At clone market, the customers are possibly known because you copied an existing market

Instead of pricing based on cost,

Unexpectedly short lived code, that's pretty bad. Legacy code is actually successful, right?

Existing markets well, the customers well, they're know. We know who they are. They exist.

Did he ever mention any particular client being unhappy?

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

And what Christensen said is, What functional or social jobs are getting done?

This is where you construct your hypotheses, and you get out of the building and start testing your assumption about whether other people have the same problem or need you think they have.

Tektronix's new software perfectly responds to the needs of customers using logic analysers.

It assumes you will be going through this multiple times.

The goal was not to use this process to find all the bugs though they might come up.

You could say look, I performed services that will earn me 200 in the future

Oh, I have a great Rolodex, great set of contacts.

So there's another phrase called beautiful code and that's what we want you to build beautiful code.

The value proposition says, Hey, it's not about your ideal product, it's about solving a problem or a need for a customer.

The next piece about customer development to understand is what is it you're actually doing outside the building?

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.

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

We have recently accepted a client who is VampireAmerican.

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

And the fourth phase in customer discovery is you verify your pivot.

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

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.

It turns out that the answer is pretty specific.

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.

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

And the key thing that you want to worry about is churn or sometimes called customer attrition.

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

And so we're in the last piece in detail is what gain are you creating.

Well getting customers is just like it sounds.

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.

To write the requirements and do the design, assumes on day one you know the problem or need the customer has.

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

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

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.

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.

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,

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

Even though on day 1 you're not thinking about keeping customers because you're desperately worried about getting them, just understand the next thing you're going to be doing is worrying about how to keep your most valuable customer.

Now what's interesting is if you look at the chasm between your early adopters, your early evangelists and the mainstream market in a resegmented market this is what Moore was kind of talking about called the chasm.

Now let's go to month 3.