Why Product-Centered Companies are Doomed to Fail.

Why Product-Centered Companies are Doomed to Fail.

March 6, 2023

In today's business landscape, companies are constantly competing to create and sell products that will appeal to customers. However, this product-centric approach is quickly becoming outdated. As products become commoditized and consumers become more sophisticated, it's no longer enough to focus on what a product does.

Instead, companies need to focus on what a product helps customers achieve.

That's where the Jobs-to-be-Done (JTBD) theory comes in.

What is the Jobs-to-be-Done Theory?

The JTBD theory is a framework for understanding why customers buy products. According to this theory, customers don't buy products or services; they "hire" them to get a job done.

A job is a task, problem, or need that a customer is trying to fulfill or solve.

Customers have many jobs to be done in their lives, ranging from the mundane (e.g., clean the house) to the profound (e.g., find purpose in life).

How does the Jobs-to-be-Done Theory work?

To apply the JTBD theory, companies need to understand the jobs that their customers are trying to get done.

This involves breaking down a job into its functional, emotional, and social dimensions.

Once a company has a clear understanding of the job, it can design products that help customers accomplish that job more effectively.

Why is the Jobs-to-be-Done Theory important?

The JTBD theory is important because it offers a new perspective on why customers buy products.

By focusing on the job, rather than the product, companies can gain a deeper understanding of their customers' needs and desires.

Examples of companies that use the Jobs-to-be-Done Theory

Here are some examples of companies that have successfully applied the JTBD theory:

  • Tesla: Tesla's Model S isn't just a car; it's a product that helps customers accomplish the job of transportation. Tesla's focus on this job has led to innovative features like electric charging and self-driving capabilities.
  • Canva: Canva is a graphic design platform that understands that its customers are trying to get the job of creating professional-looking designs done. Canva's features are designed to make the job of creating designs easier and more accessible to its customers.
  • Airbnb: Airbnb is in the business of providing accommodations for travelers, but the market it operates in is defined by the job of finding a place to stay while traveling. By understanding the job its customers are trying to get done, Airbnb is able to identify competitors, like hotels and other vacation rental services.
  • Slack: Slack's job is to make team communication more efficient, which has both functional and emotional dimensions. Customers hire Slack to get the job done of staying in touch with their team, but they also hire Slack to feel more connected and productive at work.
  • LinkedIn: LinkedIn's job is to help professionals network and find job opportunities. By segmenting its market based on job function and industry, LinkedIn is able to offer tailored services and job postings to different customer segments.

The Jobs-to-be-Done theory offers a great approach to product development and marketing.

By focusing on the job, rather than the product, companies can gain a deeper understanding of their customers' needs and desires.

This, in turn, can help companies create products that better fulfill those needs and desires.

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