Content of this unit
Understanding the Customers
Check out this video to learn more about some of the techniques you can use to find what your customers' needs and wants are:
The key to a successful product, service and/or business is to understand what your customers want and give them what they want in such a way that it is profitable for you. One of the biggest mistakes you can make is to think you know what your customers want or assume they will buy your product or service because they like it as much as you do. The most expensive mistake you can make is NOT to ask your (potential) customers.
When launching a new (or improved) product or service proper market analysis and a good understanding of the needs of your customer is key. This is independent of the fact whether you are a circular business or need, it is all about understanding the cultural, social and economic context in which you will be operating.
In short, what you need to find out is if your potential customers and target group: Will they like the product? Will they buy it? How much will they pay? How much will they buy? What will trigger their purchase?
Once you understand the customers, you can finetune and twitch the product or service idea, you must adapt it even better to needs of the competition (and better than the competition).
Getting to know your (potential) customers used to be an expensive exercise, with the only affordable alternative asking your own relationships, family, friends of friends (or even got out on the street and ask around) about their needs and demands and their perception of your idea, product or service. Extensive and conventual customer market research is still expensive and your relations are a good option always but there are now, thanks to technology and internet more (and inexpensive) ways to go about it, such as internet search for reports, trends, analysis etc., polls on Linkedin, Facebook, Instagram, or even through Whatsapp, but also you can reach collaboration agreements with educational institutions and have students conduct the research as part of their training/education.
Conducting your own research will be much more focused and aligned with your needs, but will require some time, using the secondary data from reports from associations, governments, research bodies, etc. is mostly free and easy to get (and less time consuming). It is your decision to find the right balance between both.
Have a look at this interesting video on understanding are your customers, how to reach them and how to convince them BE your customer:
The key to a successful product, service and/or business is to understand what your customers want and give them what they want in such a way that it is profitable for you. One of the biggest mistakes you can make is to think you know what your customers want or assume they will buy your product or service because they like it as much as you do. The most expensive mistake you can make is NOT to ask your (potential) customers.
When launching a new (or improved) product or service proper market analysis and a good understanding of the needs of your customer is key. This is independent of the fact whether you are a circular business or need, it is all about understanding the cultural, social and economic context in which you will be operating.
In short, what you need to find out is if your potential customers and target group: Will they like the product? Will they buy it? How much will they pay? How much will they buy? What will trigger their purchase?
Once you understand the customers, you can finetune and twitch the product or service idea, you must adapt it even better to needs of the competition (and better than the competition).
Getting to know your (potential) customers used to be an expensive exercise, with the only affordable alternative asking your own relationships, family, friends of friends (or even got out on the street and ask around) about their needs and demands and their perception of your idea, product or service. Extensive and conventual customer market research is still expensive and your relations are a good option always but there are now, thanks to technology and internet more (and inexpensive) ways to go about it, such as internet search for reports, trends, analysis etc., polls on Linkedin, Facebook, Instagram, or even through Whatsapp, but also you can reach collaboration agreements with educational institutions and have students conduct the research as part of their training/education.
Conducting your own research will be much more focused and aligned with your needs, but will require some time, using the secondary data from reports from associations, governments, research bodies, etc. is mostly free and easy to get (and less time consuming). It is your decision to find the right balance between both.
Have a look at this interesting video on understanding are your customers, how to reach them and how to convince them BE your customer:
