Next thing you need to do is to understand that

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.

That's the holy grail for entrepreneurs.

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

And when you hear the phrase product market fit, just simply visualize the canvass and go,

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.

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

And this start up is on the road to actually building something that customers might want.

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?

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.

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

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.

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

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.

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.

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?

We will take it to the potential customers.

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

What am I going to look at?

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

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.

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

Now, to date, the diamond industry has always targeted men, sending the message that the woman needs the man to buy her the rock.

You cater an event where the cost to you was 200

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.

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

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

We have recently accepted a client who is VampireAmerican.

Regulation needs to change. Platforms need to become cheaper.

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,

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.

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

That's your job as the facilitator and coach.

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

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

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

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

So the answer is for the linked in, there are two sides to this market.

The customer development process is actually a 4 step process.

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.