Why Customer Needs?
According to PwC, 26% of consumers stopped using or buying a product in 2021 for various reasons, most likely because of a negative customer experience. On the other hand, 82% of consumers would be open to sharing personal data with brands in exchange for a better customer experience. So, it’s a win-win for brands that can meet their needs and provide a positive customer experience.
Meeting the needs of customers is like trying to guess what is relevant and what isn’t to a group of people that you don’t know. For example, when I was in the market to refinance my home a few years ago, I was targeted by advertisers in my Gmail, Facebook, Instagram, Google search results, and more. The ads followed me everywhere.
I noticed every billboard, commercial, podcast, and radio ad. I overheard conversations in the grocery store, the office, and other public places when “refinance” was used. Off the top of my head, I could tell you the interest rate of every bank and credit union for a 30-year fixed mortgage.
This was my need. I needed to find the best interest rate possible for my current situation. Interestingly, the minute I closed escrow on my refinance, I stopped noticing the ads, conversations, billboards, etc. The reality is that they were still there, but the “refinance” messaging did not meet my needs any longer. It was no longer relevant.
They say that the customer is always right. Not sure I agree with that, but let’s go with it for this post. Marketers need to understand what customers want and quickly respond to their needs. With big data becoming more readily available, there are now more ways than ever for a brand to acquire customer feedback and use it to improve the customer experience and products they introduce into the market.
It’s no secret that meeting the needs of customers should be the primary focus of any marketing or corporate communications strategy. However, understanding those needs can be difficult because they constantly change. And as soon as you think you’ve figured them out, they change again.
What are Customer Needs?
These are the psychological, emotional, and physical motivations that encourage a customer to take action and buy a product or service. That “reason to believe” or customer need becomes the reason for purchasing.
For example, a customer’s need develops once a decision is made to purchase a new vehicle. Perhaps the existing car has ongoing engine trouble and is becoming too expensive to fix every six months. Gas prices might be a factor. Or, maybe a teenager at home just got their license. Whatever the reason, the customer’s need is to buy a new car. The car type, make, model, color, used, unique, and leasing options will determine how customers satisfy their needs. It’s up to companies and brands to uncover the customer’s unmet needs and reach them with relevant content, messaging, and ads.
Why Are They Important?
Brands must understand what their customers want and stay ahead of the competition. This can be done through a market analysis, which involves collecting audience data about potential and current customers. Once a business has this data, it can use insights to inform brand messaging or product development. This is crucial in meeting customers’ unmet needs and maintaining long-term business growth.
When brands don’t understand their customers’ needs, they risk losing them to a competitor. By understanding these needs, they can develop a product or service that meets those needs to differentiate themselves from their competitors. Businesses must understand what customers expect from the brands they buy from.
Common Types of Customer Needs
This should be the foundation of your marketing approach. So, it’s essential to understand what makes your customers tick. If you can identify your customers’ needs, you’ll be better equipped to convert them into paying customers.
Many of these will be familiar if you have read Maslow’s Hierarchy of Needs.
Table: Common Types
| Need Type | What It Means | Brand Implication |
|---|---|---|
| Basic | Survival needs like food, water, shelter, clothing | Offer essentials with reliability and accessibility |
| Safety | Feeling secure and protected | Ensure privacy, safety features, and data protection |
| Belonging & Love | Feeling accepted and connected | Create community and shared identity |
| Self-esteem | Feeling valued and respected | Recognize, reward, and elevate customer status |
| Self-actualization | Achieving personal or professional goals | Help customers unlock potential and aspirations |
| Functional | Product solves specific problems | Prioritize performance and usability |
| Social | Interacting with others | Foster connections and shared experiences |
| Emotional | Feeling positive and cared for | Deliver empathy, delight, and emotional resonance |
| Mental | Stimulating intellect | Showcase innovation and thoughtful content |
| Spiritual | Connecting to purpose or higher meaning | Align with values and ethical missions |
| Creative | Expressing creativity | Enable self-expression through tools or environments |
| Hedonic | Seeking pleasure or enjoyment | Focus on enjoyment, luxury, or immersive experiences |
| Nutritional | Supporting health and wellness | Offer nutritious and health-conscious options |
| Environmental | Protecting the planet | Demonstrate sustainability and green practices |
| Economic | Getting good value for money | Balance cost with quality and fairness |
| Political | Aligning with political beliefs | Take clear, authentic stands on societal issues |
Responding to Customer Unmet Needs
If you want your brand’s narrative to truly connect, you need to integrate customer unmet needs into the story you tell. Customers expect brands to be sincere, showing genuine care in every interaction.
Successfully responding requires a thoughtful strategy and concerted effort. Here are some best practices for companies seeking to understand and address their customers’ priorities deeply:
Table: Summary of Best Practices
| Strategy | Description |
|---|---|
| Be sincere | Be genuine in interactions with customers. |
| Listen | Ensure you listen and consider what they want and care about. |
| Respond quickly | Be responsive to customer questions and concerns. |
| Be flexible | Be flexible in meeting their needs and preferences. |
| Offer solutions | Offer solutions that solve customer problems. |
Foster Sincerity in All Interactions
Authenticity is critical – customers can instantly detect insincerity. Every customer touchpoint should focus on developing genuine connections, from sales calls to social media engagement. Avoid scripted language and corporate-speak. Instead, communicate in a real, human way that demonstrates true interest in customers’ perspectives.
Sincere listening is the foundation. Let customers share without interrupting. Ask thoughtful follow-up questions that show care for their unique situation. Validate emotions expressed, even when unable to offer immediate solutions. Companies reinforce their commitment to customers’ best interests by leading with empathy and compassion.
Make Listening a Priority
Listening is an art – when done well, customers feel heard and understood. Set aside assumptions and fully concentrate on customers’ words, needs, and body language. Reflect on key points to confirm understanding. Capture feedback through surveys, interviews, and other tools to quantify insights.
Listen even when the feedback may be critical or uncomfortable. Remaining open-minded rather than defensive demonstrates respect. Collective listening across functions and departments provides a holistic view of pain points. Absorbing customer perspectives guides more relevant product and service enhancements.
Respond Rapidly and Effectively
Customers value speedy resolution to inquiries. Establish processes and prepare staff to handle various issues efficiently. Empower representatives to make judgment calls to solve problems on the spot when feasible. For more complex matters, lay out next steps and timeline expectations upfront.
Technology can assist with rapid response – use chatbots, help ticketing systems, and call/email routing to quickly connect customers with the right agent. Monitor and optimize response metrics like time-to-resolution. Prompt, thoughtful, complete responses reinforce a customer-first commitment.
Remain Flexible to Evolving Needs
Regularly adapt offerings to align with customers’ changing needs and preferences. Use feedback to identify areas for innovation and features that may be underutilized. Willingness to adjust rather than rigid adherence to the status quo is key.
Balance flexibility with avoiding over-customization that increases complexity and costs. Focus on modifications that solve high-priority needs first. Champion agility throughout organizational culture, processes, and systems to respond rapidly. Frame flexibility as an ongoing partnership with customers throughout evolving journeys.
Deliver Valuable Solutions
Providing tailored solutions demonstrates a deep understanding of customers’ unique situations. Avoid one-size-fits-all approaches – recognize each customer has specific struggles needing customized resolution. Offer a mix of general suggestions along with ideas personalized to their needs.
Back solutions with expertise and evidence on why the approach can work. Provide implementation support rather than just ideas. Focus solutions on helping customers achieve their goals versus pushing products. Blend education, advice, and instruction to equip customers to address issues now and in the future.
Final Thoughts
Understanding customer unmet needs is critical for brands of all sizes. By aligning this with their brand strategy, brands can differentiate themselves from their competitors and better meet the needs of their target market. There are many ways that organizations can use customer feedback to uncover unmet needs, including online surveys, social media, in-person interviews, and focus groups.
Additionally, brands can keep up with industry trends, conduct market research, listen to customers, and use data analysis to better understand customer needs. By asking questions, businesses can get to the root of their customers’ needs, develop products or services that meet them, and communicate that value through an integrated PESO marketing strategy.
FAQ
What is the importance of understanding customer unmet needs?
Understanding unmet needs is pivotal for crafting effective marketing and communication strategies. It allows brands to create products, services, and experiences catering to consumers’ dynamic and evolving demands, enhancing customer experience and loyalty.
How do unmet needs influence their purchasing decisions?
Whether psychological, emotional, or physical, unmet needs drive their actions and decisions to purchase a product or service. These needs become the primary reason for purchasing, and brands must identify and address these unmet needs with relevant content and offerings.
Why is it crucial for a business to comprehend unmet needs?
Brands need to develop products or services that cater to those needs, differentiating them from competitors. It involves using market analysis to collect data about potential and current customers, which can inform brand messaging or product development, ensuring sustained business growth.
How can customer feedback be utilized to discover unmet needs?
Customer feedback can be gathered through online surveys, social media interactions, in-person interviews, and focus groups. Analyzing this feedback allows brands to understand customer preferences, pain points, and expectations, enabling them to serve their customers better by meeting and exceeding their needs.
What are the common types of unmet needs?
They can be categorized into various types, including basic needs (like food and shelter), safety, belonging and love, self-esteem, self-actualization, and functional, social, emotional, mental, spiritual, creative, hedonic, nutritional, environmental, economic, and political needs. Brands must identify and address these needs to convert potential customers into paying ones.
How can a brand respond effectively to customer unmet needs?
Brands can respond by being sincere, listening actively, responding promptly, being flexible, and offering solutions that address the customers’ problems. Ensuring that interactions and solutions are genuine and customer-centric is critical.
