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?

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

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

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

Again, your CAC declines. The idea is what can you do to make this very efficient?

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

For new customers, the store offers a one time discount of 3.

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

Many companies have huge databases of customer information.

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

That's how much a regular customer would have to pay.

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.

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

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

Why do you want to think about keeping customers is that customers are a lot more expensive to acquire over here than they are to keep.

Apple is one of the few, truly cares.

We got customers, acquired them, and activated them.

As we said earlier, you know now your customer segment's perception of the value of your value prop.

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.

So what we could do if we wanted to make this a little bit fancier, we could say that a new customer would pay and then we can say that's y, so y is equal to 0.29x minus 3 if x is greater than 10, if the guy or the gal orders more than 10 photos.

And since the enthusiastic new d a has Put all my competitors out of business..

But just understand that in new markets of course you don't get out and ask people what features they need.

It is still, in most places, a gray or black box, and it looks the same.

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.

Next, they got out of the building again.

Here's your client list.

This helps you avoid building products no one wants, and it maximizes the learning per time spent on the product and on customers.

So now they're looking at industrial enzyme manufacturers, their key activities are R amp D, and production support is their next change.

And here is why so imagine if you are losing 5 of your customers a month, well in 3 years you'll only have about 16 of them left, but imagine if you can reduce churn to 1 , so that every month only 1 of these customers left.

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.

Let's go to month two

After 36 months with 1 attrition, you'd have 70 of your customers left.

JU That's a good question, and we ask ourselves that every day.

Many of our clients are AfricanAmerican.

We have recently accepted a client who is VampireAmerican.

A tech company's one of my clients.

Most of my clients are married.

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

It's a big idea.

That's your job as the facilitator and coach.

We've got customers.

Who do you do that for?