In “Competing Against Luck: The Story of Innovation and Customer Choice,” Clayton M. Christensen and his co-authors offer a revolutionary perspective on understanding customer behaviour and driving innovation. The core of this book revolves around the Jobs-to-be-Done (JTBD) theory, which delves into the real reasons why customers choose to buy products or services.
The Jobs-to-be-Done Theory
Traditional methods of analysing customer demographics often only reveal correlations, not the underlying causations. Christensen emphasises that knowing why people buy is crucial for true innovation.
We “hire” products to fulfil specific tasks or solve problems in our lives. This can range from the mundane, like choosing a milkshake for a morning commute, to more significant decisions, such as purchasing a car. By understanding these jobs, businesses can better cater to customer needs.
Christensen illustrates the JTBD theory with compelling examples:
- Uber addressed the dissatisfaction with urban transportation, disrupting the industry.
- Japanese car manufacturers focused on understanding and eliminating defects to improve their offerings.
- Facebook competes with cigarettes by providing a social space for breaks.
- The Segway, despite its innovation, failed because it didn’t meet widespread demand.
Opportunity in Non-Consumption
One intriguing aspect Christensen explores is the opportunity in non-consumption—when potential customers choose to do nothing. Identifying and addressing these unmet needs can unlock significant market opportunities. For instance, Southern New Hampshire University (SNHU) successfully targeted online learners, differentiating them from traditional students.
Identifying Jobs-to-be-Done
Christensen provides five practical ways to uncover these jobs:
- Observing jobs in your own life.
- Finding opportunities in non-consumption.
- Identifying workarounds.
- Noticing tasks people avoid.
- Spotting unusual uses of products.
The Four Forces of Progress
Customer decisions are influenced by various factors, including anxieties about new solutions and the push for progress. For example, the seemingly impulsive purchase of a mattress often stems from months of struggle and research.
Creating Purpose Brands
Brands that align themselves closely with specific jobs can charge premium prices and become irreplaceable in customers’ minds. IKEA’s holistic approach to furniture shopping and Amazon’s commitment to customer-centric processes are prime examples.
Maintaining Focus Post-Launch
It’s easy to lose sight of customer jobs after a product launch. Christensen warns against this drift, highlighting how the brand V8 successfully repositioned itself from just another drink to a vegetable alternative, staying relevant by focusing on customer jobs. However, they lost their focus in later years.
Broader Applications of JTBD
The JTBD theory isn’t limited to business—it can apply to personal relationships, healthcare, and more. For instance, understanding what jobs friends or healthcare providers are hired to do can lead to more meaningful interactions and better services.
“Competing Against Luck” by Clayton M. Christensen is a must-read for anyone looking to innovate predictably and effectively. By focusing on the jobs customers need done, businesses can create products and services that truly resonate, making success a matter of strategy rather than chance.