We have recently accepted a client who is VampireAmerican.

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.

We will take it to the potential customers.

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,

So let's follow our Jersey Square team and see what they did with customer segments.

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

Let's just take a look at quickly a web example in getting customers, you're going to be o worrying about how do I acquire them that is how do I get them even to my website, how do I activate them that is how do I make them do something, and then later on we'll see after I got them how do I keep them around that is how do I not lose them through attrition and churn and then what can I do once I have customers to make them spend more money or use my product even more.

If in fact, your conversion rate between acquisition activation could be increased.

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.

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?

And in this class, we're going to be talking about the first two steps, customer discovery, customer validation, the pivots that connect them, and then a few that are lucky.

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

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

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

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

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

The pivot was a term that my best student ever Eric Reese coined when he noticed the arrow between customer validation and customer discovery, and he actually gave it a name, which I think is incredibly accurate.

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.

But for you to be a successful company and actually thinking about how much you could spend on them over here, you need to understand can I get them to spend more and more over time and how to keep them

And we found after much research that actually not much research, quite simple research that the counterfeit customer was not our customer.

Pricing is kind of the tactics.

How do you know which one to use?

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.

We all work on little laptops and try to move desks to change the way we think.

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

Well getting customers is just like it sounds.

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 the impact of all this has been essentially one of growing the market, because it focused on the non customer, and then by reaching the unreached, we're able to significantly grow the market.

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

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.

I have no idea where my husband is.

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

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

Let's take a look.

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?

Now let's go to month 3.

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.

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

You're all familiar with the business model canvas.

It's 0 otherwise.

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.

How do I do that as we said, earned and paid media will drive customers somehow to be looking at a place that you're at, but the next step is much harder.

The stock they sold buyers was a lemon.

It's exactly the same idea we might want to offer loyalty programs, contests and events, blogs, RSS and email, or social media all designed to engage customers.