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

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?

That's a gentlemen's club. I told you about it. The Singapore clients come to the city, they love that crap.

I want them to either pay for the product or sign up for something and become a user.

Now, to date, the diamond industry has always targeted men, sending the message that the woman needs the man to buy her the rock.

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.

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

Well getting customers is just like it sounds.

You can connect with stakeholders like the manufacturers and talk with them face to face and leverage their

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

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

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.

Many companies have huge databases of customer information.

Another example of a customer segment was someone making new kite boarding equipment.

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

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.

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

If you have world's most perfect business model, investors would love to see this number much bigger than this number and so what you want to look for is a well balanced model that takes into account how much you need to acquire customers but how much ultimately you'll extract from them over the lifetime.

And as an economist, we can also look at that side of the story. These are people who are productive agents in the economy.

Apple is one of the few, truly cares.

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

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.

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,

Sometimes for an hour or two, then we catch a bit of a lecture.

I want to use and on the web, I might be paying Google forever.

And instead of putting that 400 in cash, because you didn't get the cash you can't do that,

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.

Well, hopefully it gets kind of fun because the real metric the way we kind of measure things, the language we use on the web is customer acquisition cost.

At the end of the day, not only do you know about the pains and gains of these customers, but you specifically know who they are.

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

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.

Just smart people moving bits. Different rules.

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.