Keep the existing file

Get is how you actually acquire customers and get them to purchase your product.

Always keep the existing file

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.

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

All these right now are hypothesis, but pretty good starting points.

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.

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.

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

We got customers, acquired them, and activated them.

Most of my clients are married.

Today, we're going to be talking about 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.

They run something called the loyalty programs.

I've got a fantastic idea for an incremental innovation to an existing product we sell through existing channels to existing users, and I can guarantee you get this much return out of it over the next three years.

How we do that is the first thing we need to do is make sure our existing customers we've just gotten don't go away, and so if you're in business long enough, you'll start thinking about how to keep customers.

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

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

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

They actually learned another alternative for sports jersey owners would be a monthly subscription and also a one time rental.

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 number 4. Access to customers.

Again, a little further definition in existing market incumbents exists.

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?

You're taking market share from incumbents from day one.

And now they started to get a better understanding of what customer relationships were, about getting customers, keeping them and growing them.

Let's just take a look again if there's activities.

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

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.

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

Did you see how many clients Jane had?

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

The next step in this funnel is remember we just talked about getting customers and let's talk about keeping customers.

Apple is one of the few, truly cares.

You get 5 times more revenue from the same customers by just working on keeping these customers around.

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

The lawyer has a lot of wealthy clients.

His eyes were strange.

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

Next, they got out of the building again.

And competitors, there's many if you're wrong but very few if you're right, and your risk is that you get the market and product redefinition just wrong.

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

What is the competition? What are they charging?