Elements of Value
Defining outcome statements that go beyond functional needs
Overview
I have been working through various Jobs-to-be-Done analyses over the past year. One of the critical steps in the process is to define benefit statements. These are then evaluated by customers to determine which ones will have the most impact if we can solve them.
Outcome statement =
direction of improvement + performance metric + object of control + contextual clarifier — Tony Ulwick “Jobs-To-Be-Done”
The first place to capture these statements comes from interviews and workshops to gather insight. The second step that I have found helpful is to leverage the elements of value frameworks to ensure that we have a comprehensive set of “performance metrics” to build out the benefit statements.
Another important reason for using these frameworks is to ensure that you are not just evaluating functional needs, but are also taking into account emotional and social needs that customers are looking to meet.
B2C Elements of Value
While most products are not going to be “life changing” it is useful to think about how your product can have a great influence beyond solving a functional need. Some great products don’t do much more than solve a functional need. I would put some of my mountaineering gear in this category. Many of the items I have for mountaineering are great quality and the price was right. Take my ice axe. It is lightweight, durable and was good price. It has been beat up on various trips and has a ring of duct tape around it in case I need some to make a minor repair.
As you move up the pyramid of value you find products that you love. I wrote about some of these in a previous post on Killer products. Let’s look at Fitbit as an example. This product hits on various levels from being functional in its ability to provide time and track steps, to being a statement of fashion and fitness and finally to being a motivator to be fit. Products hit on various elements and that mix is what creates differentiation and loyalty.
B2B Elements of Value
Earlier this year the B2B version of the elements of value was released. For those that have worked in both B2B and B2C you know that while some elements are similar, there are unique needs for B2B products.
While the functional layer is relatively similar, the “Ease of Doing Business” section is very different for B2B, especially on the right side as it relates to strategic and relationship elements. For anyone that has been involved in SaaS or consulting sales you know that a large portion of the product comes down to building a relationship and establishing trust with the other person. I would personally prefer to work with some I like that is somewhat less qualified than someone that is awesome, but a jerk.
Given this model below is relatively new I haven’t used it as much, but it has been helpful as we have started to enter phase 2 of some work with our B2B side of the business.
Putting the Values into Action
With the above values you can also evaluate which ones are most valuable to your customers and how these values may impact customer behavior to switch. I love the four forces model below that Customer Centric Solutions uses. It is a simple way to layout the various reasons and values that drive you to change behavior and what prevents you from making the switch. Understanding these values is critical for your product design and go-to-market strategy. The way I use the framework below is to look at the critical values for each of the four forces and map out what we can do for each.
Here are a few examples thinking about switching to using Uber or Lyft vs other means of transport.
- Push — One of the reasons that pushed me to use Uber and Lyft was in consulting when I’d start a new project in a new city. There was a natural switch that occurred with working in a new city and I needed to find a new transport solution.
- Pull — Using Uber or Lyft is super convenient and easy to use. No need to worry about the awkward payment exchange at the end.
- Anxiety — With services businesses, like Porch, Uber, Airbnb, this is often times about quality. One reason why you might not use an Uber is that you are concerned the drivers are not ‘good drivers’. Uber has built in reviews to help customers feel comfortable. Another anxiety I had was around waiting too long, especially if I had to be somewhere at a specific time.
- Allegiance — In consulting I would travel every week to the airport at the same time. It was a routine and I had a driver that I would use each week and knew he’d be there. He’d text the day before to confirm. To me this level of service was something at the time that Uber or Lyft could not match.
In the end, Uber/Lyft have proven to have more positive forces than negative for me and are part of my transport solutions. Now that I travel less frequently it is nice to know that wherever I go I can pull out my app and get a ride without any hassle.
In Closing
The elements of value frameworks are super useful as you start a jobs-to-be-done analysis to help you think broadly about what matters most to your customers. Focus on the “why” and motivating factors for your customers and you’ll see the results. The best products are all built to achieve many values for a customer to help them achieve an outcome.
I’ll leave you with one quote from Bob Moesta — one of the pioneers of jobs-to-be-done.
“…people don’t actually buy products, they hire them to do a job.”
References
Below were the inspirations for this week’s post.
