Understanding JTBD Theory: A New Approach to Meeting Customer Needs
Jobs-to-be-Done (JTBD) is a powerful framework that helps businesses understand and meet their customers' needs. It goes beyond simple market research to improve products and services, launch new ones, and refine go-to-market strategies.
What is Jobs-to-be-Done (JTBD)?
JTBD is all about understanding why people use products or services. It focuses on the job customers want to get done to make progress in their lives. This could be anything from getting to work on time to impressing clients or managing family activities.
Developed by Theodore Levitt and popularized by Harvard Business School's Clayton Christensen, JTBD emphasizes understanding the emotional and functional aspects of why customers choose certain products or services.
Why Use Jobs-to-be-Done?
Traditional marketing often relies on demographics and customer attributes. However, this approach can miss the deeper reasons behind customer behavior. JTBD focuses on understanding these needs and motivations, which can lead to more innovative and effective product development and marketing strategies.
Using JTBD helps businesses:
Identify customer needs
Discover unmet needs in different segments
Share insights across the organization
Develop products with higher success rates
Create effective go-to-market strategies
Innovate business models
Example: The Job of Milkshakes
One classic example is how McDonald's improved its milkshake sales by seven fold. Despite extensive customer data and feedback, they struggled to boost sales. Christensen's team discovered that customers often bought milkshakes for their long morning commutes, needing something that would keep them full and be easy to consume while driving. Understanding this "job" helped McDonald's tailor their milkshakes to better meet these needs, boosting both sales and customer satisfaction.
Applying Jobs-to-be-Done
To apply JTBD, start by thinking about your customers' jobs to be done. Discuss and refine these ideas with your team. To deepen your understanding, you can:
Interview customers to learn about their goals
Explore alternatives to your product
Conduct surveys to understand customer behavior
Use JTBD frameworks for more detailed analysis
By focusing on the jobs your customers need to get done, you can create products and services that truly resonate with them and drive your business forward.
Conclusion
Jobs-to-be-Done offers a fresh perspective on understanding customer needs, leading to more effective and innovative products and services. By focusing on the real jobs customers want to accomplish, businesses can better meet these needs and achieve greater success.
Further Reading
Here are a few curated links for further reading if you’re interested:
