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Did you know that 75% of the capital spent on new product development results in commercial product failures?

And it all comes down to segmentation. For decades, marketers have focused on identifying groups of customers by similar traits in order to clearly define their needs. Product type, price point, demographics, psychographics, technographics, and whatevergraphics have all been the basis on which companies speak to, and learn from, their customers.

But these segments are defined by the attributes of products and customers.

Attribute-based segmentation can, at best, reveal correlations between the defined attributes and the outcomes customers seek from them. This approach often fails when it comes to innovation because segmentation based on static attributes doesn’t explain why people make purchasing decisions.

In order to determine the basis for our innovation and product development efforts, we need to come up with a clear picture that explains the causality of customer needs and outcomes.

Attributes → Circumstances

Customers don’t buy products just because they fit into a particular category. Customers buy products and services to solve specific problems in their lives.
People buy products that enable them to get a job done.

When a need arises, people seek out a product or service that will help them accomplish their goal as smoothly and effectively (and preferably as cheaply) as possible. The true key to innovation isn’t focusing on customer characteristics—it’s understanding the circumstances that lead customers to “hire” a product for a particular task.

This shift from attribute-based segmentation to circumstance-based categorization is what you’ve probably heard referred to as the Jobs to be Done framework.

By analyzing the functional, emotional, and social reasons behind customer choices using the jobs to be done (JTBD) framework, businesses can develop products that fit seamlessly into real-world needs. This circumstance-based understanding of customer needs is the key to more predictable innovation success.

Why JTBD is Crucial for Innovation

Moves Beyond Product Features to True Customer Needs

Many companies fall into the trap of focusing on incremental feature enhancements rather than understanding what customers actually need. The JTBD framework forces organizations to shift their perspective from product-centric to customer-centric innovation.

For example, a company developing a new fitness app might initially focus on expected features like calorie tracking and workout suggestions. However, by using JTBD, they might discover that users actually "hire" fitness apps to build a sense of accountability or make workouts more enjoyable. This insight could lead to innovation beyond mere tracking, such as gamification or social workout challenges.

Helps Identify Non-Obvious Market Opportunities

JTBD reveals unmet needs and allows businesses to create solutions that customers didn’t even realize they wanted. By analyzing what "jobs" current products are being hired for, businesses can spot opportunities for disruption.

Consider the emergence of meal kit delivery services. People weren’t just looking for fresh ingredients; they were hiring a solution to the job of making home-cooked meals without the hassle of grocery shopping or meal planning. Understanding this job led to the creation of an entirely new market segment (albeit one that has struggled to maintain market share.)

Reduces the Risk of Failed Innovations

Traditional market research often misinterprets customer desires, leading to costly innovation failures. JTBD reduces this risk by uncovering the root cause of purchasing decisions rather than relying on assumptions or surface-level surveys.

For example, many consumer electronics companies have focused on making devices with increasingly complex features. However, companies that have applied the JTBD framework have recognized that customers often prioritize ease of use, reliability, and integration into their existing workflows over raw technical specifications. This shift in understanding has led to simplified, user-friendly designs (like the Camp Snap camera) that drive customer satisfaction and long-term adoption.

Enables Competitive Differentiation

Understanding the real "job" a product fulfills allows businesses to stand out from competitors. Instead of competing on price or minor feature differences, companies can create a unique value proposition by solving problems more effectively.

Take Peloton’s connected fitness equipment. Instead of simply improving traditional exercise bikes, Peloton recognized that many customers prefer the camaraderie and competitive nature of group classes, but also struggle with the scheduling requirements and expense of attending. By integrating live and on-demand interactive classes, leaderboards, and a strong community aspect, Peloton transformed stationary cycling from a solitary activity into a highly engaging, immersive experience that built brand loyalty and a new category of fitness.

Aligns Cross-Functional Teams Around a Common Goal

One of the biggest challenges in corporate innovation is alignment across departments. Product teams, marketing, and leadership often operate with different priorities. JTBD serves as a unifying framework that aligns everyone around the fundamental question: What job is the customer hiring our product to do?

This shared understanding ensures that every innovation effort—from R&D to go-to-market strategy—is purpose-driven rather than feature-driven.

How to Implement JTBD in Your Organization

Talk to Your Customers

Engage with customers to understand why they use your product or service. Ask open-ended questions such as:

• What problem were you trying to solve when you bought this product?

• What alternatives did you consider?

• What challenges did you face before finding this solution?

Identify Core Jobs and Pain Points

Categorize the "jobs" customers are hiring your product for. Look for common patterns and unmet needs. Your customers will help you find the opportunities they’re hungry for you to solve.

Align Product Development with Jobs

Use JTBD insights to inform product design, marketing messaging, and innovation strategy. Ensure that new features or products directly address the identified jobs rather than simply adding enhancements for the sake of differentiation.

Remember, however, that it requires diligence to avoid the “faster horse” mentality of product development. It remains up to you, the innovator, to interpret the input from customers into the right product opportunity. In simple terms, it’s the customer’s job to tell you they want a faster horse. It’s your job to realize that “a faster horse” might not have four legs and run on feed.

Test and Iterate

Develop prototypes and test them with real users. Make iterative improvements based on how well they fulfill the intended job.

Your marketing, brand, and product innovation efforts can and should coalesce around the customer. And by bringing customers into the fold early and asking for their input, not only will you develop a better, more job-focused product, but you’ll also further ingratiate your customers to your brand. Create a “product council” of your top customers. Enable them to feel involved in the process and they will reward you at every step of the process—especially when you’re ready to go to market.

Conclusion

The Jobs to Be Done framework can be a game-changer for corporate innovation. It forces companies to look beyond surface-level customer attributes and understand the deeper motivations behind purchasing decisions. By leveraging JTBD, organizations can reduce innovation risks, uncover new market opportunities, and develop solutions that customers truly value.

Rather than asking, "How can we improve our product?" start asking, "What job is our customer hiring this product to do?" 

The answers may unlock your next big innovation.