JTBD: day three - solution value and how to create it
Solution value can be defined as a difference between perceived benefits provided by a solution and perceived costs associated with a solution. In addition to that there can be a perceived cost of switching to the solution. We use “perceived” here since there is usually a gap between reality and perception and value is in the eye of the beholder.
- $value(solution) = benefits(solution) - costs(solution)$
- value is relative. It is hard to assign a value number to a solution so people usually compare one vs another.
- main paths to add value:
- add benefits
- reduce costs
- both
- sometimes it is cost increase but providing much more benefits
- aha-moment or value activation - aha-moment is the moment when the user realizes the value of a solution. For example, for a new expensive car the status value of a car can be activated at the point when you gave a ride to a friend and they said “wow, that was great.” For a report, it can be a moment when you receive positive feedback for the quality of the report and not the moment when you generated a report.
Top mechanisms to bring more value
- do an important job nobody else does
- fix problems in the main job
- provide base quality for your solution - people expect it as bare minimum
- eliminate low-level jobs
- do more jobs within a user using one solution so the user uses your solution more frequently and value it more as a tool
- move to a different segment with a same solution
- do the immediate next job after current job - Figma is a good example, current job “create a report”, and next job “share report”
- reduce the cost of a job
- add more benefits to a job
- fulfill basic needs: status, safety, social contact etc
- communicate that a solution fulfills one of the basic needs
- wake up a sleeping job - higher level jobs which can be completed more efficiently but using a different solution
- correct expectations - the user may have unreasonable expectations correcting them in advance will reduce disappointment when unreasonable expectations are not met
An algorithm for solving business problems with a product
- clarify and challenge the goal
- find mechanisms which may help to achieve the goal
- find raw material to pick right mechanisms: analytics + JTBD interviews
- apply mechanisms: Airtable - How to pick value mechanisms
- rank mechanisms by RICE (Reach, Impact, Confidence, Effort)
On RICE
RICE (Reach, Impact, Confidence, Effort) is a mechanisms for ranking different solutions. Confidence can be tricky to estimate you can try to use Idea Prioritization With ICE and The Confidence Meter for estimations.