When we look at market sizing techniques through a jobs-to-be-done lens, we see that the size of a market can be calculated based on the number of potential job executors, the frequency with which they execute the job, and their willingness to pay to get the job done better. An attractive market is one that consists of a large number of underserved executors who have a high willingness to pay to get the job done better. This forms an effective market sizing calculation.
What distinguishes our approach is that a customer’s willingness to pay is not focused on what they would pay for any given product, which is the case for nearly all traditional market sizing techniques. Instead, it is focused on what they would pay to get the job done better.
For example, a patron may be paying $50 every time she visits the hair salon, but she may be willing to pay $100 if she could find a salon that would deliver the perfect results. If that were the case across the population, the size of the market would be twice what would be calculated using traditional methods. Ironically, using traditional market sizing methods, a company could conclude that the market had no growth potential and was a bad investment risk, when in fact the opposite was true.
We size the market in a new way, bringing needed insight and ensuring investments are only made in high-growth markets. This is part of our innovation process, Outcome-Driven Innovation (ODI). Learn more about our growth strategy consulting services.