Identifying and Satisfying Customer Needs
Business: Cambridge International GCSE (2027 Exams), topic 3.1.2
Identifying and Satisfying Customer Needs
A person becomes a customer once a product or service has been sold to them. The customer becomes a consumer after they use a product. A business should identify the needs of potential customers and it should adapt to the changing needs of existing customers.
Customers will buy it
- If a firm is identifying and meeting customers' needs then it is more likely that they will buy a product or service.
Market-driven
- Being market-driven rather than product-driven means being identifying customers’ needs and then fulfilling them. This can:
- Increase sales.
- Improve current products and customer satisfaction.
Product-driven
- Product-driven means a business focuses on creating and improving a product first.
- Expecting that customers will want it because of its quality or features, rather than tailoring it to specific customer needs.
- For example, Apple is product-driven.
- They design innovative devices like the iPhone, focusing on cutting-edge features, assuming customers will be attracted to the product itself.
Loyalty, relationships and needs
- Businesses encourage repeat purchases by offering rewards, excellent service, or loyalty programs.
- Businesses create strong relationships with customers by personalising interactions and offering good customer service.
- Successful businesses predict changes in customer behaviour or trends and adapt before competitors.
Test yourself on Identifying and Satisfying Customer Needs
LEGO Ideas is an online community where members can submit their own ideas for new sets. These are voted on by other members and reviewed by LEGO. Each year an idea is comissioned by LEGO to be created and sold worldwide. This is an example of a business being what?
What does someone in the population become when they buy a product or service?