Customer Needs - Revision history

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 == See Also ==
-*[[Cognitive Dissonance]]
+Understanding and addressing customer needs is fundamental to the success of any business. Customer needs can be defined as the explicit and implicit expectations or requirements of customers regarding a product or service. Meeting these needs is crucial for creating value, achieving customer satisfaction, and fostering loyalty. Businesses often conduct market research, customer feedback analysis, and persona development to better understand and anticipate their customers' needs.
 == References ==

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 == Definition of Customer Needs ==
-Business Dictionary defines Customer Needs as "problems that customers intend to solve with the purchase of a good or service.<ref>Defining Customer Needs [http://www.businessdictionary.com/definition/customer-needs.html Business Dictionary]</ref> A customer need is a motive that prompts a customer to buy a product or service. Ultimately, the need is the driver of the customer's purchase decision. Companies often look at the customer need as an opportunity to resolve or contribute surplus value back to the original motive.
+Business Dictionary defines Customer Needs as "problems that customers intend to solve with the purchase of a good or service.<ref>Defining Customer Needs [http://www.businessdictionary.com/definition/customer-needs.html Business Dictionary]</ref> A [[customer]] need is a motive that prompts a customer to buy a product or service. Ultimately, the need is the driver of the customer's purchase decision. Companies often look at the customer need as an opportunity to resolve or contribute surplus value back to the original motive.
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 The second lens is the who, the customer who desires the benefit and is willing to exchange something valuable like money or information. A good understanding of needs means identifying and understanding the right customers. Sometimes, the customer is simple to spot. If you sell a consumer product, your customer is the end consumer, the primary shopper who purchases the product. However, if you sell to a business, your customer is often a combination of several individuals who may seek one or more different benefits from your product, or your competitors’ products, and they must reach a consensus on what to buy. Not all customers perceive equal value in a benefit. A hospital purchasing manager may not see much benefit in a premium lightbulb with a lifespan 20 times longer than a traditional bulb. However, a maintenance manager, whose budget pays union wages to the workers changing lightbulbs every day, may value the same benefit much more. Similarly, demographics, firmographics, behaviors and attitudes also vary by customer. Male consumers may differ from female consumers. Managers at small businesses differ from those at large businesses. And while one investor may be comfortable with a large amount of risk and volatility, another may prefer security and stability. Even two otherwise similar individuals may hold different opinions.
-'''The Context'''<br />The third and final component of a need is the context, the when or where that a customer desires a benefit. Needs are never spontaneous; they are situational. A benefit only has value if it solves a problem for a customer at a given time or in a given place. Common contexts include: a physical place or setting such as at work, at home or in the car; an occasion, such as a dinner date or business meal; a daypart, such as morning, afternoon or evening; or even a life stage, such as getting an education, raising children or preparing to retire. Context helps us explain why a benefit has customer value and how that value may change as the context changes. Of course, not every context is relevant to every product category. As you might imagine, daypart or occasion contexts are more relevant to a foodservice or entertainment business, while life-stage contexts are more relevant to a financial-services business. In addition, contexts are rarely static, and customers regularly move across them. A [[Chief Executive Officer (CEO)|business executive]] flying today for a meeting may be on the same plane next week for her family vacation. And she may be saving for her retirement at the same time she is saving to finance her children’s education. She may have dinner with her husband tonight but eat with a client at another restaurant tomorrow. In each case, she values the delivered benefits differently.
+'''The Context'''<br />The third and final component of a need is the context, the when or where that a customer desires a benefit. Needs are never spontaneous; they are situational. A benefit only has value if it solves a problem for a customer at a given time or in a given place. Common contexts include: a physical place or setting such as at work, at home or in the car; an occasion, such as a dinner date or business meal; a daypart, such as morning, afternoon or evening; or even a life stage, such as getting an education, raising children or preparing to retire. Context helps us explain why a benefit has customer value and how that value may change as the context changes. Of course, not every context is relevant to every product category. As you might imagine, daypart or occasion contexts are more relevant to a foodservice or entertainment business, while life-stage contexts are more relevant to a financial-services business. In addition, contexts are rarely static, and customers regularly move across them. A business executive flying today for a meeting may be on the same plane next week for her family vacation. And she may be saving for her retirement at the same time she is saving to finance her children’s education. She may have dinner with her husband tonight but eat with a client at another restaurant tomorrow. In each case, she values the delivered benefits differently.

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 == See Also ==
-[[Customer]]<br />
+*[[Cognitive Dissonance]]
 == References ==

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 [[Customer Lifetime Value]]<br />
 [[Customer Loyalty]]<br />
 [[Customer Service]]<br />
 [[Customer Service Management]]<br />

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 == The Myths About Customer Needs<ref>The Myths About Customer Needs [https://blog.experientia.com/debunking-myths-about-customer-needs/ Experienta]</ref> ==
-In 2009 Lance A. Bettencourt, then with StrategyN, wrote a piece on giving customers the proper role in the innovation process by forming correct beliefs about their needs. “Vague, solution-tainted requirement statements have led practitioners and academics alike to believe several myths about the nature of customer needs. Based on our experiences with companies across a variety of industries, my colleagues and I have identified five myths that have a particularly pernicious effect. Like all myths, they have a basis in reality, but their unquestioned acceptance as truth is leading many companies astray—leading to wasted resources, disjointed innovation executions, missed growth opportunities, and product concepts that miss the mark with customers. It’s time to expose each myth and reestablish a proper valuation of customer needs in the strategy and innovation process.”
+Lance A. Bettencourt, of Texas Christian University, wrote a piece on giving customers the proper role in the innovation process by forming correct beliefs about their needs. “Vague, solution-tainted requirement statements have led practitioners and academics alike to believe several myths about the nature of customer needs. Based on our experiences with companies across a variety of industries, my colleagues and I have identified five myths that have a particularly pernicious effect. Like all myths, they have a basis in reality, but their unquestioned acceptance as truth is leading many companies astray—leading to wasted resources, disjointed innovation executions, missed growth opportunities, and product concepts that miss the mark with customers. It’s time to expose each myth and reestablish a proper valuation of customer needs in the strategy and innovation process.”
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 == Further Reading ==

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 *Collect customer feedback on how your efforts meet their expectations.
-[[File:Customer_Needs.png|400px|How to meet customer needs]]<br />
+[[File:Customer_Needs.png|300px|How to meet customer needs]]<br />
 source: Conductor
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 **Values: A customer buys a product or service for unique, individual values, real or perceived, they believe it will help them fulfill. The customer might think the computer will help them to be more creative or artistic and unlock other personal or professional artistic opportunities.
 As you might imagine, the reasons for purchasing something can vary from customer to customer, so it's important to conduct these customer surveys, collect the answers, and group them into these three categories. From there, you can identify which of the motivating factors you're solving for, and which you can improve on to make your product or service even more competitive in the market.

← Older revision		Revision as of 18:27, 10 October 2019
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	After you've identified what your customer needs from you, take the data you've collected seriously. If customers (or potential customers) are asking for something, big or small, make sure you deliver. Businesses that have a developed methodology for how they collect and share customer insights within their org will have the best luck at meeting customer needs quickly. For some businesses, that could mean assigning a dedicated team to collect customer insights. Other businesses may be able to roll it into the responsibilities of existing departments. If you develop a strong system for how you discover, analyze and address customer needs, your organization will be set up for long-term success. So take the time and put in the legwork.		After you've identified what your customer needs from you, take the data you've collected seriously. If customers (or potential customers) are asking for something, big or small, make sure you deliver. Businesses that have a developed methodology for how they collect and share customer insights within their org will have the best luck at meeting customer needs quickly. For some businesses, that could mean assigning a dedicated team to collect customer insights. Other businesses may be able to roll it into the responsibilities of existing departments. If you develop a strong system for how you discover, analyze and address customer needs, your organization will be set up for long-term success. So take the time and put in the legwork.
		+
		+
		+	== Customer Needs Analysis<ref>What is a customer needs analysis? [https://blog.hubspot.com/service/customer-needs Allie Breschi]</ref> ==
		+	A customer needs analysis is used in product development and branding to provide an in-depth analysis of the customer to ensure that the product or message offers the benefits, attributes, and features needed to provide the customer with value. To conduct a customer needs analysis successfully, you need to do the following:
		+	*Customer Needs Analysis Survey: The customer needs analysis is typically conducted by running surveys that help companies figure out their position in their respective competitive markets how they stack up in terms of meeting their target customers' needs. The survey should primarily ask questions about your brand and competitors, as well as customers' product awareness and brand attitudes in general. Questions can include:
		+	**Questions about positive and negative word associations with your brand
		+	**Questions asking customers to group your brand in with similar and/or competing brands
		+	**Questions comparing and sorting brands according to their preferences for usage
		+	*Means-End Analysis: Once you've conducted the customer needs analysis survey, you can use the answers to get a fuller picture of the reasons why your customers purchase from you, and what makes your product or service stand apart from your competitors'. A means-end analysis analyzes those answers to determine the primary reasons why a customer would buy your product. Those buyer reasons can be divided into three main groups:
		+	**Features: A customer buys a product or service because of the features included in the purchase. If the customer were buying a computer, for example, they might buy it because it's smaller and more lightweight than other options.
		+	**Benefits: A customer buys a product or service because of a benefit, real or perceived, they believe it will offer them. The customer might also buy the computer because it syncs easily with their other devices wirelessly.
		+	**Values: A customer buys a product or service for unique, individual values, real or perceived, they believe it will help them fulfill. The customer might think the computer will help them to be more creative or artistic and unlock other personal or professional artistic opportunities.
		+	As you might imagine, the reasons for purchasing something can vary from customer to customer, so it's important to conduct these customer surveys, collect the answers, and group them into these three categories. From there, you can identify which of the motivating factors you're solving for, and which you can improve on to make your product or service even more competitive in the market.

← Older revision		Revision as of 18:20, 10 October 2019
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	*What they expect of you: In order to gain repeat business, understand what the customers value your brand as.		*What they expect of you: In order to gain repeat business, understand what the customers value your brand as.
	*What they think about you: Know what they are in order to tackle them and keep them content for future sales.		*What they think about you: Know what they are in order to tackle them and keep them content for future sales.
		+
		+
		+	== Meeting Customer Needs<ref>How to Meet the Needs of Customers [https://www.conductor.com/learning-center/customer-needs/ Conductor]</ref> ==
		+	One can follow a simple, four-step procedure to meet the needs of customers.
		+	*Identify what your customers need from you through keyword research, focus groups, or social listening.
		+	*Distribute the information to relevant stakeholders in your organization.
		+	*Craft product features or create content that speaks to your customer’s needs.
		+	*Collect customer feedback on how your efforts meet their expectations.
		+
		+	[[File:Customer_Needs.png\|400px\|How to meet customer needs]]<br />
		+	source: Conductor
		+
		+	After you've identified what your customer needs from you, take the data you've collected seriously. If customers (or potential customers) are asking for something, big or small, make sure you deliver. Businesses that have a developed methodology for how they collect and share customer insights within their org will have the best luck at meeting customer needs quickly. For some businesses, that could mean assigning a dedicated team to collect customer insights. Other businesses may be able to roll it into the responsibilities of existing departments. If you develop a strong system for how you discover, analyze and address customer needs, your organization will be set up for long-term success. So take the time and put in the legwork.