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

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

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

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.

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?

So it's very important to them to track piracy exactly because of this, and the people who are buying, the pirates, are not their customers anyway, because their customers want the real deal.

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

You know, revenue stream.

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.

But a consultant told us we need to manage our clients and not service them.

Oh, God. One of these days I'm gonna just sort through all the Dad stuff.

Credit companies send their customers monthly bills.

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

Apple is one of the few, truly cares.

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

And again, are you getting a viral loop and referral loop from happy and satisfied customers telling others word of mouth and so this is a balancing game, and for first time entrepreneurs who are focused here, it's really important to think about customer acquisition cost and a lifetime value.

Next, they got out of the building again.

Many companies have huge databases of customer information.

Customers can name the market. Customers want or need better performance.

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,

He is reasonable in his demands.

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

All of these activities are designed to feed the sales model.

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.

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

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?

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.

Well, remember this was to acquire a customer.

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.

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

What's most important to us when we make a video is what the customer sees.

In a physical channel, this requires lots of interviews, demos, and prototypes and lots of eyeball of contacts.

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.

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

If the quality of your product meets with our customer's approval, we will place regular orders.

And number 4. Access to customers.

Seems intuitively obvious but what you want to make sure is the amount of money you're collecting over here is bigger than the customer acquisition cost to remember the amount of money you're spending from here to here.

Once I understand who my archetypes or persona is, the next thing I want to figure out is how do I get them in to this funnel.

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.