Customer needs are the motivations that make someone want to buy a product or service and stay true to that business. People do not usually spend money without receiving something in return. Even when making a donation, there is an incentive like feeling good or connecting with a cause. To be successful, companies must take advantage of unmet customer needs and offer solutions.
What Are the Customer’s needs?
Customer needs are the psychological and physical motivations that make them want to buy a product or service and stay true to that business. For example, if a business doesn’t offer an online experience that’s on par with or better than an in-person experience, customers may go for a competitor who does.
What Are the 2 Main Types of Customer Needs?
Ultimately, the client’s needs are divided into two types: physical needs and psychological needs.
Physical Needs: In companies, the quality of a product or service is closely linked to the physical needs of customers. For example, a customer at a coffee shop is hungry and tired, so he needs a muffin and espresso. This behavior can be assigned to certain physical needs, but it is also intertwined with more complex psychological needs, such as a feeling of belonging or affinity to a particular brand.
Psychological Needs: Psychological needs come into play when there is an emotional reason behind the purchase. Once those basic physical needs are met, the reasons behind shopping turn emotional. Any pair of shoes can be fine to meet a physical need. But if the customer knows that his favorite brand donates a pair for every one purchased, that aligns with his personal values.
Psychological needs are an important factor when it comes to brand loyalty. According to one report, 74% of customers feel loyal to a particular brand or company, and 52% of them say they go out of their way to buy their favorite brands. Understanding the link between loyalty and customer experience (CX) is vital. Loyalty is tied to a customer’s ongoing choice to do business with a company, recommend it to others, and have a positive sense of relationship. In today’s competitive marketplace, a good customer experience can drive the success of a business.
What Are the Basic Needs of Customers?
1) Kindness
This is the most basic customer need associated with qualities like courtesy and empathy. Empathic agents are a leading indicator of a good customer experience.
2) Empathy
Customers want to know that the organization understands and appreciates their needs and circumstances. In fact, 49% of respondents indicated that they want agents to be empathetic.
3) Equity
Clients must feel that they receive adequate care and fair and reasonable responses.
4) Control
Clients want to feel that they influence the outcome. Customers can be empowered by listening to their feedback and using it to improve.
5) Alternatives
Customers want choice and flexibility in customer service; know that there are a variety of options available to satisfy them. In fact, high-performing companies are more likely to offer customers a choice of customer service channels. 50% of them have adopted an omnichannel support strategy, compared to 18% of their underperforming peers.
6) Information
Customers want to know about products and services in a relevant and urgent way; too much information and sales can be unpleasant for them. A knowledge base is a great way to provide existing users with the information they need, when they need it.
7) Time
Customer time is valuable and organizations should treat it as such. 73% of customers indicated that solving their problems quickly is the main component of a good customer experience. To meet that expectation, CX teams need customer service software that provides them with tools to respond to them quickly and efficiently.
How to Identify Customer Needs?
To identify customer needs there are some proven methods to consider, for example, focus groups, customer surveys, listening on social media, keyword research, and mapping the customer journey.
1) Focus Groups
A focus group is a deliberately chosen group of people who participate in a discussion on a specific topic. These groups are led by market research and facilitated by a moderator to encourage the active participation of all.
Focus groups are great for getting a feel for consumer sentiments and perceptions of a brand. They can also help collect psychographic data – information about a person’s values, interests, and attitudes, and what drives them to act.
2) Customer Surveys
Surveys are a traditional way of gathering information from larger groups of people. Most surveys are in question and answer format to provide metrics. Millions of surveys are sent out each year, and now most of them are conducted online.
If you want to understand what current (or potential) customers think of a product or brand, a survey can help you gain this insight. But surveys are only as good as their design: it is essential to be clear about what you want to know, how the questions are asked, what the demographic is, and how the survey is structured.
3) Listen to Social Networks
More and more companies see the importance of being present on social media for customer service. The data shows that users want to communicate in the same way that they do with their friends and family, and that is often linked to social networks.
Connecting with customers on their preferred channel also helps create a more meaningful relationship. Plus, it’s a great way to hear their real-time feedback on what they like (and don’t like). If you see the same questions or issues over time, it’s a good clue that you have a customer need to solve.
4) Keyword Research
The last time you were wondering where to find the best pair of hiking boots, what did you do? Most likely, you were looking for advice online. That’s what makes keyword research so important – it helps a business identify popular search terms and phrases that people enter into search engines.
5) Mapping the Customer Journey
To meet customer needs, you have to understand what they are looking for and where they are in the customer journey, from discovery to purchase. Customer journey mapping is the process of creating a visual representation of user interactions with a brand. It helps to see things from the customer’s perspective and to gain valuable insight into potential roadblocks and how to improve the experience.
The data shows that paying attention to the CX is critical. According to one report, about half of customers say they would switch to a competitor after a bad experience. That number increases to 80% after more than one bad experience. To keep customers happy and retain them, the CX has to be optimized. Customer journey mapping is a tool that can be used to find ways to create those great experiences.
Examples of Customer Needs
- Fast and reliable customer service.
- Convenient ways to get help, such as messaging channels.
- Options for contacting customer service.
- A knowledge base that enables customers to solve problems on their own, 24 hours a day, 7 days a week.
- Friendly and empathetic agents.
- Sustainable products and brands with a social conscience.
- Hassle-free returns.
- Transparent prices.
- Functional products that solve a problem.
- The right information, at the right time.
How to Meet Customer Needs?
- Providing excellent customer service.
- Generating empathy with the client in everything he does.
- Using Artificial Intelligence (AI) to predict customer needs.
- Knowing the customers and the buying patterns of the target customers.
In conclusion, understanding what customers need and how to meet their expectations means prioritizing them.