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

You know, revenue stream.

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.

You can connect with stakeholders like the manufacturers and talk with them face to face and leverage their

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?

If the quality of your product meets with our customer's approval, we will place regular orders.

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.

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

So it's very important to them to track piracy exactly because of this, and the people who are buying, the pirates, are not their customers anyway, because their customers want the real deal.

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

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

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

And again, are you getting a viral loop and referral loop from happy and satisfied customers telling others word of mouth and so this is a balancing game, and for first time entrepreneurs who are focused here, it's really important to think about customer acquisition cost and a lifetime value.

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

In a physical channel, this requires lots of interviews, demos, and prototypes and lots of eyeball of contacts.

Many companies have huge databases of customer information.

I have told you how to treat customers.

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

So let's follow our Jersey Square team down and see what they've done for customer relationships.

Where on the other extreme, the complexity of selling toner over the web. Incredibly simple.

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

Credit companies send their customers monthly bills.

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.

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

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,

We have recently accepted a client who is VampireAmerican.

He's not the client.

All of these activities are designed to feed the sales model.

And one of the things we need to understand is what's the archetype or the persona of our customers that we're actually wanting to get and so one of the things that's kind of hard for startups is to realize that getting customers isn't some abstract idea you really need to understand who your customers are and this is not just thinking about selling to consumers.

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

Apple is one of the few, truly cares.

We will take it to the potential customers.

What we now know is that the founders need to run what's called the customer development team.

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.

Customers can name the market. Customers want or need better performance.

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

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

We still have earned and paid media driving customers into the funnel.

Next, they got out of the building again.

Here's your client list.

But a consultant told us we need to manage our clients and not service them.

What product or service are you building?