Summary
Why this is important
It is important to know who your customers are and what they need. This will help you to:
- make sure you meet their needs so that they use your products or services;
- plan how to best market or sell your products or services
- develop a customer service policy; or
- review how successful your business is.
Who might do this
You might do this if you are:
- setting up a new business or social enterprise;
- expanding a business or social enterprise;
- changing or adapting the products or services offered by your business or social enterprise; or
- reviewing how successful your business or a social enterprise is.
What it involves
Checking what customers need involves:
- deciding who your existing or potential customers are;
- collecting information on their needs; and
- making sure that your business targets match your customers needs.
Other units this link closely with this
WB2 | Plan how to let your customers know about your products or services |
WB3 | Plan how you will sell your products or services |
WB11 | Decide how you will treat your business customers |
BD4 | Carry out a review of your business |
Links to other standards
If your business grows and develops a management team it may be appropriate to consider the following units from the Management and Leadership Standards.
F4 | Develop & review a framework for marketing |
F9 | Build your organisationu2019s understanding of its market & customers |
F10 | Develop a customer focussed organisation |
What you need to do
- Identify which part of the market, and which kind of customer, needs your business’s products or services.
- Find out what customers like about your business and its products or services.
- Find out about how customers feel about other similar businesses, products or services.
- Use reliable information about what your customers need.
- Get the views of different types of customer.
- Decide if you need to find out any further information and how you will get it.
- Decide if your research has shown that there are opportunities to develop new products or services or approach new groups of customers.
- Review what you have found out and match it with your businesses targets.
What you need to know and understand
Market Research
- How your customers may be divided up (segmented). (For example by:
- age;
- occupation or social class, which is often linked to income (for example, professional, working-class or single-parent family);
- lifestyle or image (for example, caring, sophisticated or adventurous);
- buying habits (for example, always plans carefully, size of order or amount of customer loyalty);
- local neighbourhood or wider regions (for example, international, northern, southern or by postcode); or
- benefits (for example, benefits provided by a café might be a quick snack, a rest during shopping, somewhere to meet, or a takeaway.)
- How you can find out what customers want.
- Where you can get published information and how much it will cost you to get it.
- How to get and use feedback from new and existing customers.
- Why some information is confidential and how you should deal with it.
- How to analyse markets and customer needs.
- Ways of identifying and communicating with customers.
Competitors
- How you can find out what competitors are doing.
Business Focus
- Why it is important to keep your business focused on the needs of your customers and how customer needs can influence the future of a business.
- How to match customer needs to business targets.
Business Planning
- How you can use customer needs in your business planning.