it that you are doing.

Well getting customers is just like it sounds.

Let's take a look at now the web mobile funnel.

And referrals basically generates this outer viral loop.

Then as we talked about earlier, how much will it cost to acquire a customer?

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

If we now do the math, we can now see it cost me 100 to acquire one paying customer.

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

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.

I want to know what the driver is.

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.

Seems intuitively obvious but what you want to make sure is the amount of money you're collecting over here is bigger than the customer acquisition cost to remember the amount of money you're spending from here to here.

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

Why would they do this? 'Cos they were going to lose 31 a year?

First one is we got to acquire customers and then we activate them.

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.

I want to use and on the web, I might be paying Google forever.

Let's do an exercise and see what it feels like and how does it work to get an activated customer and how much it cost.

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.

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 so they figure out how to sell existing customers more products.

Today, we're going to be talking about customer relationships.

The answers are get, keep, and grow are the three parts of customer relationships.

And so let's look at both of these get, keep and grow for physical and web mobile channels in a little more detail.

So what are some of the balancing acts?

How much did it cost them to take a test drive of your car or fly your airline?

Keep just like it sounds.

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

But for you to be a successful company and actually thinking about how much you could spend on them over here, you need to understand can I get them to spend more and more over time and how to keep them

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.

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?

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

What you need to do is have an opinion based on some fact that gets refined.

A start up is a temporary organization and what are you suppose to be doing?

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

We talked about value proposition, we talked about customer segments, we talked about channels, but today we're going to focus on customer relationships.

In a non perfect world, you might just be a user and I'm going to monetize you by getting pairs to pay for the fact that I have lots of users, but acquisition that is acquire, and activation is a 2 parts strategy.

Customer relationships is kind of a fourth piece, and customer relationship has a really interesting interaction with these other three pieces.

He might have only used it two or three or four times. and you don't have the customer acquisition cost because you already acquired that customer.

If you could do in physical channels, telesales or inside sales versus having a direct sales force,

Now let's go to month 3.