Job Beneficiary is a critical concept in the Jobs to be Done (JTBD) framework that identifies the individual or entity who directly benefits from getting a job done. Understanding job beneficiaries is essential for portfolio companies to correctly target their product development, marketing, and sales efforts.
A job beneficiary is the person who directly benefits from the successful execution of a Job to be Done. They are the reason a market exists: because someone needs to achieve a goal or solve a problem (i.e., get a job done).
In the JTBD framework, identifying the correct job beneficiary is a crucial first step in market analysis and product strategy for several reasons:
A critical distinction in the JTBD framework is the difference between job beneficiaries and job executors:
In some cases, especially in consumer markets, the job beneficiary and job executor are the same person. For example, a consumer both benefits from getting to a destination on time (the job) and executes this job by driving themselves.
In more complex markets, particularly business-to-business (B2B) and medical markets, job beneficiaries and job executors are often different people. For example:
Understanding the distinction between job beneficiaries and job executors has profound strategic implications for portfolio companies:
Markets naturally evolve in a direction that enables job beneficiaries to get more of their job done without job executors. Companies that target job executors rather than beneficiaries face a significant risk that new solutions will emerge that allow beneficiaries to accomplish more of the job on their own.
For example:
Companies that fail to recognize this evolution often find their products displaced by solutions that empower job beneficiaries directly.
When portfolio companies understand who their job beneficiaries are, they can design products that directly address these customers' needs rather than focusing on intermediaries. This results in more valuable products that are more likely to succeed in the market.
For example, Nest transformed the thermostat market by targeting homeowners (job beneficiaries) rather than HVAC contractors (job executors). Their product emphasized ease of use, remote control, and learning features that benefited homeowners directly, rather than focusing on features that would appeal to contractors.
Understanding job beneficiaries also shapes how companies market and sell their products. Messaging can be crafted to address the beneficiaries' struggles directly, even if the product is purchased through or used by job executors.
In B2B markets, this might mean developing value propositions and marketing materials that demonstrate how a product helps the ultimate beneficiary, even if the sales process involves working with different stakeholders.
The relationship between job beneficiaries and job executors varies significantly across different types of markets:
In consumer markets, the job beneficiary, job executor, and purchase decision maker are frequently the same person. Consumers benefit from getting jobs done (like getting to destinations on time, creating moods with music, or sharing memories), execute these jobs themselves, and make their own purchase decisions.
This alignment simplifies market analysis and product strategy but doesn't eliminate the need to clearly identify the job beneficiary and their needs.
In business markets, job beneficiaries and job executors are often different people within an organization. Additionally, purchase decision makers (often financial or procurement executives) add a third role to consider.
For example:
Understanding these distinct roles helps portfolio companies develop products that satisfy beneficiaries' needs while addressing the concerns of purchase decision makers.
Medical markets represent the most complex relationship between job beneficiaries, executors, and purchase decision makers. In these markets:
Portfolio companies in medical markets must navigate this complexity, developing products that ultimately benefit patients while meeting the needs of medical professionals and satisfying the requirements of those who make purchasing decisions.
Accurately identifying job beneficiaries requires rigorous research and analysis. The thrv methodology includes several approaches to ensure that portfolio companies correctly identify their job beneficiaries:
Beyond simply identifying job beneficiaries at a broad level, effective market strategy requires segmenting these beneficiaries based on their specific needs and struggles.
Traditional segmentation approaches often rely on demographic, firmographic, or psychographic characteristics. In contrast, the JTBD approach segments job beneficiaries based on:
This needs-based segmentation produces more actionable insights than traditional approaches because it focuses directly on the factors that drive purchasing decisions and product adoption.
In thrv's proprietary Jobs to be Done methodology, identifying and understanding job beneficiaries is a foundational step in creating growth strategies for portfolio companies. The thrv platform includes:
By focusing portfolio companies on their true job beneficiaries, thrv helps these companies create products and messaging that address the fundamental sources of demand in their markets, leading to accelerated growth and increased equity value.
Portfolio companies that clearly identify their job beneficiaries and focus their strategies on addressing these customers' needs gain significant advantages:
By putting job beneficiaries at the center of their strategy, portfolio companies establish a strong foundation for accelerated growth, increased market share, and ultimately enhanced equity value.