Pricing is kind of the tactics.

The customer development process is actually a 4 step process.

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.

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

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

Defense department's largest contractor.

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.

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

We will take it to the potential customers.

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

A asset is anything someone owes you some future benefit.

Potential customers have been listed.

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

Why you're doing all this is to define the minimum viable product, or sometimes called the MVP for short.

And he's unclear following that van that's out in front of him.

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

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?

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

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

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.

One of the most important metrics to think about now that we have an end to end funnel is something called lifetime value and a lifetime value LTV is not your lifetime but your customer's lifetime.

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

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

And the idea is to get as many people as we can to come out to Caine's Arcade, and just make his day. Caine is dying to have one customer show up to his arcade.

Another common paid activity is advertising. What kind of advertising?

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

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

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

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

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

We have recently accepted a client who is VampireAmerican.

I have no idea where my husband is.

I want them to either pay for the product or sign up for something and become a user.

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.

All this extra space doesn't matter.

He was the first to come.

He came first.

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

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,

Because if you think about it, you've been working hard on value prop, and you've been working hard on customer segments and customer acquisition and activation and channel.

Our first customer is a man named Vector.

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.

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

You could say look, I performed services that will earn me 200 in the future

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