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

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

They run something called the loyalty programs.

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.

What are all the pieces? Well let's take a look.

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 this start up is on the road to actually building something that customers might want.

The next is channels.

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

In fact, every major household name is allowing you to interact with their products on a daily basis all the way from Smart Cars to Prada to Ray Ban, for example.

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

You could charge twice the current rate for what I provide, and your customers would pay it.

Who are your key partners and suppliers?

And product market fit just simply says what is the match between what you are building and what customers need and want, and who are those customers.

Next, they got out of the building again.

Those children are potential customers.

In particular, because the idea is that if you analyze the data, that data will tell you something about your customers and then you can better serve your customers and then your profits will go higher.

They attract customers by offering high quality goods.

More than likely we'll make money from royalties and commercial licensing, etc.

You're all familiar with the business model canvas.

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

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

That is they were beginning with a series of hypothesis about their customer archetype.

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

Why you're doing all this is to define the minimum viable product, or sometimes called the MVP for short.

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.

Apple is one of the few, truly cares.

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

Remember what we were trying to do in the initial purchase or get your new customers to start telling their friends about your products, you want to do the same thing after you've had those customers for a while.

Well, he went to prison to protect a client.

They give better service not worse, but better.

I used beer crates as a foundation.

Many companies have huge databases of customer information.

Here's your client list.

So in month 1 you cater an even where the cost to you was 100

A photo finishing store charges customers a rate of 0.29 per photo to print pictures.

You know, revenue stream.

So again you could start either with customer segments or you could start with a product and value prop itself, it really doesn t matter.

Instead of pricing based on cost,

You cater an event where the cost to you was 200

I have no idea where my husband is.

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, what s interesting is if you remember value proposition describes not only the features but also the pains and gains that they see, that they ve actually craved for the customer and that the goal is to figure out what the MVP is.

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.