Connecting with Our Customers

Building on our article “Defining Our Customers’ Needs and Expectations,” marketing is a way to understand and satisfy customers. Once we understand the basic motivations of our customers or target market, we can begin to satisfy their:

• Needs. These are fundamental requirements such as food, air, clothing and shelter. Beyond physical requirements, people also need recreation, education, entertainment and a place in the community or social status.
• Wants. These are needs directed toward specific things that could satisfy them. We need food, for example, but on a special occasion we may want to eat at a restaurant instead of at home.
• Demands. These arise when people want a specific product and have both the willingness and money to pay for it. Demand takes different forms: latent demand is a strong need not met by current offerings; irregular demand varies by season, day or hour.

Marketing focuses primarily on customer needs because they drive purchase decisions. These needs can be divided into:

• Stated Needs: What the customer says they want—for example, “I need window sealant for the rainy season.”
• Real Needs: What the customer actually needs: a better-waterproofed house without leaks during the rainy season.
• Unstated Needs: Requirements the customer does not mention, such as an easy way to eliminate leaks.
• Delight Needs: A desire for luxuries beyond basic needs.
• Secret Needs: Needs a customer is reluctant to admit. For example, someone may need a certain social status but feel uncomfortable acknowledging its importance.

A marketing orientation helps determine which need drives customer demand. If a hardware-store salesperson responds only to “I need waterproofing material” without exploring the real need—“My house needs better protection this rainy season”—they may miss the opportunity to sell waterproofing services and build a customer relationship.

When an organization meets customer needs and exceeds expectations, satisfaction increases. Loyalty follows, with a significant effect on profits.

How Do We Satisfy Customer Needs?

Successful companies adapt their offerings to fit those needs. Offerings may take different forms:

• Goods: Physical offerings such as food, clothing and housing.
• Services. Maintenance and repairs, travel and professional services, such as those provided by accountants, lawyers and consultants.
• People: Artists, musicians and high-profile individuals.
• Ideas: Concepts such as “donate blood” or “switch your pension fund,” reflecting an important value or social need.
• Information: Produced, packaged and distributed by schools, publishers, website designers and other marketing professionals.

Any organization that develops and offers one or more of these products engages in marketing.

Are you connected with your customer?