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.

It's a big idea.

We will take it to the potential customers.

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

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.

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

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

Now let's go to month 3.

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.

Earlier we looked at the 4 phases of the entire customer development process, but now let's take a look at the customer discovery process itself and order its phases.

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

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

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

And they love to tell you, Oh, it's about 10 percent, proudly.

We have recently accepted a client who is VampireAmerican.

I have no idea where my husband is.

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.

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

They love to tell you, It's about 10 percent, proudly.

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

And the goal of all this is to actually define the customer persona or archetype, which is just a fancy way for saying

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

Pricing is kind of the tactics.

Apple is one of the few, truly cares.

But the next step is you get out of the building.

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,

And while it might be, quote, a beta product, we never use that word.

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.

long term, and what are you going to do to grow them in the next couple of years as we.

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.

Let's do an exercise and see what it feels like and how does it work to get an activated customer and how much it cost.

We got customers, acquired them, and activated them.

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

And after two days, you have activated 20 customers.

But Mr. Wallace, I'll need at least a week in Cleveland to visit all my accounts.

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

Now, what's really interesting is in the web mobile funnel the getting customers part of the funnel is actually quite simple, at least on first glance.

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.

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.

Well getting customers is just like it sounds.

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.