Customer Needs Assessment

Written by Dave Lavinsky

Customer Needs Assessment from Growthink

Below you will learn the keys to conducting a customer needs assessment.

What Is a Customer Needs Assessment?

A customer needs analysis or assessment is a process through which you gain a detailed understanding of the precise wants and needs of your current and/or prospective customers. This allows you to understand whether a market exists for current/future products and services and how to best attract your target audience or customer base.

How to Conduct a Customer Needs Assessment

In order to successfully serve customers, businesses must have an acute understanding of customers’ needs. Through primary and/or secondary market research, you can uncover the precise customer needs, how these needs are currently being fulfilled, and what is required to improve your customer satisfaction and the overall experience for your customers.

1. Define Your Target Market

Start by defining exactly which customers the company is serving. This requires specificity. For instance, rather than saying that a company serves small businesses, it may be more appropriate to identify and assess its more precise market, perhaps, small businesses with 5-25 employees in large metropolitan areas.

2. Identify Your Customer Segments

Once you have defined your target market, it’s time to segment your customers. This means grouping them together based on shared characteristics, which can include demographics (age, gender, income, etc.), psychographics (personality, values, attitudes, interests, and lifestyles), geographic (location), or behavior (purchasing patterns, usage, loyalty, etc.).

Assess the customers’ needs by answering questions such as:

  • What is the average revenues/income of these customers?
  • Where are these customers geographically based?
  • What products or services are these customers currently purchasing to fulfill their needs?
  • What factors drive the decision-making of these customers (e.g., price, service, reliability)?
  • How do these customers make purchase decisions (e.g., multiple decision-makers, multiple bids)?
  • What is the customer journey from awareness to purchase?
  • What are the specific customer needs that our products/services could address?
  • How satisfied are these customers with their current solutions?
  • What is our company’s competitive position within this market?

3. Conduct Primary Research

Now that you have a good idea of who your customers are and what they want/need, it’s time to start conducting primary research. This research will help you to validate your assumptions about the market and uncover any unmet customer needs that you may be able to address.

There are a number of ways to conduct primary research, but some common methods include customer need surveys (online, mail, in-person), interviews (telephone, in-person), focus groups, a user needs assessment and ethnographic studies.

Conducting customer interviews is perhaps the best way to uncover detailed information about customers’ needs. However, customer surveys, focus groups, and/or market analysis can also provide valuable insights.

4. Conduct Secondary Research

In addition to primary research, it’s also important to conduct secondary research. This type of market research will help to provide context for your primary research findings and can be used to support your hypotheses about the market.

Secondary research can be conducted in a number of ways, but some common methods include desk research, online research, and interviews with industry experts.

Need Help with Market Research?

With Growthink’s Expert Market Research service, you will get solid market research to give lenders and investors confidence in your market opportunity, your competitive advantage, and your financial projections. Click here to have our team craft your market research to help ensure your success.

5. Analyze Your Findings

Once you have collected and analyzed your data, it’s time to start making sense of it all. This is where you will want to look for trends and patterns in the data that can help you to understand your customers’ needs.

6. Develop Recommendations

Based on your customer needs analysis, you should develop recommendations for how the company can better serve its customers. These recommendations should be specific and actionable, and they should be based on a thorough understanding of the data.

7. Implement Your Recommendations

The final step is to put your recommendations into action. This may require making changes to your products or services, your marketing strategy, your sales process, or the way you deliver customer service. Whatever changes you make, be sure to monitor the results so that you can continue to improve the customer experience.

Conducting a customer needs assessment is an important first step in understanding your customers and ensuring that you are able to meet their needs. By taking the time to understand your customers, you can develop better products and services, improve your marketing and sales efforts, and deliver a better overall customer experience.

By truly understanding customer needs and brand perception, you can better assess the feasibility of a new business opportunity and/or modify it as needed, and create action plans that maximize the probability of market success.

Need Help with Your Customer Needs Assessment?

Would you like Growthink to provide an assessment of your customers’ needs for you? If so, please contact us below.

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