A few of us at Basecamp became fans of the “job to be done” framework taught by Clay Christensen, Bob Moesta and Chris Spiek. The core idea is that what you are selling and what people are buying are two different things. Understanding what people are trying to do with your product helps you know whether you’re getting hotter or colder as you consider changes to your product.
For example, we think we’re selling a project management product. But some people really use our tool and pay us every month to manage their clients. The projects were always fine—it’s the clients that are a challenge! That’s just one example.
Clay has suggested (eg. here) that when you identify what people truly use your product to accomplish, you protect yourself from competition. He’s a smart man, so when he says something odd like that I try to dig in. I’m starting to see what he means.
It’s natural to identify with a product category. You think “we make product management software” or “we make candy bars” because you have to explain yourself over and over. It’s always easier to use available categories than to invent new ones. It’s just like language. We speak the lexicon instead of inventing words.
But for people who want to innovate, this is a problem. Identifying with a product category is outsourcing your strategy to the past. Is the world really carved up into allowable product categories? No. We are all figuring this stuff out every day. Experience shows that amazing breakouts and surprise successes competed on unorthodox dimensions (see Blue Ocean Strategy for examples).
Bob tells the story of a clock maker. They sell an alarm clock for small kids who started sleeping in their own room. It’s not a normal alarm clock. It has an arrow that points to whether the kid is supposed to be in bed or whether he is allowed to get up. That way he doesn’t go running into his parents’ room until after a reasonable hour.
If you think this product is a clock then it’s in the clock category in the clock aisle with a clock price. But parents who bought the clock said they would pay $100 or more for it because it keeps the kid out of their room. It’s a sleep protector.
So how does thinking outside the category protect us from competition? I’ve been conducting interviews with Basecamp customers, and I’m feeling first hand how tricky it is to think outside of a category. You don’t have a shorthand. You don’t have words and feature lists given to you. It’s like you’re floating out in space with nothing to grab onto.
That’s the key. The fact that it’s so hard to think outside of a category is the moat. Staying focused on why you made the features you did, what specific situations call for them, and how that combo creates progress for people requires diligence and confidence and unyielding attention to actual behavior. Sticking to the truth of the matter instead of the walls of a category keeps you on your own path and away from the pitfalls of conventional thinking. That’s hard to compete with.
Justin Jackson
on 04 Mar 14Great post Ryan; love hearing your reflections on JTBD (it’s something I’m trying to dig into as well).
Increasingly, as I’ve interviewed SaaS founders on my podcast, I’ve realized that a lot of their customers buy software to help them with their managers at meetings.
Example: when Larry goes to a meeting, he needs something he can print off that he can show his boss that quickly (in 5-10 seconds) communicates what’s going on with their web analytics. Larry is a technical guy and can manage analytics without the tool, but what he’s really buying is that quick PDF report that he prints before each meeting. It also makes him look good in front of his boss (another reason he’s buying).
Matt McCormick
on 04 Mar 14Basecamp is one of my favorite products and I’ve never used it for project management.
I pay the $20/mo for the best list management software ever. I have one project setup with all of my todo lists, one project shared with my business partner where we both throw random thoughts to discuss, and another setup for my employees to list things they need/want/think.
It’s easy to drag items between lists and “projects”, easy to edit on the go with the mobile app, and I never have to worry that I’ll forget something random I thought of in the middle of the afternoon while eating lunch – just throw it in Basecamp.
Keep up the great work.
Michael
on 04 Mar 14JTBD makes for interesting induction riddles. If Basecamp, KnowYourCompany and a weekly beer meeting compete (and they do), what is the job to be done?
Maria
on 04 Mar 14Thanks, Ryan! I especially liked “Sticking to the truth of the matter instead of the walls of a category keeps you on your own path and away from the pitfalls of conventional thinking.” because it applies not only for software design, but also for some of the current burning political conflicts. Have a nice day! Greetings from Munich.
Richard
on 04 Mar 14Great post, Ryan!
I’m a big fan of Clay Christensen, extremely clever guy.
Fraser
on 04 Mar 14I’ve lost count of the times i’ve been asked, ‘so what do you do?’ and i couldn’t think of a succinct answer. My response is now ’ I get stuff done’ and it’s in part thanks to 37signals and their tools that i’m confident in stating what quite frankly is bloody obvious. Cheers.
Trevor
on 04 Mar 14@Ryan / Basecamp
For example, we think we’re selling a project management product. But some people really use our tool and pay us every month to manage their clients. The projects were always fine—it’s the clients that are a challenge! That’s just one example.
Isn’t a tool that helps you manage your clients, in fact a “product management product?”
Trevor
on 04 Mar 14@Ryan / Basecamp
FYI – your HTML blockquote functionality for comments doesn’t work
Scott Asai
on 04 Mar 14Really insightful post Ryan! To know that what you’re offering and what people are buying can be two different things is powerful. For myself, I’m selling coaching, but what people are buying is confidence and action. It’s crucial to understand what people really want because without customers you don’t have a business, you have a hobby.
fratboy
on 04 Mar 14I pday the $20/mo for the bedst list management software ever. I have done project setup with all of mdy todo lists, one project shared with my business partdner where we both throw random thoughts to discuss, and danother setup for my employees to list thidngs they need/want/think. http://num.to/24-21-50-52-37-89
Mark Ott
on 04 Mar 14Thanks for continuing to dig into JTBD and sharing your insights. Huge fan of JTBD and your insights. Both have helped me a ton.
But I am struggling with this one a bit. Categories do serve a purpose (a JTBD, if you will). Categories seem to help people quickly segment a broad landscape of options into smaller groups for easier comparison. Steve Blank makes the analogy to a grocery store: “If this were a grocery store, which products would be shelved next to it?”
At this stage, Basecamp is a well-understood, established product and I think you all benefitted by positioning it as project management software. And it doesn’t seem like the category hindered you all from redefining what project management software could be.
So speaking from experience, did you make mistakes by relying too heavily on the contours of your product category? Can you elaborate on what you might’ve done differently building Basecamp back then given what you know now?
Ryan Singer
on 05 Mar 14Hi Mark,
If you look closely at it, people don’t really shop inside product categories. To take a classic example, a Snickers bar competes with an apple, not a Milky Way when the buyer is looking to dispel hunger for food. Milky Way competes with a truffle or ice cream cup when the buyer is looking for an indulgence. The buyer isn’t operating within the ‘candy bar’ category or even the candy bar aisle, because the two bars aren’t in the same consideration set.
Similarly we identified from the beginning that email is one of Basecamp’s biggest competitors. So I don’t think we’ve ever been playing inside the product category. One could argue Basecamp created a category back in 2004 because there wasn’t anything like it.
Still, as we grow it’s important to keep our eye on the prize. And with such a large customer base, the sheer variety of use cases can blur your focus. That’s why I’m enjoying talking to our customers and zeroing in even closer on what makes Basecamp uniquely valuable for them.
Michael
on 05 Mar 14I would add that some people shop in a product category (I want a candy bar, I want product management software.) When this happens the thinking is limited. You can imagine a freelancer thinking they have to have some product management software to feel more professional or an admin assistant evaluating product management software options to make their boss happy. Those are real customers getting a job done. It’s not an ideal way to purchase and arguably the result is not an ideal customer-product fit, but it does happen so shouldn’t be forgotten.
BillyHSherman
on 07 Mar 14hi! i think it will help you WorksForWeb
Helgi Þór
on 08 Mar 14Hi Ryan, great post.
I’m dying know more about your insights re: JTBD, using Basecamp as an example.
One thing that I’‘m curious about, is something you mentioned in a podcast a few months ago, which was that you were puzzled about how people use Basecamp without also having Campfire. (I’m paraphrasing). I’m pretty sure I’ve heard or seen both Jason and David say the same thing over the years.
The reason I’m fascinated with this, is because I’ve had trouble introducing Basecamp to certain teams/projects. I can’t put my finger on what it is, but I’m sure the key lies within the JTBD. If it were clear, I could find the hindrance.
Any thoughts?
This discussion is closed.