Do You Know Your Customer's Real Problems?

Why is it that once you roll out a new product, customers don't use it? Or a new service that you developed specifically based on customer feedback, yet it languishes with low adoption rates? It's a struggle that organizations deal with almost on a daily basis and often try to tackle with anything they can, whether it be creating sales team incentives, investing in a big marketing campaign, or extensive training programs. But the problem starts much further upstream in the development process, in the understanding of not customer needs, but problems.

Customer needs are typically captured through traditional channels, such as surveys, direct feedback, field input, and competitor assessments. Organizations examine this information often superficially and jump to presumed solutions to assumed problems. Here's what I mean. In 1990, Maxwell House launched a ready-to-drink coffee. The idea was simple. To create a new, convenient way for customers to enjoy hot coffee instantly, without having to actually make themselves. On the surface, it sounds quite brilliant. However, it was an incredible flop.

The issue was that the product actually didn't address a problem. Because the package wasn't microwavable, customers had to pour the product into a mug before putting it in the microwave and therefore making the process virtually no different than using a coffeemaker. So customers kept making coffee the old-fashioned way.

Maxwell House had examined customer needs, got feedback about products, flavor preferences, and coffee drinking habits. However, they simply collected a myriad of data points and information but failed to identify the real problems. What we mean by real problems is obstacles, concerns, frustrations, and difficulties - both identified and unidentified by the customer. To determine real problems, organizations need to instead examine and map the three core aspects of when customers are interacting or utilizing their products or services. Using a 4-square grid, outline the following:

Square 1) Utilization Context - This is all about the environment. Tactically speaking, when is it used? How it is used? What other tools/elements/components are required to use it? How many steps does it take to utilize it? What environments is it used in?

Square 2) Rationally-Driven Objectives - This is about logical purpose. This focuses on utility. Why is it used? What purposes does it serve for the customer? What other substitutes are available? When and why are substitutes chosen?

Square 3) Emotionally-Driven Perceptions - This focuses on less-rational concepts. Is the product or service something that has or can have prestige? Does it have a negative connotation? Is it a transaction or an investment? Does it require a lot of education to understand? Does the customer have to change their behavior to utilize? Is it familiar or foreign? Does it require a lot of thinking or auto-pilot?

Once you've mapped these elements out, it's now time to define the perceived problems.

Square 4) Perceived Problems - This is where you take the elements identified from the other three squares and start discussing obstacles, opportunities, and gaps. Drawing from each square, you can create a list of problems that can then be categorized, sorted, and prioritized. In this exercise, no problem is too small or insignificant - the goal is to create a master list of problems to then work through.

By focusing on and defining problems, the team can then brainstorm and map a wide variety of approaches and options to solve the problem. It flips the discussion from tactical features to strategic solutions.

This process can be used on both existing products and services or identifying new offerings. The principle to keep in mind is that customers don't want your product or service - they want its solution. The benefits they receive from it, whether positive outcomes or even the avoidance of hassle, pain, and frustration. By understanding the customer's context, their logical objectives, and their emotionally driven perceptions, it will provide you a complete picture of the opportunities you have to create a product or service they'll truly need and use.

Author Bio

Andrea's 22-year, field-tested background provides unique, practical approaches to creating more efficient, more competitive, customer-centric organizations. A 4x ADDY award-winner, she began her career at a tech start-up and led the strategic sales, marketing, and customer engagement efforts at two global industrial manufacturers. She now leads a management and communications consultancy, dedicated to helping organizations transform their organizational cultures from "internally-focused" to "customer-centric".

In addition to writing and consulting, Andrea speaks to leaders and industry organizations around the world on how to craft effective customer-centric organizations. Connect with Andrea to access information on her books, keynoting, training, or consulting. More information is also available on www.pragmadik.com or www.thecustomermission.com.