The Right Way To Set Goals for Growth: Knowing Your Customers' "Jobs to Be Done"

The Right Way To Set Goals for Growth: Knowing Your Customers' "Jobs to Be Done"

When it comes to setting goals for growth, the best approach is to set absolute goals that focus on key metrics such as the number of active users and a decrease in churned users. Absolute numbers are what truly matter in measuring growth, as teams should take credit for their actions rather than relying on natural occurrences. For example, if you solely focus on growing traffic to a country with lower conversion rates, such as Germany, instead of a country with higher conversion rates like the U.S., you may achieve your traffic goals but fall short on signup goals. It's crucial to consider the activation rate, which is calculated by dividing activated users by total users. To improve this metric, you can either increase activated users or decrease total users.

The concept of "Jobs to Be Done" is a powerful framework for understanding customer needs and driving innovation. Rather than solely focusing on correlation and gathering extensive customer data, companies should concentrate on the progress that customers are trying to make in specific circumstances. This progress, known as the job to be done, is what customers hope to accomplish. When we purchase a product, we essentially "hire" it to help us fulfill a specific job. If the product performs well and meets our expectations, we are likely to hire it again when faced with the same job. On the other hand, if the product fails to deliver, we "fire" it and seek alternatives.

Understanding the job to be done provides companies with a unique opportunity to differentiate their offerings in ways that competitors are unlikely to imitate or even comprehend. Jobs are complex and multifaceted, requiring precise definition. They are more important than customer characteristics, product attributes, new technologies, or trends. Jobs encompass not only functional aspects but also powerful social and emotional dimensions. By deeply understanding a job, companies can innovate without having to guess what trade-offs their customers are willing to make. It becomes a job specification, guiding product development.

Innovation and long-term competitive advantage are not solely derived from the product itself, but also from the experiences, stories, and connections it enables. Competitors may see themselves in the same business but fail to recognize the true value lies in the experiences associated with the product. For example, a doll company may focus on the dolls as a physical product, while a successful company understands that it's the experiences, stories, and connections facilitated by the dolls that truly matter.

Processes play a crucial role in supporting the job to be done. While they may be challenging to observe, processes are of profound importance. Aligning processes with the job to be done provides clear guidance to the entire team, ensuring that the insights that initially brought success are not unintentionally abandoned. It's essential to consider the experiences that will help customers make progress in their desired circumstance, identify obstacles that must be removed, and understand the social, emotional, and functional dimensions of the job.

In conclusion, setting goals for growth requires a focus on absolute metrics such as active users and churned users. Understanding your customers' "Jobs to Be Done" provides a valuable framework for driving innovation and differentiation. By delving deep into the job customers are trying to accomplish, companies can create products and experiences that meet their needs. It's crucial to consider the social, emotional, and functional dimensions of the job and align processes to support the job to be done. Three actionable pieces of advice to implement from this article are:

1. Set absolute goals that focus on key metrics to measure growth accurately.
2. Understand the job your customers are trying to fulfill in specific circumstances and use it as a guide for innovation.
3. Align processes within your company to support the job to be done, ensuring that insights and success are not unintentionally abandoned.

By implementing these strategies, companies can set themselves on a path towards sustainable growth and customer satisfaction.