"Jobs-To-Be-Done" (JTBD) explained for product managers

Never before have we collected more data about our customers and known more about them than we do today. Nevertheless, new products and innovations still fail just as often as before. So what are the sticking points?

Jobs-to-be-done (JTBD ) provides answers to this. With this method, you focus on identifyingthe essential tasks or customer needs that drive customers to use a product or service. You learn to understand the specific jobs that your customers want to do and offer solutions that best meet these jobs. Let's take a closer look at the concept!

What is the aim of Jobs-to-be-done?

As mentioned at the beginning, new products and innovations often fail despite the fact that we know more and more about our customers. So is the whole data collection craze pointless? No! The fundamental problem is that most customer data generated by companies is structured in such a way that it only shows correlations:

• The readers of a stock market newspaper are predominantly male.
• Buyers of new cars are on average X years old.
• Customers who have logged in X times have a Y probability of canceling (churn).
• According to analyses, the market has developed in such and such a way in the past. Accordingly, we can assume that SMEs will want XY in the coming years.
• On average, visitors to a coffee shop order 1.5 hot drinks.

While we find it exciting and interesting to discover patterns in the data, this does not necessarily mean that one thing has actually caused another. It is widely known that correlation does not equal causation.

Nevertheless, we have become accustomed to making decisions based on correlations. The abundance of information and data leads us to believe that we know our customers through and through. However, this is a misconception. Rather, this data provides more information about correlations. However, it does not provide us with the causal relationship - the reason - for purchasing decisions.

One example:

I'm Thomas, 41 years old and male. I help companies to develop new products and I travel all over Germany for work. I have a Spotify, Netflix and Amazon Prime subscription. I also use Apple products and live in Munich, a big city with an above-average income.

These are many characteristics that the Bose company can find out about my purchase decision and me. However, none of these characteristics persuaded me to buy noise-canceling headphones from the brand.

No, I was simply annoyed by the train conductor. On the train journey from Munich to Essen, he shouted in my ear 10 times about where we were arriving or departing and that the coffee machine in the on-board bistro was still not working. This is the causal relationship that prompted me to make the purchase - and it is not apparent from the structured data.

The causal reason for the purchase describes very precisely what task a person actually wanted to do in their life. We refer to this as job-to-be-done - literally translated: task to be completed.

If you know your customers' causal reasons for buying, you hold the key to innovation in your hand. The jobs-to-be-done method helps you to understand these reasons and focus on the customer jobs.

The basics of the jobs-to-be-done method

At the heart of Jobs-to-be-done is a simple question:

Why do customers buy your product and what task do they want to fulfill with your service, your product?

This is exactly where the name "jobs-to-be-done" comes into play. In a sense, there is a job description for a task to be completed and we look at which applicants - aka products - can complete this task. The applicant - the product - that best fits the job description is awarded the contract.

The application of the jobs-to-be-done method is not limited to improving existing products, but also serves as a basis for product development by understanding customer needs and offering innovative solutions.

Clayton Christensen, one of the pioneers of the framework, coined the following phrase to describe this analogy:

"Customers don't buy products. They hire products to complete a task.

When you buy a product, you are essentially "hiring" it to help you complete a task. If it does the job well, you're inclined to buy the product again the next time you're faced with the same task. And if it does a poor job, you "fire" it and look for an alternative.

What are jobs in the sense of jobs-to-be-done?

We all have many tasks to deal with in our lives. Some are small, like passing the time on the subway, others are big, like making provisions for old age. Some pop up unpredictably, for example when you have to find a job after being made redundant. Others come up regularly, for example when you're looking for a healthy lunch. We call all these tasks jobs that take into account the functional as well as the emotional and social needs of our customers.

What types of "jobs" are there?

In addition to the division into large and small, spontaneous or everyday tasks, the jobs-to-be-done method emphasizes the following three aspects that are fulfilled by jobs:

• Functional jobs-to-be-done

Functional jobs refer to the practical tasks or problems that customers want to solve with a product or service. These are the basic functional requirements that the product should fulfill in order to meet customer needs.

• Emotional jobs-to-be-done

Emotional jobs relate to the feelings that customers associate with the product or service. It is about how the product can increase the customer's emotional satisfaction, pleasure or joy. Emotional jobs satisfy the need for joy, pride, security or other emotional aspects.

• Social jobs-to-be-done

Social jobs refer to how the product or service helps customers fulfill certain social needs. These can be things like recognition, belonging, status or sharing experiences with others. Social jobs aim to help customers gain social standing or social interactions.

From a jobs-to-be-done perspective, it is important that you understand both the functional and the emotional and social jobs in order to get a comprehensive picture of customer expectations and needs. Typically, you can discover the functional jobs comparatively easily. They form the basis for the most favorable, purely functional solution.

In most cases, however, customers are willing to pay more if their social or emotional jobs are also served. Here are some examples of this:

• A doorbell is a purely functional product to notify you when someone is at the door. With an intercom system or even a camera, your emotional jobs of security and convenience are also served.
• Cafés with space to work or co-working spaces create a sense of belonging instead of social isolation for remote workers.
• Freelancer platforms with an escrow function not only arrange assignments, but also give both parties the certainty that the promised services will be delivered and paid for.
• A second or third car or the latest smartphone model, if your current one is still fully functional, are objectively not functionally necessary. These are prime examples of status symbols.
• Your product includes functions for social interaction. This is how you fulfill additional social jobs.

Jobs stay the same over time - products change

The interesting thing about jobs is that they don't change over time. But how we perform these tasks does! Applying the 'jobs-to-be-done' method is not only important for improving existing products, but also as a basis for product development. We have two illustrative examples of this.

The music industry

People's need to be entertained by music has remained relatively stable over the past decades - if not centuries. However, the products used to do this job have changed dramatically over the years: from chamber concerts and orchestral performances to record, cassette and CD players, MP3 players and on-demand streaming services.

Consistent jobs at Amazon

Amazon has made full use of the principle of stable jobs. At the beginning, Jeff Bezos asked himself what will still be valid in 10 years' time. According to his analysis, customers will still want the following things in the future:

• Favorable prices
• a large selection
• Fast delivery

The milkshake example for JTBD

In"Competing Against Luck: The Story of Innovation and Customer Choice", Harvard Business School professor Clayton Christensen presented the jobs-to-be-done theory. To be innovative, a company must know what customers want. The milkshake case study comes from Christensen's work as the most frequently used case study on JTBD and is summarized excellently in this short video:

https://youtu.be/sfGtw2C95Ms?si=rZX5zx-f-l8ZgdSv

The famous milkshake example is an illustrative application of the jobs-to-be-done theory. In this study, Christensen's team tried to help a fast food restaurant increase its sales of milkshakes by identifying the 'customer jobs' that customers were trying to fulfill. However, despite traditional market research and adjustments to the product, such as changes to taste, texture or size, sales did not increase significantly.

The team decided to look at the problem through the lens of the jobs-to-be-done theory. They determined when and why customers actually bought milkshakes. They discovered that many bought milkshakes early in the morning and that buyers were often alone. In interviews with them, the team found that customers had "hired" the milkshakes to do a specific "job": they wanted to fill the long, boring commute to work and satisfy their hunger until lunch. A milkshake was convenient, less messy than other foods and took longer to consume, providing some entertainment on the long car journey.

This realization led to new marketing and product improvements aimed at this specific job. Instead of making changes to the features of the milkshake itself, the fast food restaurant focused on optimizing the job for which the milkshake was hired: a convenient and filling breakfast for commuters.

The milkshake example clearly shows how the JTBD perspective can help companies gain a deeper understanding of their customers' needs and offer more effective solutions.

What is the main difference between jobs-to-be-done and other methods?

JTBD stands out from other methods primarily due to two aspects. Firstly, you are not just looking for correlations, but for the cause of purchasing decisions and customer needs. Secondly, you are looking at the situation, not specific personas. Let's take a closer look at these two things.

Difference 1: Cause vs. Correlation

The JTBD method places great emphasis on looking beyond correlative relationships and understanding causal relationships instead. Your goal is to understand the actual reason for the customer's behavior.

• Cause: A causal relationship exists when a certain factor directly and demonstrably influences the behavior or decisions of customers. It is about identifying the actual job or need that causes customers to use a particular product or service. If you understand the cause, you and your team can develop targeted solutions that meet customer needs and offer real added value.

• Correlation: A correlative relationship exists when two factors are related but do not necessarily have a direct cause-and-effect relationship. The danger here is that you only recognize superficial connections or patterns, but do not understand the actual reason for customer behaviour. A mere correlation can lead to false conclusions and cause your company to base its products or services on false assumptions.

Through targeted interviews, observations and analyses as part of JTBD, you will find out the actual causes of customer behavior and make well-founded decisions. As a result, you can offer products and services that really meet customer needs and are therefore successful in the long term.

Difference 2: Situation vs. persona

Instead of relying on personas, as is typical in market research, JTBD focuses on the respective situation in which customers have to complete a task.

• Personas: Personas are detailed profiles of imaginary customers based on market research data. In practice, characteristics such as age, gender, profession, interests and other demographic and psychographic factors usually predominate. Personas are intended to make it easier for developers and designers to empathize with their customers and create products that are tailored to their specific needs and wishes.

• Situation: However, the JTBD theory sees things differently. It argues that customers "hire" products and services in order to complete certain "jobs" or tasks. The characteristics of the customers themselves are less relevant. Rather, the specific circumstances, the situations they find themselves in and the jobs they are trying to do are more important. According to the JTBD framework, jobs define customer needs, not demographic characteristics or personality traits.

The milkshake example above reinforced this view: it was not so much who the customers were - defined by age, gender, occupation, etc. - but rather what job they wanted to do with the milkshake - a filling meal for the commute. Thus, according to JTBD theory, understanding the jobs customers want to do is a more effective way to design products and services that offer real value to customers.

However, this does not mean that personas are useless. They still help you gain a deeper understanding of your customers and build empathy for them. And the mostly demographic data can also be very useful in marketing.

How do you use the jobs-to-be-done method?

In addition to the basic theory, the jobs-to-be-done framework also provides you with a specific process for its implementation. With the following five steps, you focus on understanding the specific tasks that customers want to accomplish and how a product or service can best meet those needs.

The application of the jobs-to-be-done method is not limited to the improvement of existing products, but also serves as a basis for product development.

Step 1: Identify jobs

You start with direct observations, interviews or surveys to identify the specific jobs your clients want to do. Remember that a job in this context is a task or goal that the customer wants to achieve.

You can find instructions for job-to-be-done interviews in the linked article.

Step 2: Understand job requirements

Next, analyze the specific requirements or goals of each identified job. What actions need to be taken to successfully complete the job? What obstacles stand in the way of success? We like to use the Value Proposition Canvas for this.

Thomas explains what the Value Proposition Canvas is and how it works here!

Step 3: Segment by job

As we explained above, JTBD doesn't focus on personas and demographics. Instead, you segment customers based on the situation they are in and the jobs they want to do. Typically, we create a separate value proposition canvas for each segment. This keeps it clearer and allows us to focus on each segment individually.

Step 4: Develop solutions

Now you're ready to use the information you've gathered to develop ideas for products, services or features that are specifically designed to do the jobs more effectively or efficiently.

Step 5: Validate and iterate

You now test your solutions with real customers. In doing so, you collect feedback that you use to iteratively improve your solutions and adapt them more precisely to the customer's jobs. We call this step solution testing.

We have also looked at this topic in more detail. Read this article to find outwhat you should look out for and how you can achieve commitment .

The most important facts in brief

The JTBD method is a powerful tool for developing products and services that focus on customer needs. With it you can:

• focus on the actual needs of the customer,
• Create products and services that meet these needs
• and offer customers real added value.

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