Well getting customers is just like it sounds.

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 how much a regular customer would have to pay.

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

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

Now let's go to month 3.

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

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.

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.

look like. What is it that you are doing.

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.

He has managed to secure several accounts.

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

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.

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.

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.

Is it about time saved? New efficiency created?

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

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

Let's take a look.

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?

And then grow is a neat trick that smart companies do is that they understand that it's a lot more expensive to get customers than to keep them and grow them.

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

And so they figure out how to sell existing customers more products.

Today, we're going to be talking about customer relationships.

And they love to tell you, Oh, it's about 10 percent, proudly.

Let's take a look at now the web mobile funnel.

And referrals basically generates this outer viral loop.

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

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.

They love to tell you, It's about 10 percent, proudly.

We will take it to the potential 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.

If we now do the math, we can now see it cost me 100 to acquire one paying customer.

But because I had to cut lawns all summer for all of our neighbors and get paid to do that,

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

Can you expand your product line?

And one of the things we need to understand is what's the archetype or the persona of our customers that we're actually wanting to get and so one of the things that's kind of hard for startups is to realize that getting customers isn't some abstract idea you really need to understand who your customers are and this is not just thinking about selling to consumers.

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.

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

We have recently accepted a client who is VampireAmerican.

I want to know what the driver is.