customer needs

How To Understand Customer Needs And Expectations

Customers are at the center of any business. In fact, businesses are built for customers, and without them, businesses may never grow. Little wonder you always hear phrases like “the customer is always right.” Customers can make or break a business. Your ability to attract customers and keep them happy rests on your understanding of your customer needs and solutions. 

Finding  Your Customer Needs and Expectations

Not only do you need to know their needs but their expectations and identify how to meet them. Statistics show that customer-focused businesses are 60% more profitable. So, are you struggling to satisfy your customers? Here are some ways to understand customer needs and expectations.

You will need to know how to better serve your customers to keep and retain them. 

First, let’s do a customer needs analysis!

Statistics show that customer-focused businesses are 60% more profitable. So, are you struggling to satisfy your customers? #smallbusinessowners Click To Tweet

Customer Needs Analysis

There are 4 big customer needs to understand. They are:

  1. Price
  2. Quality
  3. Choice
  4. Convenience

Therefore, you must be able to understand if each of these meets the criteria for your products and/or services.

What is the competition offering? What are they doing better or worse? How can you improve on the 4 big customer needs?  With today’s high inflation price is the #1 factor to understand. 

Are your prices sustainable through high inflation? Are customers beginning to complain about them? How does your quality compare to others in the marketplace? Maybe there is something you could improve upon without raising your pricing. Or you may be able to add additional products or services to give your customers more choices.

Finally, are you making it easy for customers to do business with you? Can they make purchases quickly?   These are the type of things you need to analyze to find out if your customer expectations are being met and how to improve upon them.

1. Generate Data from Customer Analytics

Even the smallest customer action can offer significant insight into what they need or expect from your business. Using behavioral tracking tools can help you understand how customers interact with your website and other business platforms.

For example, a popular tool like Google Analytics is designed to help you collect data and gain insight into different aspects of customer behavior on your website. Also, you can work with companies such as MCH Strategic Data to develop and use analytics to understand your customers’ needs on a deeper level. 

use good data
Use good data to understand your customer needs and solutions.

The right data should help you determine what customers don’t like about your product, what they don’t understand about your service, and how you can create a better experience for them. This will give you feed for finding customer solutions to their needs.

2. Ask for Direct Feedback from Your Customers

Sometimes, the best way to know what your customers need and expect from your business is to ask them to leave feedback. You can use different channels to make this possible, including customer surveys and client reviews on your website and other online platforms. Or you can also have face-to-face interactions with them if your business gives you physical contact with your customers.

Another option is to place a feedback box on your business premise and encourage customers to leave their comments and expectations in them. It may sound like an old-school approach, but it still works. 

Regardless of which option you use, it’s important to ensure that you find out what your customers think about your service at every stage of their buying process. You should focus on three main stages – the reservation stage, after purchase, and after-sales service.

3. Keep a Close Eye on Your Competitors

Another great way to understand customer needs and expectations is to keep a scrutinizing eye on your competitors. Believe it or not, your competitors can find ways to influence your customers’ needs and expectations by tweaking products or services or providing attractive perks. And such strategies can ‘force’ even your most loyal customers to start demanding the same from you. 

How to do a customer needs analysis
How to do a customer needs analysis with competitors.

Unfortunately, thanks to the increasing popularity of online shopping and eCommerce, you’re no longer competing just with the businesses nearby. Competing companies even miles away from your location can also put strategies in place to identify, influence, and meet your customers’ needs.

The best way to keep an eye on your competitors is to stay up-to-date with industry trends, know what your competitors are doing in the market, and find out your computers’ opinions about them. 

Your Turn

How are you identifying your customer needs and expectations? I’d like to hear more about it below in the comments. 

 

 

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