Why It's Important To Understand Customer Needs

Philip Cleave
November 23, 2022
Photo highlighting the importance of better understanding your customer needs.

One of the most important factors for business success, is the ability to address customer needs. Yet, you’ll only be able to do that effectively if you can identify and understand those needs and be able to consistently put the needs of your customers first with a customer-centric approach.

In fact, studies reveal that those organizations that are truly customer-centric can become up to 60% more profitable than their competitors. But this shouldn’t be hard to appreciate, considering that when you really understand what your customers want, you’re better able to tailor nearly every aspect of your business towards them.

Benefits of better understanding customer needs

When it comes to outperforming your competitors, there are three key areas where really understanding what your customers want pays dividends.

It helps you produce better products and services

Consumer research helps you to better understand the reasons and motives for customer actions.

So, when you’re regularly running consumer surveys to get this feedback, it makes it easier to create products that better meet the needs and requirements of your audience. And this applies both to your existing products and services and any new ones that you’re looking to build.

Your service is smoother and more effective

No matter how simple your product or service, there will be times when your customers need your support.

However, when you’ve already identified and fully understand their needs, supporting those customers is much simpler and faster.

You’ll keep your support requests to a minimum

When you better understand your customers, the products you design better match their needs and requirements, helping to reduce the overall volume of support requests you receive.

What customer requirements should you be meeting?

Your exact customer needs will vary depending on the type of products or services you produce. But generally, your key customer needs can be broken down into those that apply to products and those that are more relevant to services.

Key customer needs for products

User experience

The overall experience of customers using your product or service is generally referred to as your user experience.

Consequently, for your products to be considered useful, they need to be intuitive and user-friendly.


Similarly, to ease of use, customers need good product functionality in order to help them solve specific user needs.

So, your product needs to be delivering the required value to help them with this.


Ease of operation and convenience is also important, meaning that your product needs to be effective and efficient in meeting your customer needs.


Your product’s design must also appeal to your customers. So, you need a slick and efficient design that will excite them.


If you’re to satisfy all your customer needs and requirements, your product needs to be reliable, efficient, high performing and compatible with other tools they need to use.


Every customer is unique, and so is their budget. And a small company is unlikely to have the same level of available budget as a larger one.

Consequently, it’s important that you know where the core of your customer audience lies, so you can price your products fairly to accommodate them.

Key customer needs for services


Whoever they’re interacting with, whether it’s your sales, marketing or support teams, customers expect a certain level of empathy from you.

It’s also worth noting that not every customer is likely to be using your services for the same purpose or at the same level. So, you need to put yourselves in the shoes of each customer and address their concerns in a calm and timely manner, whatever that issue may be.

Remember a bad review on Facebook, Twitter, or Instagram can quickly travel and potentially harm your reputation and revenue. So, you must always try to be empathetic and maintain a consistent level of service.


Customers appreciate and expect organizations to be transparent, even if that means accepting their faults or shortcomings.

To gain and maintain their trust, always try to be transparent and honest about any changes to your prices, services, policies and more. If you can do this your customers are more likely to be brand loyal and stay with you for longer.


When people think of fairness in business, many people focus on pricing only.

Ideally this needs to extend into a wider number of areas including your service, benefits, company policy and more.

Customers put their trust in you when they choose to subscribe to your services. So, you need to do all you can in terms of fairness to maintain that trust.


If a customer is to invest in you, you need to be able to offer them plenty of choice.

During the purchase process, encourage and excite them with the variety, range of subscription plans and payment options you can offer. They will appreciate your brand and will become more active promoters for your organization.

How to better meet your customer needs

Having identified some of the key customer needs you ought to be meeting, you’ll want to know the best methods to help you to meet your own customer requirements.

We’ve outlined some of the key areas you need to be looking at to help you this below.

Create buyer personas

Before you do anything else, you need to better understand exactly who your customers are.

Crafting buyer personas, which are fictional descriptions of your ideal customer, based on research and your current customer base can really help with this. They work by providing a description of the ideal type of people your business appeals to, including their likely age, income, location, hobbies and more.

Once you have these personas it makes it much easier to think about their specific needs and tailor your products and services towards them.

Collect customer feedback

If you’re to better meet your customer needs, you also need to be getting feedback from them.

Most customers will be keen to give you feedback if you ask for it. And they are the best source of information in terms of helping you to produce great products and services and improve your customer experience.

Consider running regular customer satisfaction and other types of customer surveys, to really understand your customers’ perception and satisfaction with your products and services.

Some of the world’s biggest global brands have become market leaders thanks to their persistence in collecting customer feedback and doing everything they can to improve their customer experience.

Act on customer feedback

Having surveyed your customers and collected their feedback, you now need to take positive action with these insights you’ve gained.

This can be achieved a number of ways, from using customer feedback to better understand and tweak your buying personas, to refining your products and services or developing new policies to better meet your audiences’ needs.

Keep track of your competitors

Your competitors’ brands help influence your customers’ expectations, as well as the way they react and make purchases.

So, you need to be monitoring them closely to see what new initiatives they are launching, how they are improving their products, service and more.

Conducting regular market research should help you to gather the vital information you need to keep up to date with this.

Document all your customer needs

Whatever frameworks, systems and touchpoints you have in place for finding out more about your customer needs, you need to be circulating and sharing this information effectively with other departments in your organization.

Consequently, when you’re documenting and sharing information throughout your organization, all your key departments from sales and marketing to support and product development are able to devise strategies for better meeting customer needs.

Concluding thoughts

Having read through our blog, we hope you will have a fresh appreciation of your customer needs.

While many businesses may feel that they’re already adequately meeting their customer needs, it’s worth noting that you’ll only be able to truly deliver for your customers when you totally understand their needs. And to do this, you will have to have steps in place to identify these needs, be able to act on them and be creating the experiences your customers want to see.

If you can do this, you’ll be delivering the more customer-centric approach your business needs for greater success.

Generate the experiences your customers want to see

Feedback’s the key to better understanding and meeting your customers’ needs and delivering experiences that excite them. But you’ll only achieve the best results with the right survey tools.

Get started and create your first survey

If you would like more information then please get in touch.