Marketing - KeynesYouDigIt/Knowledge GitHub Wiki

  • People respond stronger to embracing upsides than avoiding downsides

Jobs to be done

Know your customers' jobs to be done

  • Companies hire products to solve problems for them. This offers a more fruitful avenue for innovation than trying to find random demographic or psychographic correlations between people.
  • A construction company that was trying to sell new units to downsizers realized they were in the business of "moving people's lives" when they realized how emotionally attached families were to their dining room tables. They added space for it, as well as a moving and storage service
  • The circumstances around a purchase are more important than customer characteristics, product attributes, new technologies, or trends
  • You're often competing against doing nothing at all

Identifying jobs to be done

  • Do you have a job to be done?
  • Where do you see non-consumption?
  • What work-arounds have people invented?
  • What tasks do people want to avoid?
  • What surprising uses have customers invented for existing products?

Putting Products in Services

Putting Products Into Services - HBR

  • Professional services firms struggle to get their gross margins above 40%, while product companies regularly do 60%-90%
    • Growing revenue means adding more people, which adds more cost and risk
  • By embedding products into services, you automate parts that can be automated, which both drives down prices to competitive levels and allows for elements of non-linear growth
  • Customers are still fundamentally buying a service, and little appears different to them
  • Evaluate tasks you perform by the frequency and level of sophistication involved. Automate things that are high-volume and low-skill.
  • Use ML to make them better over time

Monetization levers away from time:

  • Transaction-based pricing: Used when automation allows a higher volume
  • Outcome-based pricing: Used when analytics provide better outcomes

Monetization goes from inputs (time), to throughputs (transactions), to outputs (outcomes)

Customer Loyalty is Overrated

Original article

Cumulative Advantage: Each time you choose a product, its advantages over unchosen alternatives accumulates

  • Brains prefer automaticity to choice
  • Build purchasing habits in your users
  • Design for habit
  • Lean on your branding
  • When new tech makes new habits possible, they change quickly

Branding

  • Brains don't ask "what is this", they ask "what is this like?"
  • You want a brand to get to someone in "one note"
  • On a shelf, people identify (in order) by:
    1. Placement
    2. Color
    3. Shape
    4. Spatial orientation

Are You Solving The Right Problems?

Original Article

  • "The slow elevator problem": People complained about slow elevators, and rather than make the elevators faster, they installed mirrors so people had something to do while waiting for the elevator. An easier solution was found by reframing the problem.

How to reframe:

  1. Establish legitimacy by sharing this article, and telling the elevator problem story. It's hard to do this if you're the only one who understands the method.
  2. Bring in outsiders- people who know your world, but aren't in. They'll speak freely. Get input from them, not solutions.
  3. Get definitions of the problem up front in writing. It will sensitize everyone to the different angles on the problem.
  4. Ask what's missing in the problem statement- what are people leaving out?
  5. Consider multiple categories
    • Incentive problem?
    • Expectations problem?
    • Attitude problem?
    • Feelings?
  6. Analyze positive exceptions- When does the problem not occur?
  7. Question the objective- Do people actually want different things?