I have told you how to treat customers.

They could tell you that I want bigger, faster, cheaper status quo.

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?

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

He's not the client.

Now let's go to month 3.

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.

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

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

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.

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.

So the impact of all this has been essentially one of growing the market, because it focused on the non customer, and then by reaching the unreached, we're able to significantly grow the market.

He cheated his clients out of a lot of money.

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.

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

So let's follow our Jersey Square team and see what they did with customer segments.

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.

I have no idea where my husband is.

We have recently accepted a client who is VampireAmerican.

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.

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,

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

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

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.

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

We will take it to the potential customers.

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

The pivot was a term that my best student ever Eric Reese coined when he noticed the arrow between customer validation and customer discovery, and he actually gave it a name, which I think is incredibly accurate.

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

And in this class, we're going to be talking about the first two steps, customer discovery, customer validation, the pivots that connect them, and then a few that are lucky.

And we found after much research that actually not much research, quite simple research that the counterfeit customer was not our customer.

Apple is one of the few, truly cares.

And when you finally, finally think you do have something that matches customer needs, you get to the next step, which is customer validation.

What am I going to look at?

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.

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

Let's go to month two

So we've done no catering this month but we've gotten a lot of money

Let's just take a look at quickly a web example in getting customers, you're going to be o worrying about how do I acquire them that is how do I get them even to my website, how do I activate them that is how do I make them do something, and then later on we'll see after I got them how do I keep them around that is how do I not lose them through attrition and churn and then what can I do once I have customers to make them spend more money or use my product even more.

He has managed to secure several accounts.

If in fact, your conversion rate between acquisition activation could be increased.

We all work on little laptops and try to move desks to change the way we think.

The first step is customer discovery.

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?