Tony Ulwick is the pioneer of jobs-to-be-done idea, the inventor of the Consequence-Pushed Innovation® (ODI) course of, and the founding father of the technique and innovation consulting agency Strategyn.
He’s the writer of Jobs to be Executed: Concept to Apply (IDEA BITE PRESS, October 2016), “What Clients Need” (McGraw-Hill) and quite a few articles in Harvard Enterprise Evaluation and Sloan Administration Evaluation.
“For those who’re not pondering segments, you’re not pondering.” – Theodore Levitt
Right here’s a short historical past of market segmentation:
Nineteen Fifties: Segmentation began with fundamental demographics—age, location, gender—as a result of that was the best information to gather and analyze.
Nineteen Sixties: Entrepreneurs started including psychographics, gathering insights into buyer attitudes and traits to create extra particular profiles.
Seventies: The rise of huge transaction databases enabled real-time point-of-purchase information assortment, resulting in segments primarily based on buy conduct.
Eighties: Wants-based segmentation emerged, pushed by highly effective computer systems and superior clustering methods. This allowed researchers to group clients primarily based on desired product options and advantages.
Whereas needs-based segmentation was a step ahead, it typically missed the mark as a result of clients aren’t product engineers.
They wrestle to articulate what particular merchandise or options they want.
However right here’s the factor:
Clients excel at describing the outcomes they wish to obtain when utilizing a product to get a “job” finished.
When discussing their desired outcomes, they’ll determine 100 to 150 totally different metrics to explain success at a granular degree.
Immediately’s best market segmentation?
It focuses on understanding how clients price the significance and satisfaction of every end result.
This perception permits entrepreneurs to craft focused messages and develop merchandise that resonate deeply with every section.
Right here’s 3 examples of Consequence-Primarily based Segmentation in motion:
1. J.R. Simplot Firm recognized a section of restauranteurs who wanted a French fry that stays interesting longer in holding, resulting in a tailor-made product resolution.
2. Dentsply discovered a section of dentists who believed that the standard of a tooth restoration trusted constantly reaching strong bonds, permitting them to tailor their merchandise to this want.
3. Bosch found a section of drill–driver customers who primarily needed a instrument optimized for driving, hardly ever utilizing it as a drill. This perception helped Bosch create focused and efficient advertising methods.
Consequence-based segmentation represents a big leap ahead.
It focuses on actual alternatives…
…and measurable actions which can be underserved by the competitors.
Consequence-based segments present a transparent path to innovation and market success.
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