3 Things Successful Companies Know about their Customers

Successful companies are built on products that are valuable for people.

What are the 3 most important things you should know about your customers to insure that your products will be valuable for them?

Companies knows a lot about their customers,

but,

over 85% of them do NOT know the really important things,

  • That explain causality – WHY they are choosing & using your product.
  • That should be the base for your entire product strategy
  • That are the base for finding a blue ocean
  • That are the key for real differentiation from the competition
  • That should be the base for your value proposition ( Attract the right customers, Increase your conversion rates,..)

#1:  What are they REALLY trying to do (Job-To-Be-Done)

Your product/service must help a customer with a “Job” he is trying to accomplish

The JOB is not to use your product – it is something else,

Something that they will do regardless of YOUR product

They may “Hire” your product to help them get this JOB done Better/Cheaper.

Customers don’t get up in the morning with a desire to buy/use your product,

Customers don’t wantThey actually want ( the job)
to buy a copy of The Guardian, The Wall Street Journal or The New York Timesto know what is happening in the area that interest them
to buy Nike’s sport shoes ( or Adidas )to hike in nature, or maybe lose weight or maybe win the local marathon
To buy colgate toothpasteTo prevent caries & have a fresh breath

Your product/service is only a possible solution to help them get a job done.

They will “hire” the best solution to help them do it better/faster/easier.

This companyIs helping people do the job
Waze Driving from one place to another
Tinder Finding a romantic partner
LululemonLive longer, healthier, fun lives
FedexGetting a package from here to there
AirbnbExperience a place like a local

Ask yourself:

What is the main job your product/service is helping people get done?

#2:  What is the exact Context

Your product/service must be optimized for a specific context

Many customers have the same “Job”

But they should be segmented and grouped by the specific context of the job.

Because each context dictate a different set of capabilities/features/ux in your product

And you can’t create a product that will answer ALL of them better than other products.

You can only do this for a limited set.

If for example, we take the job of “Driving from one place to another”

consider the following contexts:

  • The daily commute – to your work and back
  • Driving in a beautiful foreign country during a vacation with the family
  • Driving to the hospital when your wife is about to give birth screaming with pain

In each of those contexts ( set of situational circumstances) :

  • Certain needs becomes more important, other needs become less important
  • Certain concerns become more prominent
  • Certain resources become less available
  • Certain capabilities becomes less effective

This is why context is the main segmentation/grouping parameter !!!

It explains WHY someone will hire a certain solution

(The problem with demographic for example, that in the best case it might correlate – but it doesn’t explain why !)
Some common attributes of context :

  • When ( Season, Month, Weekday, daytime, occasion,..)
  • How ( Device in use, …)
  • Where ( an airport, at home, at work, driving a car, foreign country, taking a bus,..)
  • With who ( alone, colleagues, children, wife, date,..)
  • Limited resources ( Time, money,…)

Ask yourself:

What is the unique context of people who use your product/service?

Segmentation of customers should be around the context of the “job” they are trying to accomplish Click To Tweet

#3: What are their Game Changing Success Parameters

When your customer is trying to do a specific job within a specific context

What are the parameters that:

Matters to him the most AND are Un-satisfied by any other solution ?

Those are the Game Changing Success Parameters (GCSP)

The structure of GCSP should always be the same:

customer needs

Let’s see what are the GCSP for several contexts for the job of “Recover from a surgery”:

Job executorsGame changing success parameters
independent business ownersMinimize the time to recover from the surgery
people with weak immune systemMinimize the likelihood to get infections
people with low confidenceMinimize the anxiety I feel + Minimize the fear I feel during the recovery
people with a very busy family membersMinimize the loneliness I feel during the recovery

There are 3 types of GCSP’s:

  1. Functional – The actual progress in getting the job done
  2. Emotional – how people feel about themselves when they are using a solution to get the job done.
  3. Social – how other people are perceiving the customer while he is trying to get the “job” done

In case you wish to learn more about the amazing impact of GCSP – Here is an In-depth Case study of designing a product using this framework.

Ask yourself:

Do you know what are the GCSP’s for people who use your product ?

What’s Next?

Once you will have the answer to the above 3 questions ( JTBD, Context, GCSP)

you are in a far better place than most of your competitors

Now you are able to:

  • Align your entire company around what matters the most for your customers.
  • Map the opportunity landscape and Generate/Optimize your product Strategy.
  • Manipulate the usual parameters + GCSP and find blue oceans for your products.
  • Compose value proposition that will attract the right customers and dramatically increase your conversion rates.
  • Navigate your company towards real differentiation from the competition.

In the next few weeks I am going to write detailed guides on all those subjects ( opportunity landscape, finding blue oceans, optimizing value propositions and more)

so be sure to subscribe so you will NOT miss any of them

I’ll be happy to hear any feedback/questions you have

feel free to comment below

or send me an email to: Alon@ProEnlighten.com

 

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