Today's companies are outdoing themselves in analyzing data about their customers, segmenting markets and building buyer persona profiles. However, despite access to huge sets of information, many products and innovations fail. Why? Because companies focus on correlations rather than on actual customer needs. This is where Jobs to Be Done (JTBD). - an approach that allows companies to better understand why consumers choose specific products and how they can improve their offerings to actually meet customer expectations.
In this article, we'll look at what Jobs to Be Done is, how to put it into practice, and the benefits it brings to companies that have implemented the approach. We will also use the key findings from the article "Know Your Customers' Jobs to Be Done". by Clayton Christensen and his team
JTBD is a methodology for understanding why customers "hire" a product or service to perform a specific task. Customers don't buy products for the features themselves - they buy them to achieve a specific advancement in a given situation.
An example would be a person buying a milkshake. A traditional segmentation analysis might say that it is purchased by men aged 30-40 who travel for work. However, from a JTBD perspective, the key question is: What job does this cocktail do for the consumer? It turns out that many customers bought it to make a boring commute more enjoyable because it was easy to consume in the car and lasted a long time.
JTBD is based on the following assumptions:
Companies often rely on analysis of demographic and psychographic data, assuming that this will be enough for successful sales. However, as Christensen notes, such analysis leads to false correlations. A good example is his own case - he is 64 years old, tall and drives a Honda, but none of these characteristics influence his decision to buy the New York Times. It's not his age or his car that causes him to choose a particular newspaper, but a specific task he wants to accomplish - such as finding something to read on the go.
JTBD allows companies to focus on real needs and causes, not just statistical correlations.
Implementing JTBD requires a change of perspective in customer analysis. Instead of asking: "Who are our customers?", it is better to ask: "What kind of work are they trying to do?". There are several ways to identify a JTBD:
Important: customer interviews can sometimes be misleading. It is important not only to ask the right questions, but also to objectively observe customers' behavior beyond just asking them about their motives.
Airbnb would not have succeeded if it had simply copied the hotel model. Instead, the company focused on the question: "What kind of work are people trying to do when they travel?". It turned out that many customers wanted not only accommodation, but also an authentic local experience and contact with locals. This approach has allowed the company to stay ahead of the competition.
Southern New Hampshire University (SNHU) has changed its strategy, understanding that adult students have different "jobs" to do than traditional students. Among other things, it introduced instant interviews with counselors and simplified enrollment procedures, so the university saw an increase in enrollment and higher student retention.
The example of the milkshakes shows how JTBD helps understand the real needs of customers. It wasn't a matter of taste or calories, but that the shake was perfect for consumption on the way to work, without getting dirty and ensuring satiety.
A real estate development company in Detroit discovered that a key factor keeping potential buyers from buying was... what to do with an old dining table. When they realized that the "job" was to "move a lifetime," they introduced moving services, two years of storage and a sorting room where new owners could make decisions about what to throw away. In 2007, with industry sales down 49%, the developers increased business by 25%.
To apply the JTBD approach effectively, it is useful to understand its key principles:
These principles, described in Harvard Business Review, show how a deep understanding of JTBD can fundamentally change a company's approach to innovation.
Jobs to Be Done is an approach that can dramatically increase the effectiveness of innovation and improve the accuracy of business decisions. Instead of creating products based on assumptions and demographic segmentation, JTBD focuses on what really drives customers' buying decisions. Companies that successfully implement JTBD can better understand their customers, deliver real value to them and build sustainable competitive advantages.
Does your company know what kind of work your customers are trying to do? If not - it's time to start asking the right questions!
Do you need support in the strategic development of your business? Get back to us, together we will find the right solutions!
The article is based on the text by Clayton M. Christensen, Taddy Hall, Karen Dillon and David S. Duncan, "Know Your Customers' 'Jobs to Be Done,'" published in the Harvard Business Review (September 2016) and other foreign sources on the JTBD methodology.
