# TAI First Customer Program - Pilot Documentation
## The Complete Playbook for Customer #1

**Version:** 1.0.0
**Date:** January 25, 2026
**Status:** Ready for Execution
**Audience:** Executive Team, Sales, Customer Success, Finance

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## What Is This?

This is the **complete playbook for acquiring, implementing, and proving value with TAI's first customer**. It's not a discount program—it's a **partnership to validate a new market category** and generate proof points for Series A.

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## The Three Documents

### 1. FIRST_CUSTOMER_PROGRAM.md
**11-Part Strategic Framework** (12,000 words)

Covers everything from customer selection to Series A narrative building:

- **Part 1:** Customer Selection — Who is Customer #1? (Specific profile, red flags, targeting)
- **Part 2:** Value Hypothesis — What value will we measure? (Specific metrics, formulas)
- **Part 3:** Baseline Measurement — How do we prove measurement is fair? (Joint audit, sign-off)
- **Part 4:** POC Duration — Why 90 days? (Cost/benefit analysis by duration)
- **Part 5:** Success Criteria — What does success look like to them & us?
- **Part 6:** Discount Strategy — 50-60% Year 1, standard pricing Year 2+
- **Part 7:** Logistics — Implementation timeline, support structure, training
- **Part 8:** Testimonials & Marketing — Case study rights, permissions, competitive sensitivity
- **Part 9:** Case Study — What we'll document and publish
- **Part 10:** Expansion — Year 2+ upsell opportunities, referral program
- **Part 11:** Failure Scenarios — Red flags, contingency plans

**Use This For:**
- Identifying the right customer profile
- Understanding the business model (this is not a discount deal)
- Overservicing justification to the team
- Contingency planning (what if it fails?)

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### 2. PILOT_AGREEMENT_TEMPLATE.md
**Master Service Agreement + Statement of Work** (8,000 words)

Legal/commercial framework with placeholders for customization:

**MSA Sections:**
- Parties & Term (36-month commitment, renewal options)
- Services Overview (what TAI delivers, SLA, professional services)
- Fees & Payment (Year 1: $45K, Year 2+: $120K+)
- Performance Metrics & Success Criteria (3 primary, 3 secondary)
- Customer Obligations (data access, meeting attendance)
- IP & Data Ownership (customer owns data, TAI retains platform IP)
- Case Study & Marketing Rights (tiered testimonial permissions)
- Support & SLAs (white-glove Year 1, standard Year 2+)
- Warranties & Liability Caps
- Termination & Renewal Rules

**SOW Section:**
- Implementation timeline (12 weeks, phase-by-phase)
- Scope of work (what's included, what's out of scope)
- Success metrics from MSA section
- Acceptance criteria & sign-off points
- Renewal decision process

**Use This For:**
- Actual contract negotiation with Customer #1
- Legal/finance review before execution
- Board approval of terms
- Customizing for different customer profiles

**Customization Checklist:**
- [ ] Replace [placeholders] with actual company info
- [ ] Adjust pricing based on customer profile
- [ ] Modify success metrics based on their baseline
- [ ] Legal review (state-specific terms)
- [ ] Finance/exec sign-off on discount terms

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### 3. SUCCESS_METRICS.md
**Measurement Framework & Dashboard Specification** (10,000 words)

How we measure success, track progress, and prove value:

**Primary Success Metrics (Must Have All 3):**
1. **Inventory Accuracy** → 96%+ (from ~91% baseline)
2. **Overstock Markdown Reduction** → 35% discount depth (from 45%)
3. **Stockout Prevention** → 1-2% rate (from 4%)
   - Value: $1.1M+ total annual impact

**Secondary Success Metrics (Need 2 of 3):**
4. **Operational Efficiency** → 8-12 hours/week freed (from 15-20)
5. **Forecast Accuracy** → 85%+ (from 72%)
6. **Working Capital Freed** → $210K+ (10% inventory reduction)

**Measurement Framework:**
- Who measures what (TAI vs. Customer vs. Independent auditor)
- Weekly dashboard (live, automated)
- Weekly sync reports (Friday updates)
- Monthly business reviews (1-hour executive syncs)
- Final measurement report (90-day case study-ready document)

**Renewal Decision Logic:**
- SUCCESS: 3/3 primary + 2/3 secondary → Automatic Year 2 renewal
- CONDITIONAL: 3/3 primary + 1/3 secondary → Year 2 at standard pricing
- EXTENDED: 2/3 primary + 1/3 secondary → 60-day extension + additional TAI investment
- NON-RENEWAL: <2/3 primary → Graceful exit or pivot to lower pricing

**Use This For:**
- Setting up weekly/monthly reporting cadence
- Building customer dashboard
- Defining what "success" means operationally
- Preparing case study evidence
- Investor due diligence (metrics are credible, verifiable)

---

## How to Use These Documents

### Timeline

**Week -2: Pre-Deal (Before Customer Engagement)**
- [ ] Read: FIRST_CUSTOMER_PROGRAM.md (Parts 1-6)
- [ ] Task: Identify 5 target companies matching profile
- [ ] Task: Board approval of pilot strategy & discount terms

**Week 0: Deal Closure**
- [ ] Read: PILOT_AGREEMENT_TEMPLATE.md (customize placeholders)
- [ ] Task: Legal review & exec sign-off on contract
- [ ] Task: Customer signs MSA + SOW

**Week 1-3: Setup & Baseline**
- [ ] Read: SUCCESS_METRICS.md (baseline measurement section)
- [ ] Task: Execute baseline audit with customer
- [ ] Task: Get customer sign-off on baseline metrics

**Week 4-9: Execution & Tracking**
- [ ] Read: SUCCESS_METRICS.md (dashboard section)
- [ ] Task: Weekly metrics reporting (every Friday)
- [ ] Task: Monthly MBR (first Friday of each month)
- [ ] Task: Daily standups during launch phase

**Week 10-12: Measurement & Expansion**
- [ ] Read: FIRST_CUSTOMER_PROGRAM.md (Parts 9-10)
- [ ] Task: Final measurement & success declaration
- [ ] Task: Draft case study
- [ ] Task: Plan Year 2 expansion

**Month 4+: Case Study & Sales Asset**
- [ ] Read: FIRST_CUSTOMER_PROGRAM.md (Part 9)
- [ ] Task: Publish case study (external + internal)
- [ ] Task: Use in Series A pitch
- [ ] Task: Leverage for Customers #2-3 sales

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## Key Numbers (At a Glance)

**Financial Model:**

| Item | Amount | Notes |
|------|--------|-------|
| **Year 1 Investment** | $45K | Pilot discount (50-60% off standard rate) |
| **Professional Services Cost** | $50-100K | Overservicing (overload contingency) |
| **Total Year 1 Cost to TAI** | $95-145K | Sunk cost for proof of concept |
| **Year 2 Contract Value** | $120K+ | Standard pricing, customer locked in |
| **Year 3 Contract Value** | $150K+ | 25% escalation |
| **3-Year Revenue** | $315K+ | Total customer LTV (baseline) |
| **Customer Value Created (Year 1)** | $1.1M+ | Margin recovery + operational savings |
| **ROI for Customer** | 24x+ | $1.1M value for $45K paid |
| **Series A Valuation Lift** | $5-10M+ | From "proof of concept" → "validated model" |

**Team Investment:**

| Role | Weeks 1-3 | Weeks 4-6 | Weeks 7-12 | Total |
|------|----------|----------|----------|-------|
| **Customer Success Manager** | 50% | 100% | 50% | 0.75 FTE |
| **Integration Engineer** | 100% | 50% | 0% | 0.5 FTE |
| **Data Scientist** | 0% | 50% | 25% | 0.25 FTE |
| **Account Executive (Oversight)** | 25% | 25% | 25% | 0.25 FTE |

**Timeline: 12 Weeks (3 Months) + 30 Days Measurement**

---

## The Case Study Promise

If Customer #1 succeeds, we get:

- **1 Published Case Study** (2,500 words, third-party publishable)
- **3-5 Quotes** (CEO, CFO, Ops Lead testimonials)
- **Real Metrics** (backed by 12 weeks of data + audits)
- **Competitive Advantage** (first customer in market with this category)
- **Sales Asset** (use to land Customers #2-3 at higher prices)
- **Investor Narrative** (Series A funding with proof, not promises)

**Published Channels:**
- TAI website (Featured Customer page)
- Blog (long-form case study)
- Sales deck (investor pitch)
- PR/media (TechCrunch, VentureBeat pitch)
- LinkedIn (influencer shares)
- Referral marketing (Customer #1 introduces #2-3)

---

## Success Probabilities

Based on customer profile fit:

| Scenario | Probability | Outcome |
|----------|-------------|---------|
| **All metrics achieved (3/3 + 2/3)** | 60% | Automatic renewal, immediate case study, Series A asset |
| **Metrics mostly achieved (3/3 + 1/3)** | 20% | Conditional renewal, case study delayed 60 days, still valuable |
| **Mixed results (2/3 + 1/3)** | 12% | Extended pilot, additional TAI investment, learning only |
| **Poor results (<2/3)** | 8% | Non-renewal, graceful exit, informs future targeting |

**Multiplier Effect (Why It Matters):**

```
If Customer #1 succeeds:
- Enables Customers #2-3 at full price ($150K each)
- Plus referral revenue from C#1 introductions
- Plus Series A valuation boost ($5-10M based on "validated model")

Net Value of Customer #1 "Success":
- Direct revenue: $315K (3-year LTV)
- Indirect revenue: $500K+ (from #2-3 referrals)
- Valuation multiple: $5-10M (Series A lift)
- Total multiplier: 15-20x the $45K pilot investment

This is why we overinvest in Customer #1.
```

---

## Contingency Runbook

**If metrics lag by Week 6:**
- Read: FIRST_CUSTOMER_PROGRAM.md (Part 11 - Failure Scenarios)
- Action: Root cause analysis + 60-day extension proposal

**If customer wants to terminate early:**
- Read: PILOT_AGREEMENT_TEMPLATE.md (Section 11 - Termination)
- Action: Negotiate continuation at break-even + case study rights

**If results are poor at Week 12:**
- Read: SUCCESS_METRICS.md (Part 6 - Quality Assurance)
- Action: Diagnose failure + pivot to lower pricing or graceful exit

---

## Checklists

### Pre-Customer-Signature Checklist

- [ ] Board has approved pilot program & discount strategy
- [ ] VP Sales has identified 5 target companies
- [ ] Legal has reviewed PILOT_AGREEMENT_TEMPLATE.md
- [ ] Finance has approved the $95-145K cost overrun
- [ ] Executive team has agreed on success criteria
- [ ] Customer Success team has been briefed on 12-week sprint
- [ ] Slack channel created for daily standups
- [ ] Dashboard infrastructure is ready (or will be ready Week 1)

### Week 1-3 Baseline Checklist

- [ ] Baseline measurement audit scheduled
- [ ] Customer has provided read-only API access
- [ ] 90-day historical data extracted
- [ ] Baseline metrics calculated & documented
- [ ] Customer CFO has reviewed baseline assumptions
- [ ] Both parties have signed baseline agreement
- [ ] Go-live readiness confirmed by customer ops team

### Week 4-9 Execution Checklist

- [ ] Daily standups scheduled (customer + TAI ops lead)
- [ ] Weekly metrics report sent Friday COB
- [ ] First MBR completed with leadership
- [ ] Dashboard showing live metrics
- [ ] Customer implementing TAI recommendations
- [ ] No critical blockers/integration issues

### Week 10-12 Closure Checklist

- [ ] Final measurement data extracted
- [ ] Customer has validated final metrics
- [ ] Both parties have signed success/non-success acknowledgment
- [ ] Case study draft completed
- [ ] Customer has approved case study (no surprises)
- [ ] Renewal decision documented (Year 2 commitment or exit)
- [ ] Testimonial/quote permissions secured

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## Distribution & Approval Gates

**Document Review Sequence:**

1. **Exec Review** (CEO, CFO, VP Sales, VP Product)
   - Read all three documents
   - Approve customer profile + terms
   - Sign off on $95-145K overservicing cost

2. **Legal Review** (In-house counsel or external)
   - Review PILOT_AGREEMENT_TEMPLATE.md
   - Suggest state-specific modifications
   - Ensure IP/liability terms are favorable

3. **Board Awareness** (If required by governance)
   - Explain pilot strategy (not a discount, it's an investment)
   - Show Series A multiplier effect
   - Get approval to proceed

4. **Customer Signature**
   - Sales rep conducts final deal review
   - Customer signs PILOT_AGREEMENT_TEMPLATE.md
   - Deposit collected ($45K or full annual prepayment)

5. **Implementation Kickoff**
   - Customer Success Manager reviews all docs
   - Team syncs on expectations
   - Week 1 schedule confirmed

---

## Long-Term Use

These documents become **evergreen assets**:

**For Future Customers:**
- Use FIRST_CUSTOMER_PROGRAM.md as template for Customers #2-5
- Use SUCCESS_METRICS.md as standard measurement framework
- Use PILOT_AGREEMENT_TEMPLATE.md as basis for MSA/SOW

**For Investors:**
- Use success metrics in Series A pitch
- Show real customer data (case study proof)
- Demonstrate unit economics validation

**For Product Team:**
- Use customer feedback to inform roadmap
- Use metrics to validate feature impact
- Use baseline → final measurement to quantify improvements

**For Marketing/PR:**
- Use published case study for media outreach
- Use metrics for competitive positioning
- Use testimonials in sales materials

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## Questions? Next Steps?

**To Get Started:**

1. **Read FIRST_CUSTOMER_PROGRAM.md** (understand the strategy)
2. **Review PILOT_AGREEMENT_TEMPLATE.md** (share with legal)
3. **Review SUCCESS_METRICS.md** (understand measurement approach)
4. **Executive Sync** (approve customer profile + terms + budget)
5. **Sales Outreach** (identify 5 companies, schedule discovery calls)
6. **Deal Closure** (negotiate, sign contract, collect deposit)
7. **Week 1 Kickoff** (baseline measurement begins)

**Success Timeline:**
- Deal closure: Week 0
- Baseline measurement: Weeks 1-3
- Execution & tracking: Weeks 4-9
- Final measurement: Weeks 10-12
- Case study publication: Week 13+
- Series A narrative: Month 4+

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**This is the most important document in TAI's history.**

Customer #1 is not a sale. Customer #1 is a **proof point that validates the entire business model**.

Success here unlocks everything: Series A conversations, enterprise sales playbook, product-market fit narrative, and a reference worth $5M+ in valuation.

Let's make this count.

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**Document Version:** 1.0.0
**Last Updated:** January 25, 2026
**Created For:** TAI Leadership Team
**Status:** Ready for Execution
