1
00:00:06,690 --> 00:00:08,310
- Welcome to lesson three.

2
00:00:08,310 --> 00:00:12,360
So let's talk about how do
we get to know your customer.

3
00:00:12,360 --> 00:00:14,220
In order to understand customer needs

4
00:00:14,220 --> 00:00:16,080
from a product perspective,

5
00:00:16,080 --> 00:00:20,820
we need to define the
job to be done, JTBD.

6
00:00:20,820 --> 00:00:23,460
It reflects the underlying user needs.

7
00:00:23,460 --> 00:00:27,630
This theory was popularized
by Clayton Christensen

8
00:00:27,630 --> 00:00:30,060
who was a Harvard University professor

9
00:00:30,060 --> 00:00:34,770
when he was researching
innovation to meet user needs.

10
00:00:34,770 --> 00:00:38,220
Jobs in this context are foundational

11
00:00:38,220 --> 00:00:41,310
for understanding what is
the customer motivation

12
00:00:41,310 --> 00:00:44,550
and why customers behave
the way that they do.

13
00:00:44,550 --> 00:00:46,800
The JTBD framework focuses

14
00:00:46,800 --> 00:00:50,310
on the why behind customer behavior.

15
00:00:50,310 --> 00:00:54,270
In his famous lecture on the
topic of jobs to be done,

16
00:00:54,270 --> 00:00:57,300
professor Christensen
described research that he

17
00:00:57,300 --> 00:01:00,990
and his team have done to
improve milkshake consumption

18
00:01:00,990 --> 00:01:02,163
at McDonald's.

19
00:01:03,390 --> 00:01:06,810
When the visitors were asked
to taste new milkshake flavors

20
00:01:06,810 --> 00:01:08,610
and share their preferences,

21
00:01:08,610 --> 00:01:10,680
the improvements didn't really influence

22
00:01:10,680 --> 00:01:12,990
the product consumption in any way,

23
00:01:12,990 --> 00:01:15,900
no matter how they changed the flavor.

24
00:01:15,900 --> 00:01:19,650
Then they decided to do
research in a different way.

25
00:01:19,650 --> 00:01:21,904
The researchers were observing the reasons

26
00:01:21,904 --> 00:01:25,350
why the customers were
hiring the milkshake

27
00:01:25,350 --> 00:01:28,740
and what was the job that
milkshake was doing for them.

28
00:01:28,740 --> 00:01:32,370
So they found out that most
milkshakes were consumed

29
00:01:32,370 --> 00:01:34,710
in the morning, when people were going

30
00:01:34,710 --> 00:01:37,890
to work, frequently driving, and the drive

31
00:01:37,890 --> 00:01:40,260
to work was really boring for them.

32
00:01:40,260 --> 00:01:44,460
So the respondents revealed
that they tried to hire,

33
00:01:44,460 --> 00:01:46,020
and first they hired bananas

34
00:01:46,020 --> 00:01:48,720
and donuts as competitors to milkshakes,

35
00:01:48,720 --> 00:01:50,670
but neither one was a good competitor

36
00:01:50,670 --> 00:01:52,950
because banana was gone in three minutes

37
00:01:52,950 --> 00:01:56,400
and donut was too messy to eat in the car.

38
00:01:56,400 --> 00:01:58,920
The milkshake though, was
taking over 20 minutes

39
00:01:58,920 --> 00:02:03,660
on average to consume, it fit
well in a car cup holders,

40
00:02:03,660 --> 00:02:06,510
and it was feeling enough
so that they didn't have

41
00:02:06,510 --> 00:02:08,790
to eat any meal until lunch.

42
00:02:08,790 --> 00:02:11,280
So in some, they found
out that competitors

43
00:02:11,280 --> 00:02:15,030
to the milkshake were not
milkshakes of different flavors,

44
00:02:15,030 --> 00:02:18,690
but rather bananas,
donuts, and some snacks.

45
00:02:18,690 --> 00:02:21,870
So as a result, they
improved the checkout system

46
00:02:21,870 --> 00:02:25,470
to make it faster, established drive-thru,

47
00:02:25,470 --> 00:02:29,490
and also helped people in
many ways not to lose any time

48
00:02:29,490 --> 00:02:30,690
on their way to work

49
00:02:30,690 --> 00:02:34,260
and also make the milkshakes last longer.

50
00:02:34,260 --> 00:02:37,110
For that, they put any
pieces of fruit and berries

51
00:02:37,110 --> 00:02:40,290
in the milkshake, but also not too thick

52
00:02:40,290 --> 00:02:41,790
to get stuck in this straw.

53
00:02:41,790 --> 00:02:44,550
And also, they make the drink thicker

54
00:02:44,550 --> 00:02:46,590
so that it lasted longer.

55
00:02:46,590 --> 00:02:50,820
And all of this significantly
improved the consumption.

56
00:02:50,820 --> 00:02:54,300
So as a simple way of
explaining JTBD theory,

57
00:02:54,300 --> 00:02:58,290
if a consumer goes to a store
to buy an electric bulb,

58
00:02:58,290 --> 00:03:00,180
their goal is not to buy a bulb,

59
00:03:00,180 --> 00:03:04,830
the ultimate goal is to make
the house well lit at night.

60
00:03:04,830 --> 00:03:06,630
So that's the job to be done.

61
00:03:06,630 --> 00:03:09,990
So the value of a computer
is not to provide a keyboard

62
00:03:09,990 --> 00:03:14,670
to type commands, it is to
process and retrieve information.

63
00:03:14,670 --> 00:03:15,930
Similarly, the invention

64
00:03:15,930 --> 00:03:18,420
of the single button
smartphone address this

65
00:03:18,420 --> 00:03:20,550
in a brilliant way.

66
00:03:20,550 --> 00:03:24,870
The job to be done is
not to have more buttons,

67
00:03:24,870 --> 00:03:29,640
it is to make any command
very simple to execute.

68
00:03:29,640 --> 00:03:32,490
So the concept of job to
be done is the next step

69
00:03:32,490 --> 00:03:35,490
in product adoption, because
it extends the concept

70
00:03:35,490 --> 00:03:40,083
of a product to the value that
it provides to the customer.

71
00:03:41,040 --> 00:03:43,203
So now let's review a case study.

72
00:03:44,820 --> 00:03:48,300
In his article Jobs-to-be-Done Case Study:

73
00:03:48,300 --> 00:03:51,150
Beware of Lead Users, Tony Ulwick,

74
00:03:51,150 --> 00:03:54,600
who was the pioneer of jobs
to be done theory discussed

75
00:03:54,600 --> 00:03:57,630
a global medical diagnostic
software company.

76
00:03:57,630 --> 00:03:59,820
Let's call it GMDS.

77
00:03:59,820 --> 00:04:03,660
So this company was a leader
in medical diagnostic software,

78
00:04:03,660 --> 00:04:05,850
but it experienced a steady decline

79
00:04:05,850 --> 00:04:07,920
in demand of their software.

80
00:04:07,920 --> 00:04:10,050
They were continuously collecting feedback

81
00:04:10,050 --> 00:04:12,360
from their power customers,

82
00:04:12,360 --> 00:04:16,950
the best specialists in the
field, most advanced ones

83
00:04:16,950 --> 00:04:19,710
and the company worked really
hard to understand the needs

84
00:04:19,710 --> 00:04:21,840
of those lead users and made them part

85
00:04:21,840 --> 00:04:24,033
of their customer advisory board.

86
00:04:24,870 --> 00:04:27,330
So that worked really, really well.

87
00:04:27,330 --> 00:04:30,420
Those lead users became an integral part

88
00:04:30,420 --> 00:04:33,270
of the company's innovation
and development practices.

89
00:04:33,270 --> 00:04:35,790
They provided feedback,
and this feedback were used

90
00:04:35,790 --> 00:04:38,790
to deliver new features,
but despite all of that,

91
00:04:38,790 --> 00:04:39,810
the company position

92
00:04:39,810 --> 00:04:43,470
in the marketplace was
continuously declining.

93
00:04:43,470 --> 00:04:46,380
So in order to address the
challenge, the company decided

94
00:04:46,380 --> 00:04:50,610
to use JTBD analysis,
and customer segmentation

95
00:04:50,610 --> 00:04:53,820
that was appropriate
for this group of users.

96
00:04:53,820 --> 00:04:56,250
And they looked at highly
experienced as well

97
00:04:56,250 --> 00:04:59,460
as less experienced
physicians in their analysis.

98
00:04:59,460 --> 00:05:02,490
So to do so, they captured
desired outcome statements

99
00:05:02,490 --> 00:05:05,310
from approximately 170 users.

100
00:05:05,310 --> 00:05:09,150
It was very interesting
what they found out.

101
00:05:09,150 --> 00:05:12,330
They saw that lead physicians
did not really represent

102
00:05:12,330 --> 00:05:13,710
the customer market.

103
00:05:13,710 --> 00:05:17,760
They represented only 21%
of the physician population.

104
00:05:17,760 --> 00:05:21,780
And on top of that, the company
found out that physicians

105
00:05:21,780 --> 00:05:25,350
in this specific observed
segment were not at all dependent

106
00:05:25,350 --> 00:05:26,850
on the diagnostic software

107
00:05:26,850 --> 00:05:30,240
to make an accurate patient diagnosis.

108
00:05:30,240 --> 00:05:33,150
They were lead users, so they
had the experience, knowledge

109
00:05:33,150 --> 00:05:35,280
and all the skills that they needed

110
00:05:35,280 --> 00:05:37,800
to make this accurate
diagnosis on their own.

111
00:05:37,800 --> 00:05:40,320
So they only used the software to verify

112
00:05:40,320 --> 00:05:41,820
that they were correct.

113
00:05:41,820 --> 00:05:44,217
But in contrast, the 79%,

114
00:05:44,217 --> 00:05:47,070
all the remaining physicians
were highly dependent

115
00:05:47,070 --> 00:05:49,020
on the diagnostic software

116
00:05:49,020 --> 00:05:51,720
because they needed it to
gather the needed information

117
00:05:51,720 --> 00:05:53,880
and make the proper diagnosis.

118
00:05:53,880 --> 00:05:56,880
So these needs were basically
different from those

119
00:05:56,880 --> 00:05:58,230
of all the lead users.

120
00:05:58,230 --> 00:06:01,200
They needed to see the details,
understand the reasoning.

121
00:06:01,200 --> 00:06:04,950
They wanted the system to
generate a very detailed script

122
00:06:04,950 --> 00:06:08,463
and they wanted to share
the script with the patient.

123
00:06:09,420 --> 00:06:11,940
So because the company
in this case was focused

124
00:06:11,940 --> 00:06:15,240
on its lead users without
understanding the outcomes desired

125
00:06:15,240 --> 00:06:19,530
by the remaining 79%, which
were the target market,

126
00:06:19,530 --> 00:06:21,030
they failed to understand the needs

127
00:06:21,030 --> 00:06:23,190
of the underserved customers.

128
00:06:23,190 --> 00:06:25,080
This way, this company put themselves

129
00:06:25,080 --> 00:06:27,660
in a position of declining market share.

130
00:06:27,660 --> 00:06:29,940
So the lesson learned here for us is

131
00:06:29,940 --> 00:06:33,240
that the importance of
tying the product strategy

132
00:06:33,240 --> 00:06:37,380
to understanding unmet customer
needs is most important.

133
00:06:37,380 --> 00:06:39,510
By using the JTBD approach,

134
00:06:39,510 --> 00:06:42,030
the company management was eventually able

135
00:06:42,030 --> 00:06:44,220
to deliver products that met the needs

136
00:06:44,220 --> 00:06:45,750
of their target audience,

137
00:06:45,750 --> 00:06:48,480
and they got their business back on track.

138
00:06:48,480 --> 00:06:52,350
So it creates use case
about how powerful it is

139
00:06:52,350 --> 00:06:54,810
to understand who your users are

140
00:06:54,810 --> 00:06:56,763
and be able to meet their needs.