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

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

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

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

Another key component of understanding customers is understanding customer gains, which is a fancy way for saying what are the benefits that customers expect, or desires, so besides the jobs they want to get done what do they want to gain by using your product or service?

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

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

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.

Where on the other extreme, the complexity of selling toner over the web. Incredibly simple.

Let me say it again, waterfall development assumes you understand the customer problem and need on day one.

The other thing that we're interested in doing if you remember in customer segments is understanding a day in the life of a customer.

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.

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.

And our product fits right here and here's why, etc.

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.

So archetypes really helped us understand our customers, they value prop, the revenue and some of our pricing tactics.

And this is a common mistake.

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

But for you to be a successful company and actually thinking about how much you could spend on them over here, you need to understand can I get them to spend more and more over time and how to keep them

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?

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.

And this made me think that perhaps the donor agencies had just missed out on a key aspect of marketing understanding who's the audience.

Now we keep using the words get, keep, and grow, but this get, keep, and grow actually refers to human beings not just random ideas.

What you need to do is have an opinion based on some fact that gets refined.

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

If you have two or three, don't worry that's probably fine.

We have recently accepted a client who is VampireAmerican.

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

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.

So let's dive down a level deeper and first focus on what's the jobs needed to be done.

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.

It doesn't mean I won't some day, but I haven't yet.

So understanding multi sided markets are just understanding which customer segments in a 2 sided market use and which other customer segment placed.

For example Netflix you might find that there's different types of customers some that care about classic movies some of them care about modern movies and those might form hidden concepts whose discovery can really help you make better sense of the data.

One of the things that's hard for founders to realize is there's actually a customer at the other end and so while you're thinking this is the greatest thing since sliced bread the whole idea about customer development is to get you out of the building and tell me whose need or problem you're solving.

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.

Is there any way that our product or service could actually solve anything in the top 5?