And so we're in the last piece in detail is what gain are you creating.

Another key component of understanding customers is understanding customer gains, which is a fancy way for saying what are the benefits that customers expect, or desires, so besides the jobs they want to get done what do they want to gain by using your product or service?

Is it saving money, saving effort, saving time, and what do they expect, and what would go beyond their expectations?

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.

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.

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.

This is essentially the flip version of the gains.

And this is a common mistake.

The answer is product market fit finding the right balance between the minimum level of viable product and the customer archetypes.

The last example is a personal one. I was buying a car and I thought how simple could that be.

To be what you want me to be?

To be what you want me to be

look like. What is it that you are doing.

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

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

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

This helps you avoid building products no one wants, and it maximizes the learning per time spent on the product and on customers.

Now we keep using the words get, keep, and grow, but this get, keep, and grow actually refers to human beings not just random ideas.

In particular, because the idea is that if you analyze the data, that data will tell you something about your customers and then you can better serve your customers and then your profits will go higher.

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.

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.

have breakfast with them... do whatever it takes to familiarize them with our packages.

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

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.

And when you finally, finally think you do have something that matches customer needs, you get to the next step, which is customer validation.

You said Look. I got this 200.

And the goal of all this is to actually define the customer persona or archetype, which is just a fancy way for saying

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

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,

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

Now, the last piece in understanding customer segments is understanding their pains.

So these are about changes in how people work and live and interact and what they expect, and these are very different than technology insights.

So this ends up to be an interesting calculation.

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

We can count on her.

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

Regulation needs to change. Platforms need to become cheaper.

Like a zillion times

What are the benefits the customer expects, desires or surprise about.

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

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

The other thing that we're interested in doing if you remember in customer segments is understanding a day in the life of a customer.

And ultimately can they grow their customer base?

And here is why so imagine if you are losing 5 of your customers a month, well in 3 years you'll only have about 16 of them left, but imagine if you can reduce churn to 1 , so that every month only 1 of these customers left.