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Understanding customers and their needs
Kishore C.S. (June 2003)
What do customers want? and when do customers
spend money?
Changing economic times have made it tough for
business organizations to get profits. Everyone says it is tough to get
business. Why is it so?
Is it that people don't have money? Yes, to
some extent people who lost earning and don't have income are spending less
money.
But still some businesses are doing good.
Though I am not an expert, I have some thoughts to
share.
1. Customers spend when they realize value
of their spending
Customers will spend money when they feel they are
getting their money's worth. Money's worth cannot always be quantified. Lot of times
customer satisfaction can be linked to happiness and emotional aspects.
When we go out to eat and spend money, we are not
measuring Return on Investment. We feel happy when we eat out once in a
while.
And I sometimes feel when it comes to spending
money, people will spend even if it is costly as long as it means their other
needs.
2. Customers want to feel they have done a
smart thing
Customers want to be known for their intelligence
and smartness.
Imagine you bought an item for 1000 bucks and
after you made the purchase you find that you can get the same one for much
cheaper price. Customers want to take pride in their purchasing
decisions.
It applies not only to the money they paid, but
the brand and company or store from where they purchased it. You will always
notice when some one acquires a new item, they are eager to share how smart
the purchase was made. I have done that and every one does it. It is natural
for us.
3. Customers look for value
Customers not only look for short term value but a
long term value.
They look for good service also. Customers like to
be associated with a business that is growing. Customers who feel happy tell
others.
4. Customers want to grow and improve
their life
Customers will spend money on things that makes
them feel that they are making improvements in their life. They will spend
money on items even if they are costly.
Someone may buy a new car even in tough economic
times because he has been thinking about it for a long time and saved money
to get his need fulfilled.
Anything that is going help customers be
successful and grow is always consider ed worthy of the money spent.
What do these things mean?
If you are operating a business? do some
reflection.
What items do people buy from you? Why? What is
the value they are getting?
What items are you not able to sell?
Either a small business or enterprise it is always important to keep thinking on a continuous basis what is the the value the business is providing to customers. Focusing on value to customers it is easier to convince customers on how to adopt. As long as customers are not convinced about this fact, it is not possible to make a sale. To make customers realize the value lot of times it is necessary to do various other things - Give a preview of the product I know this is a big topic to discuss and there is lot of literature on the same. But focusing on these simple aspects is essence of customer needs and attracting and retaining customers is what I wanted to convey. Next time you feel happy with a purchase you made, you can realize what I said is true. |