The growth of every business depends on its customers. Customers have the power to determine the sustainability and success of your business. Happy customers result in increased retention rates, lifetime value, and a popular brand image. Therefore it's crucial to identify customer needs and assess those needs to gain happy customers. Today we’ll learn everything about customer needs and customer needs assessment techniques that you should know to scale your business. So, tighten your seat belts and get ready to take off.
Topics that we’ll cover are:
- What are customer needs?
- Importance of identifying customer needs
- Ways to identify Customer Needs
- What is Customer Needs Assessment?
- Importance of Customer Needs Assessment
- Ways to conduct Customer Need Assessment
- Why use Olvy for Customer Needs Assessment?
What are customer needs?
Customer needs are the compelling factors that induce customers to purchase your product or service. The customer will only make a purchase if that product or service maximises their customer satisfaction. This is only possible if you know what their expectations are from your product or service.
It is vital to know who your customers are to fully understand and identify their needs. But why is it even important to identify customer needs? We'll discuss it in the next section.
Importance of identifying customer needs
The more you know about your customers, the easier it will be to build your market position around their needs, which can benefit your business in the following ways:
- Provide speedy solutions: Customers need real-time assistance. Analysing customer needs can help you deliver speedy and real-time solutions to their problems.
- Improvement in products and services: Identifying customer needs can help you identify where your product or service is lacking in providing maximum benefits to the customers. So, needs identification provides the scope of improvement.
- Reduce customer complaints: Keeping your customer’s needs in mind before building products or offering services can reduce their complaints as it will deliver effective customer solutions.
Just knowing about customer needs won’t work, it’s important to make use of that information. So, it’s time to know how your business can benefit from understanding customer needs. Let’s move to customer needs assessment so that you can get perfection in customer success management and maximize customer satisfaction.
What is Customer Needs Assessment?
Customer Needs Assessment is a detailed examination of customers’ needs and expectations. It identifies the specific customer needs and the ways by which these needs can be fulfilled. It is a way to identify how a business or company can improve customer satisfaction and loyalty.
Even if you are in contact with your customers, it’s possible to misinterpret customer needs. That's why the customer needs assessment exists. Every company should perform this assessment to satisfy their customers' needs.
Importance of Customer Needs Assessment
Performing a task without knowing its importance is not worth it. Before planning to perform a customer needs assessment, you should know the importance of customer needs assessment. So, let’s know about it.
Customer needs assessment is important as it helps to:
- Understand the wants and needs of customers
- Understand the improvements that you can make within the products and services
- Become more strategic in developing action plans for specific gaps
- Enhance communications to meet customer expectations
- Analyse what your customers are offering in the market
Ways to conduct Customer Need Assessment
Customer needs assessment is crucial for every business to acquire happy customers. So, let’s have a look at these 5 ways that you can use to conduct a customer needs assessment.
Conduct Market Intelligence Research
For customer needs assessment, you can conduct Market Intelligence research. In this, you gather data regarding the market. This will help you in determining the target market group, penetration, and total opportunity.
Market intelligence will give you a broad picture of the market in which you sell.
How to do market intelligence research
- Decide on a goal: The first step is to decide the goals of your research. To get most of the benefits from the research, you must first define its scope.
- Establish metrics: Next step is to establish metrics so that you can assess the outcomes after establishing the goals of your research.
- Develop a research strategy: Various methods can be used to gather market intelligence data. You can use trade publications, industry experts, consumer reviews, and more through online research. So, develop a research strategy to stick to a process.
- Evaluate information: Now, it’s time to transform that data into information that your company can use to make decisions.
- Act on the insights: At last, there is no use of research if you won’t act. So your next task is to make improvements based on insights that you gathered from market intelligence research.
Customer feedback matters to every business and this feedback can help in customer needs assessment. So, collect feedback from customers and try to act according to them.
You can use various methods to collect feedback from customers and some of them are:
- Send a follow-up email
- Initiate SMS surveys
- Conduct customer interviews
- Analyze recorded sales calls
- Offer incentives for feedback
- Host a social media contest
- Adopt Net Promoter Score
- Include post-purchase feedback
- Use feedback monitoring sites
Analyze and predict customer behavior
Customer needs can only be identified when you know the customer's behaviour. Being a human, customer behaviour is unpredictable. So, a technique called the Behavior Analysis approach can be used to predict and analyze customer behavior. It helps in identifying the purchase cycle stage for each customer.
How to implement the Behaviour Analysis approach?
- Shift your concern towards finding out customer problems.
- Your customer’s behaviour is the result of their problem. So, observe your customer’s behaviour as to how they respond to problems they face.
- Identify and observe the relationship between the customer problems and their behavior.
- Provides suggestions for how to alter the customer behavior to bring about positive change in the product or service.
Conducting competitive analysis of similar products or services
By conducting a competitive analysis of similar products, you can identify what your customers need and how you can maximize customer success management by improving customer satisfaction.
How to conduct competitive analysis?
- Assess your current product pricing
The first step in any product analysis is to assess current pricing so that your pricing should match with market prices
- Compare key features
Now, you have to compare your features with other company’s similar products or services. This will help you in identifying features that you can add to improve your product or service.
- Pinpoint differentiators
In this step, you need to find out the differentiation of your product i.e., the features that make your product different from competitors.
- Identify market gaps
The final step in a competitive product analysis is to seek for market gaps that could assist your company gain a competitive advantage.
Conduct SWOT analysis for your company
To understand your strengths, weaknesses, opportunities, and threats, conduct a SWOT analysis.
You'll be able to contrast your competitors' weaknesses with your own, and vice versa. By doing so, you will be able to better position your company and begin to improve business processes inside your own business.
Why use Olvy for Customer Needs Assessment?
You know the importance of customer needs assessment in scaling your business. Also, you have gone through the ways you can conduct customer needs assessments. To lessen your burden and reduce the time investment on assessment, you can make use of Olvy’s customer needs assessment tools. These tools will smoothen your assessment process. Here are some other benefits of using Olvy’s customer needs assessment tools.
- Quick feedback: Using Olvy’s customer needs assessment tools will help you get quick customer feedback. You can immediately examine the data you've collected and apply the analytics to improve your customer support with instant results.
- Easy tracking and analysis: These tools will make it easy to track and analyze customer feedback as you don't need to manually perform the tracking and analysis.
- Highly accurate insight into customer pain points: Olvy’s customer needs assessment tools will help you to get more accurate insights about customer needs so that you can easily work on exactly what your customers expect from your products.
Nobody knows your customers or business like you do. So, be a good decision maker and choose whatever is best for your business.