Friday, October 14, 2016

· BOOK SPECIAL BOOK EXCERPT........Competing Against Luck

            Competing Against Luck
·          
How to Hear What Your Customers Don’t Say
from: Competing Against Luck: The Story of Innovation and Customer Choice

Most companies want to stay closely connected to their customers to make sure they’re creating the products and services those customers want. Rarely, though, can customers articulate their requirements accurately or completely—their motivations are more complex and their pathways to purchase more elaborate than they can describe. But you can get to the bottom of it. What they hire—and equally importantly, what they fire—tells a story. That story is about the functional, emotional, and social dimensions of their desire for progress—and what prevents them from getting there. The challenge is in becoming part sleuth and part documentary filmmaker—piecing together clues and observations—to reveal what “jobs” customers are trying to get done. In our book, “Competing Against Luck,” we define a “Job to Be Done” as the progress a consumer is trying to make in particular circumstances.
Jobs to Be Done have always existed. Innovations have just gotten better and better in the way we can respond to them. So no matter how new or revolutionary your product idea may be, the circumstances of struggle already exist. Consequently, in order to hire your new solution, by definition customers must fire some current compensating behavior or suboptimal solution—including firing the solution of doing nothing at all. Wristwatches were fired in droves as soon as people began carrying mobile phones that not only told them the time but could sync with calendars and provide alarms and reminders. I fired my weekly Sports Illustrated when I could suddenly flip on ESPN. Companies don’t think about this enough. What has to get fired for my product to get hired? They think about making their product more and more appealing, but not what it will be replacing.
A customer’s decision-making process about what to fire and hire has begun long before they enter a store—and it’s complicated. There are always two opposing forces battling for dominance in that moment of choice and they both play a significant role.
The forces compelling change to a new solution: First of all, the push of the situation—the frustration or problem that a customer is trying to solve—has to be substantial enough to cause them to want to take action. A problem that is simply nagging or annoying might not be enough to trigger someone to do something differently. Secondly, the pull of an enticing new product or service to solve that problem has to be pretty strong, too. The new solution to the Job to Be Done has to help customers make progress that will make their lives better. This is where companies tend to focus their efforts, asking about features and benefits, and they think, reasonably, that this is the roadmap for innovation. How do we make our product incredibly attractive to hire?
The forces opposing change: There are two unseen, yet incredibly powerful, forces at play at the same time that many companies ignore completely: the forces holding a customer back. First, habits of the present weigh heavily on consumers. “I’m used to doing it this way.” Or living with the problem. “I don’t love it, but I’m at least comfortable with how I deal with it now.” And potentially even more powerful than the habits of the present is, second, the anxiety of choosing something new. “What if it’s not better?”
Consumers are often stuck in the habits of the present—the thought of switching to a new solution is almost too overwhelming. Sticking with the devil they know, even if imperfect, is bearable. I refused to upgrade my mobile phone for years, in spite of all the whiz-bang things my assistant assured me the new phone could do, because I was comfortable with the one I had. This is largely because, as Nobel Prize winner Daniel Kahneman has shown, people’s tendency to want to avoid loss is twice as powerful psychologically as the allure of gains.
The anxieties that come into play are powerful: anxiety about the cost, anxiety of learning something new, and anxiety of the unknown can be overwhelming. Why do many consumers hang onto their old mobile phones, even when they might get some trade-in value toward a new one? “What if the new one fails at some point?” “What if I find myself in some kind of unanticipated situation where I need a backup phone?” “What if . . . ?” Health clubs have only recently come around to the idea that locking customers into annual contracts creates so much anxiety that it prevents them from joining in the first place. Innovators all too often focus exclusively on the forces pushing for change—making sure that the new solution for resolving a customer’s struggle is sufficiently alluring to cause them to switch. But they completely ignore the powerful forces blocking the customer’s decision to make that change.
Excerpt from Competing Against Luck by Clayton M. Christensen, Taddy Hall, Karen Dillon, and David S. Duncan. Copyright © 2016 by Clayton M. Christensen, Taddy Hall, Karen Dillon, and David S. Duncan. Reprinted courtesy of HarperBusiness, an imprint of HarperCollins Publishers.


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