Jobs to be done theory

The "Jobs to Be Done" (JTBD) theory is a powerful framework for understanding customer needs and driving innovation. While it may seem simple, applying it effectively requires a deep understanding of how customers interact with products and services. This article explores the JTBD theory with real-life examples to demonstrate its impact.

What Is the Jobs to Be Done Theory?

The JTBD theory, introduced by Harvard Business School Professor Clayton Christensen, is based on the idea that customers "hire" products or services to accomplish specific "jobs" in their lives. By focusing on the underlying needs and motivations of customers, rather than the products themselves, businesses can better design solutions that meet those needs, increasing the chances of success.

Many of you may remember the famous statement of Ted Levitt:

For example, consider the story of how Intuit transformed its product, QuickBooks. In the early 2000s, Intuit noticed that small business owners were struggling with accounting software that was too complex. Through customer observation and interviews, they discovered that these business owners were not just looking for accounting software—they were hiring a tool to help them manage their business finances without needing an accounting background. Intuit redesigned QuickBooks to be more user-friendly, focusing on the job of simplifying financial management for non-accountants. This shift in focus led to QuickBooks becoming the dominant accounting software for small businesses.

BOSCH applied JTBD to successfully launch its circular saw in the U.S. market. By analyzing customer jobs, they were able to identify key features that resonated with users, enabling them to stand out in a saturated market and achieve significant sales growth

Snickers redefined its competitive landscape by recognizing that its true competition was not just other candy bars but anything that could satisfy hunger. Their marketing strategy emphasizes this job, helping them position their product more effectively in the market

Key Principles of Jobs to be Done Theory

• Customers "hire" products or services to get specific "jobs" done in their lives, whether functional, emotional or social
• Understanding the "job" a customer is trying to accomplish is more important than demographics or product features
• People have multiple "jobs" that can change over time as circumstances evolve
• Successful innovations solve a customer's "job" better than existing solutions
• To get hired, a new product must cause the customer to "fire" their current solution or behavior

By identifying these “jobs” that customers are willing to pay for, businesses can concentrate their efforts on creating products that fulfill those jobs better than alternatives.

Understanding Customer Jobs

Each job typically has both functional and emotional dimensions:

• Functional Aspects: These involve practical benefits that users seek from a product. For example, when considering a work laptop, a user might say: "When I work remotely, I need a laptop with long battery life so I can be productive anywhere."
• Emotional Aspects: Customers often make decisions based on feelings rather than just rational criteria. Continuing with the laptop example, one might also desire a sleek design: "When I work remotely, I want a stylish laptop that looks good in public."

These emotional aspects can further be broken down into:

• Personal Dimension: Emotional benefits experienced individually (e.g., wanting a powerful laptop for gaming).
• Social Dimension: Emotional benefits tied to societal perceptions (e.g., choosing a MacBook for its status symbol).

Crafting a Job Statement

To effectively articulate a job using the JTBD framework, consider the following template:

"When [context], I want to [job] because I am [motivation], so I can [outcome]."

This structure helps clarify the user's context and motivations. For instance: "When I'm working from home, I want to use a noise-canceling app because I feel self-conscious about background noise during calls, so I can appear more professional."

Here are two examples of using this method to craft:

Here's an example of crafting a job statement using the "Jobs to be Done" (JTBD) framework:

Example 1:

A busy professional looking for healthy meal options.

• When: I’m at work and have limited time for lunch.
• I want to: find a quick, healthy meal option.
• Because I am: trying to maintain a healthy diet and stay productive during the day.
• So I can: save time, eat healthily, and focus on my work without feeling sluggish.

This statement helps companies understand the specific context (work hours), the desired job (finding a meal quickly), the motivation (health and productivity), and the outcome (saving time, maintaining energy). From this, a business could develop a product or service, such as a meal delivery app offering nutritious, quick meals for busy professionals.

Example 2:

Context: When I’m commuting to work on a crowded train

Job: I want to listen to an informative podcast

Motivation: because I’m trying to stay updated on industry trends

Outcome: so I can improve my skills and stay competitive in my field.

This job statement highlights the user’s need to optimize their time during a specific activity (commuting) and the underlying motivation (staying informed), leading to a desired outcome (professional growth).

Here are a few tips for mastering this:

1. Observe Customers in Their Natural Environment

Understanding JTBD begins with observing customers in their real-world contexts. Observation allows you to uncover the functional, social, and emotional jobs that customers need to accomplish. A classic example is the development of the Swiffer by Procter & Gamble. P&G researchers observed how people cleaned their floors and found that many disliked the time-consuming and messy process of mopping. They discovered that customers were "hiring" their mops to achieve a clean floor with minimal effort. This insight led to the creation of the Swiffer, a cleaning tool that simplified the process by making it faster and easier. The Swiffer's success was rooted in its ability to fulfill the job of quick and easy cleaning, something traditional mops couldn’t do as effectively.

2. Prioritize the Job Over the Product

Once you’ve identified a job to be done, the next step is to focus on understanding the job itself rather than jumping straight to product development. This approach ensures that the solution you design is truly aligned with the customer’s needs.

For instance, when Airbnb was founded, the company focused on the job of providing travelers with affordable and unique accommodation experiences. Instead of just competing with hotels on price or amenities, Airbnb recognized that many travelers were looking for a more personal, home-like experience. By prioritizing this job, Airbnb created a platform that allowed people to rent out their homes, offering an experience that hotels couldn’t match. This focus on the job, rather than just creating another accommodation service, helped Airbnb revolutionize the travel industry.

3. Embrace JTBD as an Ongoing Process

Mastering the JTBD theory requires ongoing observation, reflection, and adaptation. It's a continuous process that helps companies stay in tune with evolving customer needs.

Consider the case of Netflix. In its early days, Netflix’s job was to provide convenient DVD rentals by mail, which was a major innovation compared to traditional video rental stores. However, as streaming technology improved and customer preferences shifted, Netflix recognized that the job customers wanted done had evolved—now they wanted instant access to a wide variety of content without leaving their homes. By understanding this shift, Netflix pivoted to become a streaming service, and today, it’s a global leader in digital entertainment. This ongoing application of the JTBD theory allowed Netflix to adapt and thrive in a rapidly changing market.

Ulwick's framework for strategy based on JTBD model

1. Dominant Strategy (Top-Right Quadrant)

This strategy targets all types of customers by offering a solution that gets the job done better than alternatives while charging less. Example: Zoom (Video Conferencing) — Zoom disrupted the video conferencing market by offering a more user-friendly interface with better connection quality at a lower cost than traditional corporate solutions like WebEx or GoToMeeting. It served both enterprises and individuals, excelling across customer segments with a superior, low-cost offering.

2. Differentiated Strategy (Top-Left Quadrant)

A differentiated strategy focuses on underserved customers by providing a solution that does the job significantly better but often charges more for these improvements. Example: Tesla (Electric Vehicles) — Tesla differentiated itself by offering electric vehicles (EVs) with exceptional performance, long-range, and cutting-edge technology like autopilot, targeted at high-end customers. Although Tesla vehicles cost more, they address the job of reducing environmental impact and improving driving experience much better than traditional gasoline-powered cars.

3. Disruptive Strategy (Bottom-Right Quadrant)

This strategy appeals to overserved customers (those who do not need all the features of premium solutions) and nonconsumers by offering a solution that gets the job done at a much lower cost, often doing the job "good enough." Example: Southwest Airlines — Southwest adopted a disruptive strategy by offering no-frills, low-cost flights, targeting customers who were overserved by traditional airlines with expensive features like business class or in-flight meals. By eliminating these extras, Southwest offered affordable travel options to price-sensitive customers.

4. Discrete Strategy (Bottom-Left Quadrant)

Explanation: In this case, the solution offers limited features, getting the job done worse while charging more. This is often a result of limited competition or constrained market dynamics. Example: Taxis (Before Ridesharing Apps) — Before ridesharing apps like Uber or Lyft, taxis operated under a discrete strategy in many areas. They were often more expensive than alternatives like buses or carpooling, with limited service (long wait times, poor accessibility), getting the job done worse at a higher price, but consumers had limited alternatives.

5. Sustaining Strategy (Center)

This strategy targets existing customers by maintaining or slightly improving the current offering. It neither gets the job done significantly better nor worse, and price changes are minimal. It's focused on keeping current customers satisfied. Example: Apple’s iPhone Updates — Each new iPhone generation typically offers incremental improvements in camera quality, battery life, and processing power. These updates sustain Apple's existing customer base, who are already loyal, rather than attempting to disrupt or revolutionize the market.

Each strategy aligns with how well a product or service gets the job done and its relative cost. The Dominant and Differentiated strategies excel by improving outcomes, while the Disruptive and Discrete strategies often rely on minimizing cost or competing with limited options. Understanding where a company fits in this framework can help refine its approach to meet customer needs effectively.

To Sum up:

• The Jobs to Be Done (JTBD) theory provides a powerful lens for understanding customer motivations and designing solutions that directly address their core needs.
• JTBD shifts the focus from traditional demographic-based marketing to understanding the underlying motivations and contexts in which customers seek solutions. This perspective enables companies to develop products that genuinely resonate with users.
• This approach emphasizes that customers don't just buy products; they "hire" them to achieve a desired outcome. By understanding the underlying jobs, companies can develop solutions that provide true value, whether by improving performance, reducing cost, or simplifying a process.
• As illustrated by various strategies (dominant, differentiated, disruptive, and discrete), a company's ability to align its offerings with these jobs can drive success in competitive markets.
• Ultimately, the JTBD framework encourages organizations to continuously seek better ways to serve their customers, unlocking new opportunities for growth and innovation.