One of the really interesting developments about this class is this whole customer development process.

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

Let's take a look at a customer acquisition process that reaches 100 people a day and activates 10 .

And for web, mobile or cloud, we were getting you into the funnel on the bottom.

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.

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.

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

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

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

Picking up a package, delivering it to our client.

It's a big idea.

Apple is one of the few, truly cares.

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.

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

We will take it to the potential customers.

The first set of things are paid demand creation activities.

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.

We need to look at the natural resources.

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

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.

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

Then as we talked about earlier, how much will it cost to acquire a customer?

Male and female and they kind of were closer to 18 30 and they were casual fans.

You always pull.

Once I understand who my archetypes or persona is, the next thing I want to figure out is how do I get them in to this funnel.

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

That's your job as the facilitator and coach.

We've got customers.

Who do you do that for?

Defense department's largest contractor.

He's not the client.

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

But in most teams if they are technology driven, they tend to start on value prop and most teams if they happen to be marketers or business people, happen to start with the customer segments.

Pricing is kind of the tactics.

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.

Month two, you get 400 from the customer in the previous month