NEW YORK–When it comes to meeting member “needs,” credit unions often go all about it in the wrong ways, according to one expert, who also shared an “ah-ha” finding of value to CUs that was uncovered by some new research.
Stephen Wunker is an Innovation Consultant and co-author of the book, “Jobs to Be Done,” which forwards the theory that people purchase products and services to solve a specific problem that is often based as much on want as need. As a result, companies should focus on the “want” first and foremost, he said.
It’s a simple practice that can remake how companies approach their markets, posits Wunker, but it isn’t often practiced. The book includes a roadmap on the “Jobs to be Done” process that formed the basis for much of Wunker’s remarks to the THINK 17 Conference here.
“A lot of times when we think of problems from the perspective of a company, we fall back on the tried and true things we’ve done for 20 years, like pricing and placement, and that’s important,” said Wunker. “But a lot of consumption occurs because occasions arise in our lives that create a need for something. By digging into that occasion and understanding what you’re really trying to get done, very frequently you find there are opportunities there. So, ‘jobs to be done’ is a way to go beyond the product and service you have today and really expand out to what are your customers trying to get done in their lives. It’s not just what are they buying today. It’s about how can you play a role in that.”
Three Key Points
Three key points in comparing jobs vs. needs, according to Wunker, are:
- Take a very broad view of context and underlying demand drivers.
- Provide a True North for Innovation and positioning efforts
- Illustrate tensions between jobs, obstacles, and other elements of the “Jobs Atlas”
As an example, he cited the Mini Cooper, which competes in a very crowded small car market in a different way than other vehicles. The “job” the Mini is trying to get done, said Wunker, isn’t about transportation as much as it is self-expression. “And because it has nailed that, it is able to charge a huge premium over other cars in its class,” he said.
The “Jobs Atlas” referenced above is a reference to a tool featured in Wunker’s book that take a “holistic, 360 view of what opportunities should be. It centers first on that job to be done. And then why do people prioritize different jobs at different times.”
“A lot of companies start with the customer journey and the pain points, and that’s important,” he said, adding that companies that don’t first ask what it is that people are really trying to do will never meet the market’s expectations.
The Jobs Atlas
In that Jobs Atlas, a business or project team must Know Where You are Staring (context on what’s happening today); Chart the Destination (stakeholders’ definition of a win and the roadblocks), and Profit from the Journey (understand how demand becomes a viable solution).
As an example, Know Where You are Starting, Wunker highlighted a credit card company looking to better meet the wants of cardholders and prospective cardholders. It examined offering airline miles (which are expensive) to better serve more affluent segments, and in particular, at business travelers and small business owners. What did those segments really want? Did they want more airline miles? Wunker said the answer was no, as they already travel quite a bit. Instead, what they wanted was a way to maximize the limited amount of downtime they have at home.
“So, the company came out with series of events its cardholders could have access to that were real experiences that were not commodities, that would be remembered for years, and were cheaper than airline miles,” he explained.
When it comes to Chart the Destination and the Roadblocks, a company or organization must first identify the success criteria shareholders will use to determine their interest in a new solution, he said.
“Often ‘jobs to be done’ isn’t about solving every job in every possible way and solving every problem,” he said. “You’re looking at why doesn’t consumption occur and what does the customer need?”
Wunker cautioned that “ignoring the emotional component of people dehumanizes how decisions are made.”
Research Offers Opportunities
In conjunction with CO-OP, Wunker also revealed the results of some new consumer research related to financial services. In all, there were 521 total respondents, of which 300 were CU members, 109 of whom had CU lending accounts. There were 221 bank lending account-holders in the survey.
The survey probed for where consumers felt most “under-satisfied” with their personal financial picture.
Consumers responded this way:
- Feel financially secure (a gap the research quantified as 1.63)
- Avoid stressing over finances (gap. 1.39)
- Eliminate all of my debts (aside from my mortgage) (gap 1.32)
- Set aside money for major expenses (gap 1.13)
- Reduce worry about financial surprises (gap 1.10)
- Save for a rainy day or emergency fund (gap 1.08)
- Plan for my children’s educational expenses (gap .052)
- Track if I am spending what I can afford (gap 0.45).
“What is striking to me is how little of this is addressed by credit unions and banks,” said Wunker. “A lot of these things are not addressed, and yet they could be. Some of the things were not surprising, but others were and are illuminating about where you might want to take things in the future.
“Credit union members were by and large a little bit more averse to debt than non-members; they valued access to branches a little bit less; Millennials valued branches more than non-Millennials, and the difference was pretty substantial,” he continued.
Not surprisingly, credit unions were trusted more than other types of financial advisors, with a big gap over banks.
“The current approaches and pain points highlight opportunity areas for credit unions,” he said. “Most people are not doing any of the things they should be doing.”
While fintechs get a lot of attention in the credit union space, Wunker said the research found low levels of trust in a start-up providing financial services.
The Big 'Ah-ha'
“The big ‘ah ha’ is that relative to both bath banks and fintechs, credit unions are seen as trustworthy territory for learning about products, changing financial habits, and potentially going deeper into consumers’ lives as well,” Wunker emphasized. “But those opportunities are often not seized upon today.”
When it comes to “takeaways” from what Wunker said he has learned, he urged credit unions to recognize that “jobs to be done” goes deeper than “needs” or “features.”
“Jobs are only one piece of understanding the market.
The Jobs Atlas is a “disciplined way to illustrate tensions, obstacles, and synergies among its component parts,” he said. “To get done, ask what are the jobs that your target-members are trying to get done. Map the entire process of customer behavior, including more than the end user/purchaser. Keep digging and asking why to get at root causes. Find what people are trying to accomplish. Create a hierarchy of stakeholder jobs and priorities. And uncover ways to satisfy both functional and emotional jobs.”