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

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?

You know, 20 years ago, some of the most amazing brands were built in the early days of cable, that met these new niche content demands from consumers.

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.

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.

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.

If we talk about an actual quantity, we should say the quantity demanded.

If they read newspapers, tech journals, or listen to radio or television, that is I want to match my demand creation activities to what I know about my archetype.

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

Apple is one of the few, truly cares.

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

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.

Let me write that in green.

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

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

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, 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,

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

In a web or mobile product, instead of building a physical prototype, you need to have a low fidelity app or website available for customer feedback.

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.

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.

It isn't so much the money supply, although the money supply will have an effect, it's really capacity utilization.

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

If we lower the price of a product, that will raise the quantity demanded of that product.

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

Well, remember this was to acquire a customer.

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

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.

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.