1. Business Model Canvas Customer Relationships

2. Pop Quiz #1: What are the 3 stages of Customer Relationships?
Get, Keep, Grow

3. Pop Quiz #1: What are the 3 stages of Customer Relationships?
Get, Keep, Grow

4. Pop Quiz #2: What are the 4 Steps to Getting Customers?

5. Pop Quiz #2: What are the 4 Steps to Getting Customers?

6. Customer Archetypes Drive Get/Keep/Grow
What’s their role?
How this person is evaluated / promoted / compensated?
Who are they?
Buyer’s name
Position / title / age / sex
How do they buy?
Discretionary budget (name of budget and amount)
What matters to them?
What motivates them?
Who influences them?
What do they read/who do they listen to?
Archetype relates back to CS lecture
Lab Manager: Brian

7. Pop Quiz #3: What are the 2 Types of Demand Creation?
Get, Keep, Grow

8. Pop Quiz #3: What are the 2 Types of Demand Creation?
Get, Keep, Grow

9. Customer Relationships Physical Products – Get Customers
CAC =
Customer Acquisition Cost
© 2012 Steve Blank

10. Sales Complexity and the relationship with Customer Acquisition Cost
Freemium
No Touch Self-Service
Light Touch Inside Sales
High Touch Inside Sales
Field Sales
Field Sales with SE’s
Rough Estimates of Cost of Customer Acquisition (CAC)
$0- $10
$50 – $200
$1,000 - $2,000
$3,000 - $8,000
$25,000 – $75,000
$75,000 – $200,000
Source: David Skok Matrix Partners

11. Customer Relationships Physical Products – Keep Customers
Attrition/Churn
© 2012 Steve Blank

12. Customer Relationships Physical Products – Get/Keep/Grow
LTV = Customer Lifetime Value
© 2012 Steve Blank

13. What Investors Are Looking for?
A well balanced business model
Monetization (LTV)
CAC < LTV
Cost to Acquire a Customer (CAC)
Source: David Skok Matrix Partners

14. Monetization (LifeTime Value LTV) Cost to Acquire a Customer (CAC)
The Balancing Act
Viral effects
Inbound Marketing
Free or Freemium
Open Source
Free Trials
Touchless conversion
Inside Sales
Channels
Strategic partnerships
Monetization (LifeTime Value LTV)
Cost to Acquire a Customer (CAC)
Scalable Pricing
Cross Sell/Upsell
Product line expansion
Lead Gen for 3rd parties
Source: David Skok Matrix Partners

15. Customer Relationships Web/Mobile Products Get/Keep/Grow
The customer relationship is different for Web / Mobile Applications
© 2012 Steve Blank

16. Q&A: Customer Relationships
If you get the value prop wrong you will get stuck at interest step.