Our new contacts will give us access to bluechip clients, national governments...

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

It's a big idea.

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.

The next thing is revenue streams.

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

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

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

We talked about value proposition, we talked about customer segments, we talked about channels, but today we're going to focus on customer relationships.

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

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

Again the only way to figure this out is being able to interact with tens or hundreds or thousands of customers so you finally understand what the right revenue streams and revenue model is.

Most of my clients are married.

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

But now the teaching team is actually writing down what you think of each one of the teams.

Apple is one of the few, truly cares.

Because you'll ask So, I explained it to you like this. How could I have said it better?

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.

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

look happened.

What we now know is that the founders need to run what's called the customer development team.

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.

We go out of business typically not because we didn't deliver a product.

I couldn't come up with any ideas.

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

Instead of pricing based on cost,

Many companies have huge databases of customer information.

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

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

You cater an event where the cost to you was 200

I have no idea where my husband is.

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.

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

I remember when Gottfrid said

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.

In an existing market, if customers react to your hypothesis that what they needed was higher performance and you are correct, this is your revenue curve.

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.

Show them the grumpy employees.

It's not all about your technology. Your technology is just part of the value proposition.