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  • Writer's pictureTal Nagar

Your Secret Sauce To 100% Customer Retention: The Jobs-to-be-Done Part 1

Here's how harnessing the Jobs-to-be-Done theory boosts your revenue.


* This post is the first in a two-part series about the Jobs-to-be-Done theory - a game-changer for business growth.

 

With a 40-50% annual churn rate for SaaS companies (raaft.io), one thing is clear:


Businesses desperately need a solution.


But not just any solution. They need to use the Jobs-to-be-Done theory.


If you’ve read my previous posts, I'm sure you've come across this term, which has the power to:

  1. Skyrocket your business growth.

  2. Leave your competitors in the dust.

  3. Establish long-lasting customer relationships.


So, if you want to beat the statistics, this is not a blog post to miss.


Picture this


You got off work and decided to grab a drink with two friends.


Once in the bar, you’re met with a deafening silence. Everyone is glued to their phones, scrolling through Friends memes. No one is talking or drinking.


You look at your friends and without saying a word, leave the bar in hopes of finding a new place.


Sounds terrible, right?


But wait, what if the bar served your favorite drink at a great price? Would you still leave?


Probably, and here's why:


A bar isn’t just a place to grab a few drinks.


It’s an area with buzzing energy where you can socialize and have a night filled with laughter and joy.


This bar wasn't aligned with its Job-to-be-Done.


If you asked the bar owner, they would go on and on about their excellent drinks. But, they've obviously missed the real reason people go to bars.


How can you ensure that this never happens to you?


Easy. Apply the Jobs-to-be-Done theory across your company NOW.


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


It is a powerful perspective based on a simple, yet game-changing, assumption:

People buy products and services to get a job done.

Your customers “hired” your product for a specific job.


If your product made the job easier, they’d be sure to “hire” it again.


But, if it made their lives harder, they will “fire” you.


It all depends on your product’s contribution to getting their job done.


Can you define your customers’ Jobs?


Ulwixk and Christensen, the masterminds behind this theory, define a job as:


The underlying process a customer is trying to complete with the goal of changing themselves or their business.


Along with internal motivation, each job includes:

  1. Has powerful social and emotional dimensions.

  2. Is stable over time.

While identifying a job is important, it's only the first step to business success.


The next step is to define it as a Job Statement following the formula below:

[Verb] + [Object of the verb] + [Contextual Clarifier]


Let’s take Facebook as an example. What’s the Job to be Done?


If you use Facebook, I want you to take a second to think about - WHY you use it.


According to Facebook, their platform allows people to fulfill a basic human need:


The need for a sense of belonging and connection.

Now, let’s use the Job Statement Formula to define this job:


Connect people and foster relationships + social networking platform + global tech company.


With this job in mind, Facebook’s efforts to improve the ease of personal connections make so much more sense, right?


The trick is:


A business needs to start with the Job to be Done.


Only once it’s defined and shared company-wide, can the business see tremendous success.


WHY is this theory important?


Successful companies build their products as solutions to customers' challenges

Do you know what’s the main difference between Unicorns and companies that went bankrupt?


If you asked Tony Ulwixk and Clayton Christensen, here’s what they’d say:


Successful companies are customer-centric (source).


They built their products as solutions to customers' challenges; as enhancements designed to make our lives better.


Product → Solutions


Revenue growth becomes (easily) achievable when looking at products as solutions.


If you think about it, it makes perfect sense:


making your customers' jobs easier will make them come back for more.


That said, this theory would bring success only if it's used across the entire company:

  1. Product prioritizes feature requests and customer feedback.

  2. Marketing uses tailored messages addressing motivations and pain points.

  3. Sales adopt Customer Centricity and position their product as a solution.

  4. Customer Service addresses underlying issues, hence improving customer experience.


And of course, your Leadership Team should set an example for all other employees:

  1. Clearly communicate the value proposition of the solution.

  2. Align the strategy and roadmap with their customers' jobs, challenges, and desired outcomes.

  3. Empower employees to be customer-centric and think outside of the box.

 

Final Thoughts...


The Jobs-to-be-Done theory helps businesses grow by focusing on customers' needs and problems.


Keep an eye out for Part Two to learn how you can increase your team's success with this theory.


📬 Subscribe to CS Spotlight now to get Part Two straight to your inbox!

 

Additional Resources

Jobs-to-be-Done by Strategyn: https://strategyn.com/jobs-to-be-done/.

Jobs-to-be-Done Training & Certification: https://strategyn.com/odipro/


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