By Burke Alder
Jobs to Be Done Theory
SaaS companies, at their core, are created to deliver products to consumers to meet specific needs or address specific pain points. When a customer buys a SaaS product offering, they are essentially saying, “We believe this product can help us meet this need or address this paint point.” Clay Christensen, author of Competing Against Luck, presents this a little differently, calling it the “Jobs to be Done Theory.”
Essentially, every customer is ‘hiring’ a product to do a job (or solve a problem). If the job goes well then it will result in a renewal. If it doesn’t, the organization is let go, or fired. Every B2B interaction (and B2C, as Christensen notes in his book) can be aligned to this theory, and SaaS Customer Success is no different. An organization’s focus on providing a singular ‘job’ can be threatened, however, as it grows and changes offerings in order to meet the demands of multiple customers.
New Customers vs. Current Customers
A SaaS company’s current customers rely on their platform to deliver value – to do its job. But what happens when an organization decides to try something else in order to get even more customers? Without the customer-focused strategy behind it, decisions like this can actually hurt an organization over time.
New Customers – the Risk of Only a New Customer Focus
Every company wants to thrive and innovate, and in the SaaS world that is the only way to continue to grow and survive. But the minute organizations begin making decisions based on new logos rather than current customers, a disconnect is created that can be hard to come back from. Make sure that before you release a new product or a new feature, that your current customers have a need for it too.
Current Customers – Why they Hired You, the Job to be Done
The best place to start is by looking back at your earliest customers. What problems were you solving for them? What ‘job’ did they ‘hire’ you to do? It’s pretty common for a company to shift focus towards new business as it starts to grow. It’s important to remain grounded and aware of how these initial customers are handling the change of focus, whether or not they are requesting changes of their own, and if they are beginning to feel as though the product is not delivering value to them any longer.
Every organization has churn. There are inevitable factors that make this inescapable. When an organization’s focus is exclusively on new business, however, this churn is magnified and can increase rapidly. If an organization is dedicated to solving customer problems and meeting their needs, this churn can decrease from a flood to a trickle.
How Do You Know If You’re Executing a Customer-Centric Strategy?
Most companies would tend to agree that they are customer-focused, but to be sure they should ask themselves these questions:
1. Are you improving churn month over month or quarter over quarter?
2. Is your referral/reference list of customers growing?
3. Do you Go to the full article.
Source:: Business 2 Community