Customer needs – what types of customers and how to meet them

Customer satisfaction is key to the success of any business. Among other things, it determines repeat purchases, increased sales, consumer loyalty to the brand and positive reviews and recommendations of products or services. To satisfy your customers, however, you must first understand their needs and expectations. From this article you will learn:

• What are customer needs?
• What are the types of customer needs?
• How to identify customer needs?
• How to meet customer needs?
• What are the most popular customer expectations?

Customer needs are all the requirements, expectations and desires that a consumer has for a product he wants to purchase or a service he wants to use. The customer’s needs thus determine his purchasing decisions. If his or her expectations are met, there is a much greater chance that he or she will make a positive purchasing decision.

Customer needs refer to identified deficiencies, expectations and preferences that the customer has in terms of products or services. These are the factors that determine the customer’s motivations for making purchasing decisions and influence their satisfaction and loyalty to a particular company or brand.

Definition of customer needs

The modern approach to customer needs assumes that the customer is not a one-dimensional entity, but is made up of a variety of aspects. This can be broken down into three levels: basic needs, psychological needs and social needs.

Understanding customer needs and meeting them, however, is not just about making more sales – it is only the final step in meeting consumer demands. Identifying customer expectations also makes it possible to optimise your offer and improve your products or services. Knowing exactly what the consumer wants, we can introduce changes (e.g. in product functionality) that will meet their individual needs. Thanks to this, the customer will see that we care about his or her satisfaction. This in turn will be helpful in gaining their trust and building loyalty, which will ultimately lead to the creation of valuable, long-term relationships. A consumer who is satisfied with a product, service or personalised offer will undoubtedly recommend our brand to others. It will therefore arouse interest among other members of the target group, who will also want to interact with it. Positive feedback and recommendations will thus allow you to stand out from the competition, which will attract further potential customers.

Every customer is different, which means that everyone will have their own individual needs and expectations. However, the types of consumer needs can be categorised into three main groups: socio-emotional needs, product needs and needs, related to customer service.

Socio-emotional needs

Socio-emotional customer needs combine the emotional and social aspects of the shopping experience. They include needs such as:

• The need to belong – consumers often want to be part of a particular group or community. Responding to the need to belong can be through, for example, community forums, closed, dedicated groups on social networks or loyalty programmes.
• Need for recognition – customers want their choices and decisions to be noticed and appreciated. Loyalty programmes or loyalty cards that, for example, give the consumer a discount on products and services, in return for regular purchases, would be a good solution in this case.
• The need to be heard – consumers want to see that their opinion is important and matters. For this reason, it is worth enabling customers to share their opinions, for example through social media communication or the implementation of e-store reviews.

Product needs

Product needs are directly related to those product features and attributes that customers consider important. These include such elements as:

• Functionality – when using an offer, the customer expects a particular product or service to provide a comprehensive answer to their needs. For this reason, consumers value multifunctional products that stand out in the market.
• Price – should be appropriate to the quality of the product and its functionality. If for some reason the price is higher, it is worth informing the customer of the reason for this – e.g. the high quality raw materials from which the product was made – this will increase the chances of buying it.
• Design – the appearance of a product is of great importance to consumers. Good design – of both the product and its packaging – can increase the attractiveness of the product, make it easier to use and have a positive impact on the customer’s overall buying experience.
• Reliability – customers expect their chosen products to be fully operational. Before selling, it is therefore worth making sure that everything works as it should. A proper complaints process and support (service) should also be taken care of.
• Compatibility – for many consumers, the compatibility of a product with other devices or systems is also important. This is particularly important in the context of electronics.

Customer service needs

Needs, related to customer service, refer to consumers’ expectations regarding interaction with the company and customer service representatives. These needs include:

• Empathy – consumers expect company representatives to be empathetic to them, courteous and willing to help them solve their problems.
• Equality – this primarily refers to fair prices, clear contract terms, adequate compensation in case of errors or problems, and equality in the context of the customer service process.
• Control – consumers want to be kept informed of changes, have choice and make informed purchasing decisions.
• Options – consumers value choice. For this reason, it makes sense to provide them with a wide range of products or services, different forms of sales, different payment methods or different delivery methods.

Consider the following steps when planning your activities:

Data analysis

Analysing customer data is the first step to understanding customer needs and expectations. Customer data can come from various sources, such as CRM (Customer Relationship Management) systems, purchase history, reviews, website interactions, social media or customer satisfaction surveys.

Analysis of the data, which relates to consumers, will be helpful in understanding what products or services are most popular, what features are most important to customers and what consumer concerns the offer should address. For example, analysis of purchasing data can show which products are most frequently purchased together, which will be a clue, useful when creating related product offers (cross-selling).

Competitor analysis

Competitor analysis involves checking the activities of competing companies, i.e. those operating in the same industry. When analysing the competition, consider aspects such as:

• Product/service offering – by checking what your competitors have to offer, you will identify what products and services are already available on the market and what customer needs they address. Consider the quality of the products, their unique features, innovations and the additional benefits they provide to customers.
• Prices – by analysing your prices, you will verify whether they are competitive with your offer. You will also find out whether lower prices, which are more attractive to customers, are not inadvertently backed up by lower product quality.
• Marketing communication – analysing the advertising, structure and content of websites and social media posts can provide you with valuable information on industry trends, the communication preferences of your target audience and any gaps in this area.
• Customer reviews – reviewing product or service feedback and reviews, as well as market research, will allow you to understand how well your competitors are meeting your customers’ needs.

Keyword analysis

Keywords are terms or phrases entered by users on search engines. They reflect their interests and needs. Their analysis can therefore provide valuable information about what your consumers are looking for and expecting. Here are some aspects to pay particular attention to:

• Product and service queries – keyword analysis allows you to identify, among other things, what queries, related to your product or service, are entered by users. These may include features, functions or user instructions. By collecting such information, you will understand what your consumers really need and what aspects of your product or service really interest them.
• Problems and challenges – keyword analysis also enables you to identify any problems or challenges your customers are facing. Users often look online for solutions to their problems. By analysing keywords, you will therefore gain the chance to formulate an offer that meets the needs of your consumers.
• Trends – through keyword analysis, you can also identify new trends in the industry. Searches related to new technologies or styling trends, for example, will show you new opportunities and current customer needs, which you will be able to respond to in your offer.
• Local queries – keyword analysis, taking into account local queries, can be particularly important for smaller businesses operating in the local market. It will provide valuable information on local consumer needs, preferences or interests.

Gathering feedback

Gathering feedback from customers is key to understanding their needs, expectations and experiences with the products or services offered. Feedback can come from a variety of sources, such as surveys, ratings and reviews, feedback on social networks or direct contact with the customer. Analysis of the information collected will allow you to identify the strengths and weaknesses of your offer and adapt it to the real needs of your consumers.

Feedback from customer service staff is also equally important. They are close to consumers and often interact directly with them. Your employees can therefore provide you with valuable information about consumers’ problems, challenges and needs, allowing you to successfully meet their expectations.

Customer journey mapping

Customer Journey Mapping is the process of analysing the path a customer takes through the purchasing process (from the first contact with a company to the end of the interaction). Customer Journey analysis, in turn, will allow you to better understand the customer experience, their needs, expectations and emotions. Customer Journey mapping involves several steps. These are:

• Identifying the stages of the journey – the first step is to identify the different stages that the customer goes through when interacting with the company. These will include brand awareness, information seeking, customer service, purchase, product use and repeat purchases. It is worth remembering that at each stage the customer has different needs and expectations.
• Data collection – next, you need to collect data, such as market research, customer data, online behaviour or consumer feedback. It is also worth taking into account the internal perspective of your customer service staff.
• Create a journey map – based on the data and perspectives collected, create a customer journey map. This is a visual representation of the different stages of their journey, taking into account the consumer’s actions, emotions, expectations and the interactions they have with the brand at each stage. The journey map will enable you to visualise the overall customer perspective.
• Identifying critical points and opportunities for optimisation – once the customer journey map has been created, it is time to analyse it. It allows you to identify critical points, i.e. those moments when the customer may experience negative emotions or encounter various difficulties. At the same time, you may also find opportunities to optimise the customer experience. For example, you may need to introduce new features, improve customer service or provide more personalised solutions.
• Optimise and monitor – based on your customer journey map analysis, take action to improve the consumer experience. Be sure to monitor the changes made and track customer feedback. This will ensure that your actions are having the desired effect.

To really meet consumer expectations, include elements such as:

Customer needs analysis

Customer needs analysis involves interpreting the data collected when identifying consumer expectations. Properly conducted, this analysis allows, among other things, an understanding of the factors that influence customers’ purchasing decisions. It also makes it possible to segment the target group, i.e. divide customers into groups with similar needs and preferences. On this basis, it is possible to create a personalised product or service offer that meets the specific expectations of a selected segment of the target group. In addition, the analysis of consumer needs provides an opportunity for innovation and improvement. This is because it allows market gaps and trends to be identified and used to create an attractive offer that stands out from the competition.

Acoherent communication strategy

An appropriate communication strategy is an extremely important element that will allow you to effectively meet the needs of your customers. Make sure your message is consistent and personalised. Tailor your communication to the specific, individual characteristics of your consumers. Take into account demographics, purchase preferences and transaction history. When engaging with your customers, use a variety of communication channels, such as social media as part of social media marketing, your website or email marketing.

Essential instructions

Instructions provide customers with specific instructions, information and guidance on how to use the chosen products or services. They should be clear, understandable and easy to digest. Therefore, avoid complicated language. If you use specialised terms in your instructions, explain them. This will ensure that the instructions really serve their purpose and help the customer to use the purchased product or service.

In addition to written instructions, it is a good idea to provide consumers with support from your customer service department. So make sure your employees are competent and have dedicated phone lines, e-mail communication or chat rooms.

Feedback

Feedback and suggestions, both from customers and from your employees, are invaluable as a guide as to which solutions work and which areas need improvement for whatever reason. Feedback can relate to a variety of aspects, such as product functionality, the details of an offer or the level of customer service. Remember not to take any criticism emotionally – use any feedback as an opportunity to meet consumer expectations and improve and develop your business.

Meeting specific needs

Meeting your customers’ needs may seem like a very complex and time-consuming process to you. Although sometimes you really do have to go through one, in some cases it is enough to make good use of the customer needs survey you conducted beforehand. So analyse the data, regarding consumer expectations, and respond to specific guidelines in your actions. For example, if your consumers indicate that they lack educational content so that they can effectively use the product they purchased, focus only on providing them with relevant material.

Don’t take a huge amount of action at once – by doing so, you won’t focus enough attention on the areas that really need improvement. In addition, you won’t get a complete picture of what works and what doesn’t. When responding to your customers’ needs and expectations, lead the changes gradually and systematically check what results they bring.

Excellent customerservice

Excellent customer service is extremely important in terms of meeting customer needs and expectations. Therefore, ensure that your customer service employees are characterised by professionalism. Among other things, appropriate competence, experience and highly developed communication skills are very important. After all, customers often expect patience and assistance in choosing a particular offer. Make sure that they get what they need from your employees.

Customers’ needs and expectations vary greatly. However, among the most popular are:

• Simple solutions – consumers expect simple and intuitive solutions so that they can easily use the products or services they purchase. It is therefore imperative that you consider this aspect when creating your product or service offering.
• Personalisation – customers want your offer to be tailored to their individual preferences, needs and purchase history. Make sure you provide them with personalised recommendations or dedicated offers. This will win the trust of your consumers and earn you a place in their eyes as a brand that cares about their individual needs.
• Value – consumers prefer products and services that actually give them value, and are therefore an effective solution to their problems or a response to their needs. So make sure your products or services have the right functionalities that will be useful to your customers.
• Transparency – customers appreciate businesses that clearly inform them about product prices, terms of service, promotions or competition rules. Therefore, check that your consumers definitely have all the information they need.
• Availability – consumers do not like situations in which they cannot find or buy the product they are interested in (e.g. because it is out of stock). Keep your offers up to date – if you do not have a product in stock, remove it from your offer. This way you will not mislead your consumer. Remember to give the customer a variety of choices. Therefore, if you have a stationary shop, consider extending it with an online shop, through which you will gain the chance to fully satisfy your existing customers and attract new ones.

Do you want to respond effectively to your customers’ needs? Contact us! At Cyrek Digital, we will help you to meet their expectations.