Satisfying Customer Needs Equals Organisational Success

According to Nunes, Yardley and Spelman (2015) approximately one third of business growth leaders have achieved their growth through appealing to the needs arising from changing consumer behaviour. Such organisations view the disruptions caused by changing consumer behaviour as an opportunity to align their business with such needs. This organisational mind set of embracing change allows these organisations to provide quick innovative responses to these needs, greatly outsmarting their competitors.

Customers vary in their needs and in the monetary value that they offer an organisation. The effective management of customer relationships takes into account the different needs of a customer base, and the products and services that satisfy their core requirements. Such products and services are more likely to be deliberated for acquisition, present higher sales and retention rates, and offer a higher predisposition to pay from customers resulting in higher profit margins.

The extent to which a customer finds a service provider’s product or service to be applicable to their needs influences the level of relevance the product or service holds in the customer’s mind. According to the Ninth Annual survey of Community Bank Executives (2002) by Grant Thornton, 86% of community bank executives intended to offer new products and services to their existing and potential customers. This indicates high levels of innovation and enthusiasm, however such organisations are typically interested in attempting to sell their customers more of the products and services that they yield. This goods-dominant logic is contrasted by a recent focus on customer-centricity and value creation.

Customer choice is vital for acquisition success. In support of customer-centricity, a customer will not be motivated to purchase a product or service if they do not have a need for it, regardless of how attractive the product or service is. A customer will only purchase a product or service if it is the best choice when compared to their requirements at that given time.

Customer information can be used to provide highly personalised and customised products to meet the customer’s precise needs, and innovative products and services that are aligned with how a customer perceives value allows an organisation to create offerings that are outside of their current comfort boundaries.