Messaging & Positioning

Marketing to Customer Needs and What Cicret Can Learn from Salesforce

If you haven’t already, take a look at the Cicret Bracelet video. In just over two years, it has over 25 million views on YouTube. It’s a water-resistant bracelet that projects your smartphone’s screen onto your arm. Advertised as a “tablet for your skin,” the not yet released Cicret Bracelet is clearly garnering attention.

But will people buy a Cicret once it’s launched? In other words, will sales grow as fast as their YouTube views?

In order to answer such questions at thrv, we use Jobs-to-be-Done, a product innovation theory popularized by Clay Christensen of Harvard Business School. The key idea is, “Your customers aren’t buying your product, they are hiring it to get a job done.”

The question that leads to understanding Cicret’s potential is, “What job would you hire the Cicret Bracelet to do?”

According to the product video, the answer is interface with your smartphone.

Purchases occur when people struggle with getting a job done. Does anyone struggle enough with interfacing with their smartphone to buy a new product? In other words, are there unmet needs in this job?

Cicret’s product video opens with someone using the Bracelet in the bath tub. This speaks directly to the unmet need on which Cicret should focus its marketing message in order to realize high-growth sales: reduce the likelihood that the conditions of your environment prevent you from using your smartphone.

In order to sustain its growth, Cicret will need to take a lesson from Salesforce and expand beyond satisfying needs in a consumption job to getting their customers’ functional jobs done better.

Wait! What are consumption jobs and functional jobs?
Consumption jobs are the tasks required to use a product.

For instance, to “consume” a smartphone, you have to:

  • Purchase it
  • Set it up
  • Learn to use it
  • Interface with it
  • Maintain it

These are all “consumption jobs.” They are important, and companies have seen rapid growth by making progress against them. However, consuming a product is always in service to some larger goal a.k.a. “a functional job.”

Functional jobs are the key goals that a person needs to accomplish in their personal or professional lives. Examples are:

  • Acquire customers
  • Reach a destination on time
  • Sell a used car
  • Curate music
  • Enable secure data use
  • Restore artery blood flow

Markets exist because people need to execute functional jobs.

Even though Cicret will eventually want to focus on helping its customers achieve functional jobs, the company can get fast initial growth by serving an unmet need in the consumption job. Cicret can then use their momentum and resources to find new ways to satisfy customer needs in the functional job better than the existing solutions.

Salesforce is a great example of a company that went to market with a focus on serving needs in a consumption job. As the first cloud CRM, it didn’t require an on-premise installation. Salesforce got the “install” consumption job done far better than its competitors.

On-premise software installations were slow and expensive. To “install” Salesforce, its customers just had to create an account on a web site. The Salesforce “installation” took minutes, blazingly fast in comparison to the days or weeks it took to install their competitors’ software.

Salesforce made this advantage a central part of their marketing, calling for “the end of software” and making “no software” a key part of their logo.

In the process, Salesforce enjoyed hockey stick growth and invested the proceeds in getting the functional jobs (“acquire customers” and “retain customers”) done better than their competitors by adding key functionality through product development and acquisitions.

Cicret can follow the Salesforce playbook by focusing its launch message on the needs in the “interface” consumption job, rather than its novel product features (“tablet for your skin“). If it works, they can follow-up on their early success by investing in satisfying unmet needs in the functional jobs.

How does knowing the job and needs help Cicret with marketing?
Philip Kotler, a marketing expert at Northwestern University’s Kellogg School of Management says, “Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit.”

This advice is really helpful if we understand what a customer need is and have agreement across the organization.

What is a customer need? Do your colleagues at your company agree on your customers’ needs?

Jobs-to-be-Done defines a need as “a metric customers use to judge how quickly and accurately they can execute a job.” We structure each need with a direction, metric, and goal. To identify them, we interview people who are trying to execute the job, asking, “What’s difficult, frustrating and time-consuming about executing the job?” This definition, structure, and method for identifying needs gives teams an unambiguous, measurable problem statement around which everyone can align.

What need does Cicret serve?
We can articulate the key need the Cicret Bracelet solves as:

“Reduce the likelihood that the conditions of your environment prevent you from using your phone.”

This is a need in the consumption job “interface with a smartphone,” and the Cicret Bracelet does it better than any other product so far.

The bath tub shot at the beginning of Cicret’s video positions their product as serving this need. If the marketing continues in this vein, it could achieve high-growth at launch.

How does the Cicret reduce the likelihood that the conditions of your environment prevent you from using the hardware? Consider these situations:

  • You’re playing basketball and the phone is next to your gym bag. You’re waiting on an important email, but instead of running over to your bag to check your phone, you can bring the screen up on your arm during downtime on the court.
  • Your cycling to an unfamiliar destination, which means you need the help of a navigation app. It’s inconvenient and unsafe to pull out your phone, but the Cicret Bracelet allows you to glance down at your arm each time you need to check directions.
  • You’ve just arrived at a concert. You’re looking for a friend, but it’s crowded and you don’t want to drop your phone on the ground when there’s a human stampede around you. Simply text your friend right on your arm with the Cicret bracelet.
  • You’re eating chicken wings, and your hands are covered in sauce. Use the Cicret rather than getting your phone greasy.

All of these images can deliver the message of how Cicret satisfies a customer need.

How does Cicret beat the competition?
In tackling this unmet need Cicret goes head-to-head with smartwatches, which also reduce the likelihood that the conditions of your environment prevent you from using your phone. Smartwatches have been struggling to sustain growth as most have failed to move beyond the novelty phase.

Cicret’s marketing can speak to how its larger display and waterproof design serve needs in the job better than a smartwatch. Meeting a need better than your competition drives growth.

Cicret has an opportunity to outpace smartwatches by demonstrating how interfacing with your smartphone is easier with a Bracelet than it is with a smartwatch.

Meanwhile, Cicret will need to keep their attention on Garmin and Apple as they develop fitness trackers and health apps that depend on smartwatches. This work leads the way to smartwatches getting functional jobs done. If Cicret fails to get functional jobs done better, instead of following Salesforce’s path, they will fall far behind the competition.

Marketing to an unmet need in a consumption job can resonate with customers and help companies get off to a great start. It is then critical to invest in the functional job to have a long-lasting business.

A Step-By-Step Guide to Using Clay Christensen’s Competing Against Luck and Jobs Theory to Launch Great Products, Part 2: Answering The Right Question

unmet-needs-whiteboard

This is Part 2 of two-part series explaining thrv’s process for executing Jobs Theory. Part 1 is about customer research you can do to define the right question that will drive your product development. This part is about answering that question.

If you’ve read Part 1 of this series, you know about the first 5 steps to executing Jobs Theory:

  1. Define your customer’s jobs: functional, emotional, and consumption
  2. Identify all of the unmet needs in your customer’s jobs
  3. Find the unmet needs
  4. Segment your customers
  5. Identify competitor weaknesses

This work leads to defining your question:

What can you do to serve your customer’s unmet needs in the job better than the existing solutions?

The next step is to generate great product ideas that answer this question.

Step 6: Generate Ideas
You might have noticed something: in all the steps so far we haven’t had any ideas. The traditional innovation process usually starts with product or solution ideas. An ideas-first process is fundamentally flawed because the goal of innovation is not to generate more ideas, it is to satisfy customer needs better than the existing solutions. Jobs Theory enables you to build a needs-first innovation process.

When I was a product manager at Microsoft in the 1990s, we had a “brainstorming” room where our team would go to spitball new ideas. Anything went. As you probably know, the only rule in brainstorming is “there are no bad ideas.” This was (and is) absurd. There is a nearly infinite supply of bad ideas.

When executing Jobs Theory, you don’t need to “brainstorm” because you have clear criteria to judge product ideas: the unmet customer needs in the job.

When you get your team together to generate ideas, start by writing an unmet need on the whiteboard. Then, ask the room: “What can we do to serve this need?”

It’s still helpful for your team to think out of the box–perhaps your product is a website but a chatbot would serve the need much faster–but now, because you are answering a specific, measurable question, you know whether to keep the idea or move on.

If surgeons were your customers and you wanted to help them “restore artery blood flow,” you’d ask about the unmet need, “Does the idea help surgeons reduce the likelihood of restenosis?”

If drivers were your customer and you wanted to help them “get to a destination on time,” you’d ask “Does the idea help drivers reduce the time it takes to determine if an alternative route should be taken?”

If the ideas don’t satisfy the needs, quickly move onto the next idea. If they do meet the needs, keep them on the list.

Push the team to build on the ideas and achieve step function improvements over the existing solutions. Don’t let them be boxed in by the limitations of your existing product. The sky is the limit. Later, you can plan your roadmap to get there, step-by-step.

Now that you have a list of ideas that serve the unmet customer need, measure how well they do it–how much they improve the probability of achieving the goal as stated in the need.

Stack rank the ideas based on how much more reliably or faster they meet the needs than the existing solutions. If you see an idea that produces a step function improvement–reduces the time from days to hours, minutes to seconds, etc.–you may be sitting on a gold mine.

Jobs theory enables more efficient, precise, and relevant idea generation. Not only can you ensure all the ideas are relevant, but you can see if they are good enough.

Step 7: Price your product.
Pricing typically uses a combination of inputs, including the cost to make the product (or deliver the service), perceived value, and the price of substitute products in the market. Using this last input can be a fatal mistake for both pricing and market sizing.

To know why, you need to understand a pitfall of traditional market sizing: products and technologies come and go.

Traditional market sizing is based on variations of the following equation: the market = product price * the number of units sold. For example, in 2007 the iPod market was huge ($150 * 200 million iPods sold = $30 billion). Microsoft thought this was a big market and launched the Zune, an iPod competitor.

This is what the iPod market looked like at the end of 2011.

screenshot-2016-10-11-14-24-23

The “market” (defined by a product) went away, which means that Microsoft was looking to take a share of virtually nothing. But, of course, the true market, the customer’s job-to-be-done, didn’t go away. The iPod may have gone away, but people didn’t stop executing the job.

Jobs Theory’s definition of a market explains what happened.

There is no such thing as the “iPod” market. Customers don’t want iPods anymore than they want records, cassettes, or CDs. What they want is to get a job done, i.e. create a mood with music.

“Price * units sold” is a flawed definition of a market because it can disappear from right under your feet. Defining the market based on the customer’s job-to-be-done is much more helpful because the job will exist forever and therefore, the market will too.

To execute market sizing with Jobs Theory, you can look at the willingness to pay to get the job done. Willingness to pay can be measured by asking job executors (and if necessary purchase decision makers) how much it is worth to them to get the job done perfectly. The resulting data can be plotted (from high to low) on a line against the number of job executors. We call this a “need curve.”

The area under the curve is the total market size. It will also identify the prices that will place your product at the high end of the market, the low end, or somewhere in between.

In Competing Against Luck, Clay Christensen says, “The reason why we are willing to pay premium prices for a product that nails the job is because the full cost of a product that fails to do the job — wasted time, frustration, spending money on poor situations, and so on — is significant to us.”

By looking at the willingness to pay to get the job done, you can price your product to target the part of the market that will be the most profitable, and you can measure how lucrative that market will be over time, without the risk of it going away.

Step 8: Create messaging and positioning.
Positioning a product in a market and creating messaging that will resonate with customers is quicker and easier using the job-to-be-done and its customer needs.

When messaging misses the mark, it is usually because the message is focused on the product and its features. For example, Magellan messaged to potential customers that its RoadMate product has a “Wide-Angle Lens” and a “G-shock Sensor,” both sophisticated technologies.

But how does a Wide-Angle Lens or a G-shock Sensor help a driver get to a destination on time? What need is it satisfying? If messaging describes the product features or technology, the customer has to figure out on their own how (and if) the features help them get the job done better.

Messaging based on satisfying the job-to-be-done is easier for customers to understand. And because the needs in the job-to-be-done are prioritized based on importance and satisfaction, you can create messages based on the most underserved customer needs in your market.

Step 9: Plan your roadmap.

“Jobs Theory enables innovators to make the myriad, detailed tradeoffs in terms of which benefits are essential and which are extraneous to a new offering.”

–Clay Christensen, Competing Against Luck

The unmet needs in the job-to-be-done are your basis for making smart tradeoffs. Each job typically has about 100 customer needs. You can prioritize the needs by calculating the difference between the importance and satisfaction scores. The needs with higher importance and lower satisfaction are top priority. When you’re choosing which product features to build now and which to postpone–making tradeoffs–you choose the features that meet the top priority needs.

The same mindset can be used to plan your road map. A great road map will balance cost, today’s impact, and tomorrow’s promise. During your idea generation, you may have come up with some brilliant ideas that will take a long time to build or be very expensive to execute. This doesn’t mean you should ditch them. You just need to figure out how to increment your way to the brilliant idea while meeting customer needs better and better along the way.

This is step 1 of your road map planning: Determine the incremental improvements that will take you from where you are today to where you want to be tomorrow, getting the whole job done faster and more reliably than the existing solutions. Step 2 is to determine which of those incremental improvements to tackle first. The criteria for this prioritization is the extent to which the improvements serve unmet needs. You prioritize the work that tackles the most important and least satisfied needs.

Without good customer metrics, such as needs in the job-to-be-done, companies often prioritize their roadmap based on a flimsy projection of business impact, the charisma of people lobbying for the features they like, and the “HiPPO” (the Highest Paid Person’s Opinion). All of these methods are subjective and/or based on unreliable premises.

Your product roadmap (and your tradeoffs) should not be prioritized by your team. They should be prioritized by your customer’s unmet needs in the job.

Step 10: Mitigate your risk.
Understanding what causes a customer to purchase (“hire”) a product can help you mitigate product development risk.

Competing Against Luck points out, “In 2015… one thousand publicly held companies spent $680 billion on research and development alone.” And yet, “Most people would agree that the vast majority of innovations fall far short of ambitions, a fact that has remained unchanged for decades.”

Once a product enters development, companies spend an enormous amount of capital, time, and resources on building, marketing, and selling the product. Jobs theory can help you avoid product failure and ensure the roadmap will generate the revenue and profit growth needed to justify the investment.

Failure occurs when a product does not create customer value in a market. What is “customer value?”

Customer value is a measure of the difference of customer satisfaction with getting the job done between your solution and the existing solutions. Since the goal is to satisfy customer needs and needs are metrics related to speed and accuracy, you can compare the speed and accuracy of getting the job done with your solution vs. a competitive solution. That difference is the customer value you’ve created.

satisfaction-chart-001

Market opportunities exist because a person is struggling to get the functional job done. Improving the speed and accuracy of getting the job done reduces struggle and anxiety, which increases customer satisfaction and the likelihood they will hire your product.

This means you can measure the value of an idea even before you build it. Consider how much faster and more accurately your idea will meet the needs in the job if your idea is executed perfectly. Compare that to the baseline–the current satisfaction levels with each need in the job. You now know if the idea adds value to the market, so you’ve mitigated the risk of your idea. You still have execution risk, but your situation is a lot better than the risk of executing perfectly on an idea that does not add value in your market.

Step 11: Accelerate your growth.
Steps 1 through 10 are all the preparation steps to launching your product and accelerating your revenue growth. Jobs theory gives you a different lens through which to view your market, your customer, and your competition. It gives you powerful, metric-driven, customer-centric techniques to identify unmet needs and competitor weaknesses. And it gives you the tools to generate great product ideas that customers will pay for and to create messages that will resonate with customers.

Jobs theory is not easy to practice, but it is extremely effective if you make the organizational changes required to execute it well. As Clay writes, “Organizations typically structure themselves around function or business unit or geography — but successful growth companies optimized around the job. Competitive advantage is conferred through an organization’s unique processes: the ways it integrates across functions to perform the customer’s job.”

If you are interested in learning more about jobs-to-be-done techniques that you can use at your company, feel free to contact me directly.