Photo by Clem Onojegh
For a business to succeed, now more than ever, it is crucial to be able to identify the needs of your prospects and/or customer base. This is what we call the Customer Discovery Challenge and consists of knowing the answers to the next questions:
1. What is most important to your customers in transacting business with your company?
2. Compared to what your competition offers, what makes your products or services unique or more valuable to your customers?
3. What are the most common needs that your customers share?
4. What are the top problems that you solve for your customers?
5. What opportunities are you creating for your customers when they purchase your products or services?
6. What are your customers’ decision-making processes (meaning, what issues do they consider before they acquire products or services from you or from a competitor)?
7. Why do your customers value your products and/or services?
8. How do your customers find out about your products and/or services?
9. What influence does price play in your customers’ decision to acquire products or services from you?
To discover the answers, remember it is always about the customer; and about how exceptional is the experience we are able to deliver. To do so, you need to reveal the following about customers:
1. Pain points/challenges: Except in the healthcare (and a few other) industries, “customer pain” does not refer to a true physical pain but refers instead to a problem or challenge that must be fixed. What pain can you resolve for your customers?
2. Opportunities: Does your product open doors for your customers or offer them the ability to further grow their businesses? Are you creating an opportunity for them to improve their lives? What are you helping them do better? How can you move up the value chain?
3. Location: Is your business located in a place that is convenient for your customers or makes sense for their lifestyle? Is your business accessible to them? Sometimes businesses open a storefront because they got a really good deal on the rent or because it’s the only location they can afford. If your customers cannot find you, whether you are on the street or in the virtual community on the Internet, then it does not matter how targeted your products and services are.
4. Behavior and decision-making processes: What behaviors or habits influence your customers’ purchasing process? Do your customers need specific information before they make a decision? Do they conduct a lot of research before they purchase your product or service, or is your product or service an impulse purchase? Is timing a factor? Who is involved in the purchase decision? Do you know who their customers are?
5. Spending patterns: Do certain times of year influence your customers’ spending patterns? Does a lifestyle change – such as getting married or having a baby – influence their decision?
6. Price sensitivity: How much does price influence your customers’ decision? How closely is their perception of the value of your product linked to the price? You can price too high or too low, so you need to be careful in answering this question. What are the trade-offs between price, features, and performance? How much are they willing to pay?
Once you are able to overcome the Customer Discovery Challenge you will be able to connect with them in a better way.
Although this is only the beginning, it is the foundation of everything.
“The beginning is the most important part of the work.”
― Plato, The Republic
