I’m currently dealing with a tricky customer. She wants everything on her terms, and she wants it all NOW! Except when she doesn’t, in which case she’ll let you know too. She may only be four months old, but this little one has no qualms about airing her grievances with her mom-ager. I must admit, however, that this tiny Karen has become easier to deal with in the last month or so—mainly because I now have a better idea of what she wants and how to give it to her.
When my daughter was a few weeks old, she was inconsolable for more hours of the day than I could manage, and my husband and I had no idea why. We tried gripe water, tummy rubs, elevated sleep positions, the chiropractor, and colic drops in all shades of bitter white… only to go to a doctor’s appointment to find out that she was underweight and all she needed was more food! Topping her up with bottles has changed this little diva from a mewling mystery to a happy, babbling baby (with perfectly chunky croissant thighs). [1]
What does this indulgent story of mine have to do with small business marketing? Well, too often, we find that businesses focus on what they think their customers want instead of servicing actual customer needs.
What are customer needs?
Customer needs are the specific motivations, requirements, desires, or problems that drive individuals to seek out and purchase products or services. These needs can be functional, emotional, social, economic, or related to convenience and overall experience.
Why should we care about customer needs?
Other than stopping them from crying, honing in on your customer’s needs can improve the longevity and progress of your business. Understanding and addressing customer needs helps businesses deliver value and build strong customer relationships. And happy customers = higher retention rates, lifetime value, and referrals.
You may also be interested in: How do you really know who your customer is?
What are the different needs of your customers?
Here are some of the main types of customer needs:
- Functional: Practical requirements related to the product or service’s core function, like our financial services client that files their customers’ tax returns.
- Emotional: Feelings and emotional responses. For example, we have a client that is a custom home builder. Their clients may seek a sense of security, prestige, or happiness from building or renovating a home.
- Social: Relate to a customer’s desire to fit in, be accepted, or connect with others. Social needs might drive purchases related to trends, peer influence, or social status (in some cases, the same example of the custom home builder’s clients apply!).
- Economic: The financial aspect of a purchase. Customers are often concerned with getting value for money, cost-effectiveness, and savings.
- Convenience: The ease of use and accessibility of a product or service. Customers often look for solutions that save time, are easy to use, or simplify their lives.
- Experience: These encompass the overall experience a customer has with a product or service, including factors like customer service, buying process, and post-purchase support. A positive experience was important to our Principal, Sara, when she needed a new fence:
How to identify customer needs
“You’ve got to start with the customer experience and work backwards to the technology. You cannot start with the technology and try to figure out where you are going to sell it.”
- Steve Jobs
The sentiment applies to any product or service. You need to focus on your customer’s problems, desires, and needs by gaining insights into their pain points, preferences, and expectations. You can then use this information to design solutions that address these needs directly. And you’re not done there; you’ll need to continuously refine and adapt your approach based on real customer feedback (just ask me all about that one!).
You may also be interested in: 3 reasons why everyone is not your customer
As a starting point, you can use our Digital Marketing Strategy Questions to help you develop a strategic plan and personas to reach and engage your audience.
Here are some ideas to continue refining your understanding of customer needs:
- Market research: Conduct surveys, interviews, and focus groups to gather direct feedback from customers about their preferences, pain points, and expectations.
- Customer feedback: Analyze reviews, complaints, and feedback from existing customers to understand their experiences and needs.
- Competitor analysis: Study competitors to identify gaps in their offerings and opportunities to address unmet needs.
- Sales data: Examine sales trends and purchasing patterns to identify what products or services are in demand and which features are most valued.
- Social media listening: Monitor social media platforms for customer conversations, trends, and sentiments related to your industry or products.
- Customer support interactions: Review interactions between customers and support teams to identify recurring issues and common needs.
- Website analytics: Use website data to understand user behavior, such as which pages are visited most and where users drop off, to gain insights into their needs and preferences.
From baby steps to business success
Understanding the different needs of your customers is crucial for any business aiming to make it in a competitive market. Just like my journey from clueless to (somewhat) more competent with my little one, you’ll find that gaining a clear understanding of what your customers truly require—and not just what you think they want—will lead to happier customers. And, trust me, that will help with the sleepless nights!
If you need help identifying your customers’ needs and a marketing strategy to meet them, we’d love to hear from you!
