And so much like thinking through pain, you'll start with a set of hypothesis, but the only way to understand this is outside the building in front of lots of customers.

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.

Remember we talked earlier about pains and gains for this customer segment.

By now, you're intimately familiar with the business model canvass.

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

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

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 unless you're in an existing market and you happen to know which features the customers have told you are more important.

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

Who do you do that for?

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

He's not the client.

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.

To guide how you form hypothesis during product development, and to help define the minimum viable product.

Here's your client list.

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

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

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

For example, in SAS software, some investors think that number should be 3 gt 1.

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

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

Instead of pricing based on cost,

Many companies have huge databases of customer information.

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.

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.

Notice by the way, while they were working on value proposition, they also had some hypothesis about the customer segments.

Well, remember this was to acquire a customer.

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

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,

Because no one, and that was a constant problem...

It's a big idea.

Apple is one of the few, truly cares.

That's your job as the facilitator and coach.

We've got customers.

Defense department's largest contractor.

And so, think about it and make a list of what each gain your products and services create according to its relevance to the customer.

I understand, Mitch. Gabriel's one of your top clients. You can't lose him.

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

We will take it to the potential customers.