Why Your Business Needs a “Customer Analysis” to Beat the Competition
Most leaders agree that obtaining competitive information is essential for developing an effective strategy. Gaining competitive intelligence is often viewed as similar to gaining military intelligence. The big difference, however, is that in capitalism we are fighting to earn the business of customers. In war, there are no customers and we are fighting to destroy the enemy. Perhaps this explains why competitive analyses at many companies are heavy on information about competitors and light on information about customer needs. Ironically, companies that focus primarily on beating the competition often find themselves outflanked because, in reality, the customer is in control of the game, not the competition.
Companies don’t earn their customers’ business by beating the competition; they beat the competition by earning the customers’ business, and that is done by delivering unique value.
Many companies think they need a competitive analysis to guide the development of their growth strategy but, in reality, they need a customer analysis that reveals:
- The jobs customers are trying to get done
- The criteria customers use to measure success when executing those jobs
- The jobs and criteria customers consider important to get done and yet are currently unsatisfied by the market (rivals)
Jobs and criteria that customers consider important to get done, and yet remain unsatisfied by the market, are opportunities for innovation and growth. The more important and less satisfied a need (job or criterion) is, the greater the opportunity for innovation and growth it presents. This approach not only delivers a more reliable and actionable competitive analysis but also turns innovation and growth into a repeatable business process that consistently delivers results.
Doing this exercise at the frontend of innovation brings clarity that dramatically enhances other downstream processes like design thinking and lean startup. As with any process or system, the quality of the inputs determines the quality of the outputs; garbage in, garbage out. Why not ensure your teams is focused on important unsatisfied needs? This is how leading companies are using the jobs-to-be-done approach to ensure they make and sell offerings that customers want.
Contact me if you want to see if this breakthrough strategy formulation approach (JTBD) can help you achieve your growth goals by creating unique value for customers.
Reveal needs. Create value. Drive growth.
(This article was published in The Business Journals, March 4, 2019).
