Competing Against Luck
Unveils how to innovate by understanding customer’s underlying needs.
Summary of 7 Key Points
Key Points
- Introduction to ‘Jobs to Be Done’ Theory
- Differentiating between customers and consumers
- The importance of understanding customer jobs
- Identifying job drivers in various markets
- Developing products that customers will hire
- Implementing the theory for business growth
- Case studies illustrating successful application
key point 1 of 7
Introduction to ‘Jobs to Be Done’ Theory
The ‘Jobs to Be Done’ Theory, as elucidated, revolves around the idea that consumers ‘hire’ products or services to get a job done. This theory moves beyond traditional demographic or psychographic segmentation, suggesting that by understanding the job for which customers hire a product or service, companies can more accurately develop and market their offerings. The job encompasses the progress that the customer is trying to make in a particular circumstance, which includes functional, emotional, and social dimensions…Read&Listen More
key point 2 of 7
Differentiating between customers and consumers
The concept differentiating between customers and consumers is rooted in understanding the distinction between who pays for a product or service and who actually uses it. This differentiation is crucial because it can significantly impact how a company designs and markets its offerings. Customers are the ones who make the purchase decision and part with their money, whereas consumers are the end-users of the product or service, who may or may not be the ones making the buying decision…Read&Listen More
key point 3 of 7
The importance of understanding customer jobs
The concept of ‘Jobs to be Done’ is a central pillar in understanding why customers make the choices they do. The idea posits that consumers ‘hire’ products or services to get a job done. From this perspective, the job is the fundamental reason for a purchase, not the customer’s demographic or psychographic profile. Instead of categorizing customers by traditional metrics, the book emphasizes the importance of understanding the job that the customer is trying to accomplish. This shifts the focus from the product to the customer’s underlying need or problem, framing the product as a solution to that problem…Read&Listen More
key point 4 of 7
Identifying job drivers in various markets
The concept of ‘job drivers’ in various markets is central to the ‘Jobs to be Done’ theory expounded upon in the book. According to this perspective, customers ‘hire’ products or services to get a job done. This job is not merely a task but encompasses the progress a customer seeks in specific circumstances. Understanding job drivers is about comprehending the multifaceted nature of these jobs, which include functional, emotional, and social dimensions. A job driver in a market might be the need for speed and convenience in fast food, or the desire for prestige and status in the luxury car market. These drivers dictate the products’ features, marketing strategies, and overall positioning in the market…Read&Listen More
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Developing products that customers will hire
The concept of ‘jobs to be done’ is central to understanding what products customers will ‘hire’ to get a particular job done in their lives. The idea is that customers ‘hire’ products to fulfill specific jobs. A ‘job’ is essentially a progress that a person is trying to make in a particular circumstance. It is not just a task but includes a social and emotional dimension as well. The theory suggests that understanding the job is critical to creating products that customers want…Read&Listen More
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Implementing the theory for business growth
The ‘Jobs to be Done’ theory is central to understanding business growth within ‘Competing Against Luck’. This theory postulates that customers ‘hire’ products or services to get a specific job done. Growth is achieved by understanding the job that customers are trying to accomplish, and then creating products that perform that job more effectively or efficiently than existing solutions. Companies should focus on the job, not the customer demographic, as the primary unit of analysis for innovation…Read&Listen More
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Case studies illustrating successful application
The book provides an examination of how different companies have successfully applied the ‘Jobs to be Done’ theory to innovate and grow. One notable case study is about Southern New Hampshire University (SNHU). SNHU was struggling until its president, Paul LeBlanc, applied the ‘Jobs to be Done’ theory to understand what jobs students were hiring the university to do. By realizing that students were looking for an institution that would fit their lives and help them progress, SNHU restructured its offerings to provide more flexible online courses and supportive services for adult learners. This focus on the job to be done led to substantial growth in its student population and its reputation…Read&Listen More