Understanding the Job

Summary

The video script narrates a story of innovation in marketing, highlighting the importance of understanding the underlying 'job' customers hire products to do. It uses the example of a fast-food restaurant trying to increase milkshake sales. Despite traditional product improvement efforts, sales remained stagnant. A shift in perspective led to observing when and how customers used milkshakes, revealing that they were used to make a boring morning commute more interesting and to stave off morning hunger. This insight, compared to other breakfast options like bananas or donuts, led to understanding how to improve the milkshake, making it a better fit for the customer's needs, thus driving sales and profits.

Takeaways

• 💡 Innovation is key in marketing and understanding the underlying 'job' customers hire products for is crucial.
• 📚 The traditional approach of improving products based on customer feedback may not always lead to increased sales or profits.
• 🕵️‍♂️ Observing customer behavior and understanding their needs in real-life situations can reveal insights that direct questioning might miss.
• 🚗 The case study of the milkshake sales revealed that the product was used to fill a specific 'job' during a morning commute, not just as a food item.
• 🥪 People used the milkshake as a means to make their long, boring drive to work more interesting and to stave off hunger until later in the morning.
• 🍌 Other potential solutions like bananas, donuts, bagels, and Snickers bars were considered but found to be less effective for the 'job' at hand.
• 🥤 The milkshake's viscosity and the fact that it could be consumed over a longer period of time made it the ideal product for the 'job'.
• 🏆 The success of a product isn't just about its features but about how well it performs the 'job' customers need it to do.
• 💭 When understanding the 'job', improving the product becomes more obvious as you can focus on what truly matters to the customer.
• 🎯 Marketers should aim to understand not just what customers say they want, but what they actually do and why they do it.

Q & A

Who is the speaker in the transcript and what is his profession?

The speaker in the transcript is Clay Christensen, who is a professor at a Business School.

What is the main topic of discussion in the transcript?

The main topic of discussion is innovation and understanding customer needs, specifically focusing on how people 'hire' products to do certain jobs in their lives.

What was the initial approach of the fast-food restaurant to increase milkshake sales?

The initial approach was to ask customers for feedback on how to improve the milkshake based on various attributes like taste, texture, and price.

What was the outcome of the initial approach to improve milkshake sales?

The initial approach did not have any impact on sales or profits, despite making improvements based on customer feedback.

What was the different question the colleague asked that led to a breakthrough?

The colleague asked what job arises in people's lives that causes them to buy a milkshake from the restaurant.

What did the observation of customers buying milkshakes reveal?

The observation revealed that nearly half of the milkshakes were sold before 8 o'clock in the morning to customers who were alone, bought only a milkshake, and drove off with it.

How did the researchers understand the 'job' that customers were trying to do by buying a milkshake?

They confronted the customers outside the restaurant and asked about the last time they had been in a similar situation and what they 'hired' to do the job instead of a milkshake.

What was the 'job' that the customers were trying to do in the morning?

The 'job' was to have something to do during their long and boring drive to work that would keep the commute interesting and also satisfy their hunger by 10 o'clock in the morning.

Why did the customers prefer milkshakes over other options like bananas, donuts, or bagels?

Milkshakes were preferred because they were viscous and took longer to consume, kept the driver's hands relatively clean, and stayed fresh until they were needed to satisfy their hunger.

What is the key takeaway from the milkshake case study?

The key takeaway is that understanding the actual 'job' customers are trying to accomplish with a product can lead to insights on how to improve the product and create a better customer experience.