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

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

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

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

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

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

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

You cater an event where the cost to you was 200

Who are your key partners and suppliers?

They need to understand the external environment and they need to come in.

I can't emphasize enough that the business model canvas is just a start.

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

Again, your CAC declines. The idea is what can you do to make this very efficient?

Then again for your revenue stream.

Many companies have huge databases of customer information.

That's your job as the facilitator and coach.

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.

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

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.

Instead of pricing based on cost,

I have no idea where my husband is.

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.

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.

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.

Well, remember this was to acquire a customer.

Apple is one of the few, truly cares.

This last step is growing customers for the web mobile channels.

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

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

Next, they got out of the building again.

Here's your client list.

Wow, who's this! Brother Sosam!

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.

You're all familiar with the business model canvas.

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

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.

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

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

Just as a reminder, what the teams will be starting with in Week 1 is filling out the business model canvas and getting out of the building and testing their hypotheses about the value proposition, customer segments, and channel.

He found out emerson's client was dubaku.

So, if we take a look at the Jersey² team was worrying about, it's what most start ups worry about on day 1, is does my value prop match my customer segment, and do I have product market fit?

JU That's a good question, and we ask ourselves that every day.