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    June 7, 2024

    Equity Value Creation with Jobs-to-be-Done

    DALL·E 2024-06-07 16.41.10 - A professional business setting with a diverse team brainstorming and discussing around a large table with charts, graphs, and a whiteboard. The white

    The Challenge: Growing Revenue in a Tough Market

    The current economic climate presents significant challenges for private equity firms. With rising interest rates and declining exit multiples, the pressure is on to find ways to boost revenue without sacrificing EBITDA. Many firms turn to cost-cutting and operational efficiencies as the quickest routes to equity value creation. While these methods can provide short-term relief, they often fail to deliver sustainable growth and can even undermine long-term value. This post is a brief overview of how thrv uses Jobs-to-be-Done to create equity value through growth. For more detail, download our Executive White Paper.

    The JTBD Approach: A Customer-Centric Solution

    At thrv, we’ve developed a proven platform for equity value creation using the Jobs-to-be-Done (JTBD) methodology. This approach focuses on understanding and fulfilling the underlying needs and goals of customers, rather than just focusing on product features. By identifying what jobs customers are hiring products to do, we can pinpoint unmet needs and create strategies that resonate more deeply with the market.

    Creating Better Marketing and Sales Tactics

    One of the key benefits of the JTBD framework is its ability to refine marketing and sales efforts. Traditional methods often rely on broad demographic or psychographic profiles, but JTBD digs deeper. It identifies the specific jobs customers need to get done and tailors marketing messages and sales tactics to address these needs directly. This results in higher engagement, better lead generation, and improved conversion rates.

    Innovating for Revenue Growth

    By focusing on the unmet needs of underserved segments who are willing to pay to get the job done better, thrv helps portfolio companies identify opportunities for new product development that directly address unmet needs. This not only drives revenue growth but also positions companies as market leaders, able to command higher prices and achieve better multiples at exit.

    Case Studies: Proven Success in Value Creation

    • Biscom: By understanding their customer’s JTBD, Biscom identified opportunities to upsell their current customers with more resonant sales messages. They tripled their growth rate and exited with an expanded multiple, just two years after their sponsor acquired them. 
    • AutoQuotes: Utilizing JTBD, AutoQuotes saw new products contribute to over 30% of their new bookings, showcasing the power of aligning product development with customer needs.
    • Oversight: By focusing sales messaging on job beneficiaries and their JTBD rather than just the product features, Oversight dramatically improved their competitive win rate, leading to a successful exit.

    The Result: Superior Equity Value Creation

    By using the JTBD framework, thrv enables private equity firms to create significant equity value through revenue growth. This method reduces the risk associated with growth investments and provides a clear path to achieving superior returns. Our platform integrates proprietary software, services, and training to ensure that portfolio companies can execute optimal growth strategies effectively.

    In a market where operational efficiencies alone are not enough, thrv’s JTBD approach offers a powerful alternative for private equity value creation. By focusing on customer needs and innovating to meet those needs, companies can drive sustainable revenue growth, expand multiples, and achieve superior equity returns. With interest rates rising and exit multiples falling, there’s never been a better time to adopt a growth strategy centered on Jobs-to-be-Done.

    Posted by Jay Haynes

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