Value Proposition Design - Customer Segment

Summary

The video script delves into the 'Customer Segment' of a business model, focusing on three key aspects: Jobs, Pains, and Gains. Jobs represent tasks or problems customers aim to resolve, like using Uber for transportation. Pains are the annoyances or obstacles they face in achieving these tasks. Gains are the desired outcomes or benefits, which can range from expected to pleasantly surprising. The script emphasizes prioritizing these elements based on customer importance, using a table to rank them from most to least critical, providing a structured approach to understanding customer needs.

Takeaways

• 🔍 **Customer Jobs**: Understanding what customers are trying to accomplish, whether it's solving a problem, performing a task, or satisfying a need.
• 📈 **Customer Perspective**: Emphasizing the importance of viewing jobs from the customer's point of view to truly understand their priorities.
• 🚫 **Customer Pains**: Identifying the annoyances and obstacles that customers face before, during, or after attempting to complete a job.
• ⚠️ **Severity of Pains**: Recognizing that customer pains can range from moderate to severe, affecting their experience and satisfaction.
• 🌟 **Customer Gains**: Focusing on the desired outcomes and benefits that customers seek, which can be expected, required, or unexpectedly pleasant.
• 📉 **Prioritization**: Advising on the importance of prioritizing jobs, pains, and gains based on their significance to the customer.
• 📊 **Use of Tables**: Suggesting the use of a table to organize and rank the importance of customer jobs, pains, and gains for clarity and strategic planning.
• 🔑 **Importance of Frequency**: Noting that the frequency of a job can make it more important to the customer, influencing their decision-making.
• 🔝 **Outcome Significance**: Highlighting that the significance of the outcome of a job can also determine its importance to the customer.
• 📝 **Documentation**: Encouraging the documentation of customer jobs, pains, and gains to better understand their needs and improve offerings.

Q & A

What are 'Jobs' in the context of customer segmentation?

In customer segmentation, 'Jobs' refer to the tasks or problems customers are trying to solve in their work or life, such as getting a ride to work or being picked up from a location.

Why is it important to describe jobs from the customer's point of view?

Describing jobs from the customer's point of view is crucial because it helps to understand what is important to them, which may differ from what is important to the business or service provider.

How can the importance of a job be determined for a customer?

A job's importance to a customer can be determined by its frequency or the significance of the outcome it leads to, as these factors influence the customer's priorities.

What are 'Pains' in relation to customer experiences?

'Pains' are the negative experiences or obstacles that customers encounter before, during, or after attempting to complete a job, which can range from mild annoyances to severe issues.

How do 'Pains' differ from 'Jobs' in customer segmentation?

While 'Jobs' are about the tasks or problems customers want to solve, 'Pains' focus on the difficulties or dissatisfaction that customers face in the process of trying to accomplish those jobs.

What are 'Gains' in the context of customer benefits?

'Gains' are the positive outcomes or benefits that customers seek when they are trying to complete a job, which can be expected, required, or even unexpected.

Why is it necessary to prioritize jobs, pains, and gains for customers?

Prioritizing jobs, pains, and gains helps to focus on the most critical aspects of the customer experience, allowing for more effective product or service development and improvement.

How can prioritization of customer jobs, pains, and gains be effectively organized?

Prioritization can be effectively organized by creating a simple table that lists them in order of importance, starting with the most crucial at the top and the least important at the bottom.

What is the significance of understanding the varying importance of jobs, pains, and gains to customers?

Understanding the varying importance helps in tailoring products or services to meet customer needs more effectively, leading to higher satisfaction and potentially greater market success.

How can the concept of jobs, pains, and gains be applied to a business model like Uber?

For a business model like Uber, jobs could be getting a ride, pains might be long wait times or high fares, and gains could be convenience and reliability, which are essential for customer satisfaction.

What is the role of frequency and outcome in determining the importance of a job for a customer?

The frequency with which a job occurs and the significance of its outcome are key factors in determining its importance to a customer, as they directly impact the customer's daily life or business operations.

Outlines

00:00

🚖 Understanding Customer Segmentation

This paragraph introduces the concept of customer segmentation focusing on three key aspects: Jobs, Pains, and Gains. Jobs refer to tasks or problems customers are trying to solve, like getting a ride from Uber. Pains are the annoyances or obstacles that customers face before, during, or after attempting to complete a job. Gains are the desired outcomes or benefits that customers seek. The importance of prioritizing these aspects based on their significance to the customer is emphasized, suggesting the use of a table to organize them from most to least important.

Keywords

💡Customer Segment

Customer Segment refers to a group of customers who share similar needs and characteristics. In the context of the video, it is a critical component of understanding the target audience for a business. The script emphasizes the importance of segmenting customers to better address their specific needs, which is foundational for developing effective business strategies.

💡Jobs

Jobs, in the video, represent the tasks or problems that customers are trying to accomplish in their daily lives. The script uses the example of Uber customers who need a ride to work or from a friend's home, illustrating how understanding these 'jobs' is essential for businesses to meet customer needs effectively.

💡Pains

Pains are the negative experiences or obstacles that customers face when trying to complete a job. The video explains that these can occur before, during, or after the job is attempted and can range from mild inconveniences to severe issues. Understanding customer pains is crucial for businesses to improve their offerings and address customer concerns proactively.

💡Gains

Gains are the positive outcomes or benefits that customers seek when they engage with a product or service. The video script suggests that these can be expected, required, or even unexpected. Gains are important for businesses to focus on, as they can differentiate their offerings and enhance customer satisfaction.

💡Prioritization

Prioritization is the process of ranking jobs, pains, and gains based on their importance to the customer. The video script recommends using a table to prioritize these elements, starting with the most important. This approach helps businesses to focus their resources and efforts on the aspects that matter most to their customers.

💡Customer Perspective

Customer Perspective is the viewpoint from which businesses should understand and address customer needs. The video emphasizes that jobs should be described from the customer's point of view, highlighting the importance of empathy and understanding in business strategy development.

💡Frequent Occurrence

Frequent Occurrence is mentioned in the context of why certain jobs might be deemed more important by customers. The video suggests that jobs that occur frequently are more likely to be prioritized by customers, which is a key consideration for businesses when developing their services.

💡Outcome Importance

Outcome Importance refers to the significance of the results or consequences of completing a job. The video script implies that customers may consider a job important if it leads to a crucial outcome, which is a factor businesses must consider when designing their solutions.

💡Potential Bad Outcomes

Potential Bad Outcomes are the negative consequences that customers might face if a job is not done well or not done at all. The video uses this concept to explain the concept of 'pains,' emphasizing the need for businesses to mitigate these risks to enhance customer satisfaction.

💡Expected vs. Unexpected Gains

Expected vs. Unexpected Gains is a distinction made in the video to illustrate different types of benefits that customers may seek. Expected gains are what customers anticipate, while unexpected gains are pleasant surprises. Businesses can use this understanding to design products and services that not only meet expectations but also delight customers.

💡Essential vs. Nice-to-Have

Essential vs. Nice-to-Have is a concept used in the video to differentiate between the importance of different gains. While some gains are essential for customer satisfaction, others are merely desirable. Businesses must identify which gains are essential to prioritize their development efforts.

Highlights

Customer Segment is divided into three sub-sections: Jobs, Pains, and Gains.

Jobs are tasks or problems customers are trying to solve.

Jobs should be described from the customer's point of view.

Not all jobs are equally important; some are more critical to the customer.

Pains are annoyances or obstacles faced by customers in completing jobs.

Pains can range from moderate to severe in impact on the customer.

Gains are the desired outcomes or benefits for the customer.

Gains can evolve from being nice-to-have to essential for the customer.

Prioritization of jobs, pains, and gains is crucial for understanding customer needs.

Use a simple table to prioritize and organize customer jobs, pains, and gains.

Importance of considering the frequency and outcome of jobs for customer priority.

Examples of customer jobs include getting a ride to work or being picked up late at night.

Customer pains can be related to bad outcomes or risks of not completing a job.

Gains can be expected, required, or come as a pleasant surprise to the customer.

The importance of differentiating between essential and less critical customer gains.

The necessity to prioritize customer pains to address the most significant issues first.

The value of understanding the varying importance of jobs, pains, and gains to the customer.

Using the canvas to better understand and address customer needs through prioritization.

Transcripts

Note that the Customer Segment portion has 3 sub sections

Jobs, Pains and Gains. Let’s go through them one by one.

First, Jobs.

These are simply things that the customers are

trying to get done in their work or in their life.

For example, customers of taxi aggregators like Uber, are trying to solve the problem

of getting a ride to work or getting picked up from a friend’s home at midnight.

So a customer job could be a problem they are trying to solve, a task

they are trying to perform or complete and the needs they are trying to satisfy.

Keep in mind that jobs should be described from the point of view of the customer.

What may not be important to you may be extremely important to the customer.

Also you must remember that not all jobs are equally important for the customer.

Some matter more to the customer than others.

A customer may deem a job important because it occurs frequently

or because it results in an outcome which is important.

Next are the Pains.

Pains are things that annoy a customer before,

during or after trying to get a job done

or it maybe something that prevents a customer from getting a job done.

Pains describe potential bad outcomes, or risks,

related to getting a job done badly or not getting it done at all.

And just as jobs can be important or insignificant,

a customer pain can be moderate or severe.

Next, Let’s look at Customer gains.

Gains are the outcomes or benefits that the customer actually wants.

There are some gains that are expected, or even

required, whereas some come as a pleasant surprise.

You should keep in mind that a gain can go from being something just nice to have,

to something highly essential.

Since there will be many jobs, pains and gains,

all of which varying in importance to the

customer, it is a good idea to prioritise them.

Use a simple table to do so.

Start with the most important or essential on top and the least at the bottom.

So now, let us use an example to understand the canvas better.