Customer needs

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Customer needs - a set of unique needs and expectations wich every customer has. Meeting them is strictly connected with the customer's experience and satisfaction.The company's point is not only to meet properly the needs but also to exceed them to build the best relationship with the customer. The customer expects that these needs will be fulfilled by the product or service he/she chooses. Customers needs are not the synonym for customer requirements - needs are variable and depends on different factors e.g. time or age and requirements are "fixed and mostly internal" (Harrington H.J. and McNellis T. 2006, p.88).

Identifying customers needs

Recognizing customer's needs is the key point for every enterprise because based on their way to achieve customer satisfaction can be identified.The company aims to discover these needs and expectations because this would lead in the end to bigger customer satisfaction which is "key to continuing to earn profit" (Jackson K. and Fringon N.L 1998, p.2). It's a tough task to do for companies because the needs are changing all the time. Microeconomics proves that the needs are changing because when the want has been met (eg.chocolate ice cream) the customer is no longer willing to rebuy this product in near future because of his/her craving for that particular product have been satiated. Identifying the customers' needs starts with listening to the VOC - Voice of Customers. At this point, it is vital to profile the customer population and "then integrate premier-customer base into internal- organization process"(Harrington H.J. and McNellis T. 2006, p.88). Nowadays, companies are getting consumers' opinions and recognizing their new wants through the Internet. Even though we can point out a few methods of identifying customers needs such as:

  • "qualitative and ethnography interviews" (Urban G.L. 2003, p.3),
  • Conjoint analyses,
  • AIO studies (activities, interests, and options),
  • Tailored interviewing.
  • Customer surveys
  • Steering committees - meeting which gathers five of the organization's biggest consumers

Types of customer needs

We can divide customer types into two main groups:

  • expressed - they are communicated and admitted by the consumer, for identifying them commonly are used traditional techniques of market researches such as surveys or interviews.
  • latent - they "cannot be articulated" (S.F. Slater and J.C. Narver 1998, p.1001), and are harder to discover by a company than the expressed ones and require using untraditional market researches such as observing user's daily routine actions.

Fulfilling customers needs

Mostly, to satisfy consumers' needs it is vital need to focus on three main attributes: Quality, Schedule and Cost. Maslow's hierarchy of needs refers to the customers' needs as well, when the one individual need is fulfilled the hierarchy is being advanced up and then new needs, which have not existed before can appear and the customer will start looking for new attributes of the product (Harrington H.J. and McNellis T. 2006, p.88). Considering customers' needs we need to think of two things: the place of the company in the supply chain and moment when the customer is meeting company (customer interfaces). Every company can have different ways to respond to these needs - mostly they consider customer relations and servicing of customers. Improving the area of customers' needs can lead to an increased competitive edge, but also can have a positive impact on the company's management and employees' workplace. For example, a truck can meet around 100-150 different customer needs (G.L. Urabn and J.R. Hauser 2003, p.2).

Examples of Customer needs

  • Meeting basic needs: A customer may need basic necessities such as food, clothing, shelter, or transportation.
  • Gaining access to services: A customer may need access to services such as healthcare, banking, or education.
  • Enjoying leisure activities: A customer may seek out entertainment activities such as going to the movies, attending a concert, or playing a sport.
  • Reaching personal goals: A customer may have personal goals such as getting a college degree, starting a business, or finding a better job.
  • Gaining recognition: A customer may look to receive recognition from peers or superiors, whether it's through awards, promotions, or public accolades.
  • Fulfilling emotional needs: A customer may seek to have their emotional needs met, such as feeling connected to others, feeling secure, or feeling respected.

Advantages of Customer needs

The advantages of understanding customer needs are numerous and can help a business to succeed. These include:

  • Increased customer satisfaction – By understanding customer needs, businesses can tailor their products and services to meet the exact needs of their customers. This can lead to higher customer satisfaction and loyalty, as customers feel that their needs are being met.
  • Cost savings – By understanding customer needs, businesses can avoid costly mistakes in product development by ensuring that the products and services they offer meet the desired customer needs. This can help to reduce product waste and increase efficiency.
  • Increased revenue – Understanding customer needs can help a business to identify new opportunities for growth. This can lead to increased revenue by offering products and services that meet the customer needs.
  • Improved customer relationships – By understanding customer needs, businesses can build stronger relationships with their customers. This can help to encourage repeat customers and create a positive customer experience.

Limitations of Customer needs

Customer needs can be a powerful tool for marketers to develop strategies for their products and services. However, there are certain limitations to consider when utilizing customer needs in marketing. These limitations include:

  • The difficulty of accurately assessing customer needs: It can be difficult to accurately measure the needs of customers, as they may not always be aware of their own needs or may not be able to articulate them.
  • Inability to accurately predict customer needs: Marketers may be unable to accurately predict customer needs that may arise in the future.
  • Lack of data available to track customer needs: There may be limited data available to track customer needs due to the difficulty of data collection.
  • Time consuming to assess customer needs: Assessing customer needs can be a time-consuming process, as it requires research and analysis.
  • Inability to cater to individual customer needs: It may be impossible to cater to the individual needs of every customer due to resource or cost constraints.

Other approaches related to Customer needs

Here are some other approaches to meet customer needs:

  • Customer segmentation - This is the process of dividing customers into groups based on shared characteristics so that companies can better target their products and services.
  • Relationship marketing - This approach focuses on building relationships with customers by providing personalized service, responding quickly to customer inquiries, and offering loyalty programs.
  • Voice of the customer (VOC) - This is a method for gathering customer feedback that helps companies understand how customers feel about their products and services.
  • Customer experience management (CEM) - This is a method of managing the overall customer experience through gathering customer feedback, analyzing customer data, and making changes to improve the customer experience.
  • Personalization - This is the process of tailoring products and services to meet the unique needs of individual customers.

Summary: These approaches are aimed at meeting customer needs by segmenting customers, building relationships, gathering customer feedback, managing the overall customer experience, and personalizing products and services.


Customer needs — recommended articles
Importance of market segmentation — Analysis of customer — Market segmentation process — Customer driven — Product research — Segmentation and targeting — Customer segmentation model — Brand promise — Customer focus

References

Author: Barbara Fidelus

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