The customer development process is actually a 4 step process.

Pricing is kind of the tactics.

So why don't we hire business development people to do partnerships.

Picking up a package, delivering it to our client.

Defense department's largest contractor.

The only fallacy in this is that you assume that your first customers are going to be in the mainstream.

What's the sum of all the revenue from day 1 purchase, so you're keeping them through all the grow activities you're undertaking.

Done. Last page has Bowman's clients from the U.S.

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

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

And part of those steps were alpha test, beta test, and first customer ship, and you'd be shipping and telling customers, Here's a buggy, unfinished product.

Our first customer is a man named Vector.

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?

Two, I've tried it. I've tried at Sciant.

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

So at first customership we could look like a large company for mainstream customers.

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

But you know what? I might know something that my competitors don't know.

Show them the grumpy employees.

Now, this makes sense when you're in a large company releasing version 2.0, 3.0 and 4.0 because you kind of have a feeling of who the customers are and what they need, so a product manager can be pretty accurate about

Many companies have huge databases of customer information.

First stop of the day. Just you and me, kid.

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

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.

Potential customers have been listed.

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.

It assumes you will be going through this multiple times.

Apple is one of the few, truly cares.

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.

One of the really interesting developments about this class is this whole customer development process.

So in the last lecture, you remember the business model canvas, all the 9 components of a startup.

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

Press CYCLE START and the spindle will begin turning at 500 rpm

Next, they got out of the building again.

Here's your client list.

The goal was not to use this process to find all the bugs though they might come up.

If x tests were all the way out there, then we would call that an anomaly.

For example, in SAS software, some investors think that number should be 3 gt 1.

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.

Let's go to month two

That is they were beginning with a series of hypothesis about their customer archetype.

What could be everything?