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

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.

You cater an event where the cost to you was 200

I have no idea where my husband is.

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?

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

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

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

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

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

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

Many companies have huge databases of customer information.

But Mr. Wallace, I'll need at least a week in Cleveland to visit all my accounts.

Instead of pricing based on cost,

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.

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.

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,

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.

JU That's a good question, and we ask ourselves that every day.

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.

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, 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.

And number 4. Access to 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.

Apple is one of the few, truly cares.

The customer development process is actually a 4 step process.

So one of the interesting equations for every startup is that

That was the customer acquisition cost, CAC, here.

Let me write that in green.

Cold calls are the primary function of the telemarketing department.

This is the total numbers of cupcakes all of the factories in the market can produce.

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

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.

Supplies cannot keep up with the demand.

Next, they got out of the building again.

Here's your client list.

I want them to either pay for the product or sign up for something and become a user.

This last step is growing customers for the web mobile channels.

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.

Let's go to month two

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