Clay Christensen: The Jobs to be Done Theory

Summary

McDonald's sought to boost milkshake sales by understanding the 'job' customers needed them to do. Through observation, they discovered that milkshakes were often purchased early in the morning by individuals for a long, boring drive to work, seeking something to keep them engaged and full until 10 a.m. This insight led to a broader view of the market, considering competitors not just within the milkshake category but also from other food items like bananas, donuts, and bagels, ultimately increasing milkshake sales sevenfold.

Takeaways

• 📊 McDonald's uses sophisticated marketing and data analysis to understand their customers.
• 🧐 Initial attempts to improve milkshake sales by asking customers directly didn't increase sales or profits.
• 🕵️‍♂️ Understanding the 'job' customers hire a product to do is crucial for innovation.
• 🚗 McDonald's milkshakes were often purchased by individuals early in the morning for consumption during a long drive to work.
• 🕒 The milkshakes were bought primarily before 8:30 AM, indicating a specific usage pattern.
• 👤 Customers were typically alone and took the milkshakes with them in their cars.
• 🤔 Customers were seeking a product that would keep them engaged and full during a long commute.
• 🍩 Competitors to milkshakes included not only other milkshakes but also donuts, bagels, bananas, and Snickers bars.
• 📈 Viewing the market broadly, including all potential competitors, can significantly increase the perceived market size.
• 💡 By understanding the job to be done, companies can innovate to better meet customer needs and expand their market.
• 🌟 The insight led to a sevenfold increase in milkshake sales in areas where it was implemented.

Q & A

What was McDonald's goal in approaching their milkshake product line?

McDonald's aimed to innovate their milkshake product line to increase sales by understanding what customers wanted in a milkshake.

What did McDonald's initially do to try to improve their milkshakes?

McDonald's invited people fitting the milkshake customer profile into conference rooms to ask them questions about how to improve the milkshakes.

Why did McDonald's initial approach to improving milkshakes fail to impact sales?

The initial approach failed because it did not address the underlying job that customers were trying to get done by purchasing a milkshake.

What was the unconventional approach taken to understand the job customers were trying to get done with a milkshake?

The approach involved observing customers in McDonald's for 18 hours, noting when they bought milkshakes, what they wore, if they were alone, if they bought other food, and where they consumed the milkshake.

What was the surprising discovery about when milkshakes were mostly sold?

About half of the milkshakes were sold before 8:30 in the morning, and these customers were always alone and drove off with their milkshakes.

How did the researchers confront customers to understand their milkshake purchase?

Researchers positioned themselves outside the restaurant to ask customers why they bought a milkshake at 6:30 in the morning.

What were the alternative options customers considered before buying a milkshake?

Customers considered donuts, bagels, Snickers bars, and bananas as alternatives to milkshakes.

What was the 'job' that customers were trying to get done by buying a milkshake?

The job was to have something that would keep them engaged during a long and boring drive to work and also keep them full until 10 o'clock.

How did understanding the job to be done change McDonald's perspective on their competition?

Understanding the job to be done made McDonald's realize that their competitors were not just other milkshakes but also other food items like bananas, donuts, and bagels.

What was the impact of this insight on the milkshake market size?

When implemented, the market size for milkshakes turned out to be seven times bigger than initially thought, as it included a broader range of customer needs and preferences.

What is the importance of understanding the job to be done in market analysis?

Understanding the job to be done is crucial for market analysis because it reveals non-obvious customer needs and preferences, leading to a more accurate understanding of market size and potential.