IDENTIFY YOUR CUSTOMER'S NEEDS. MASLOW PYRAMID.
PROBLEM DISCOVERY
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This TIP will help you to better understand what needs / problems your customer may have, the clearer you are about your target, the easier it will be to get it right and improve your solution to maximise your customer's satisfaction! The needs or problems of a customer segment refer to the specific demands that a group of people have in relation to a particular product or service. To illustrate this, here is an example: Let's say you are an entrepreneur who wants to create a mobile online shopping application for people over 60. Your customer segment is those who are not very tech savvy, but who want to shop online easily and securely from the comfort of their own home.
In this case, the needs or problems of your customer segment could include
- Lack of confidence in the security of online payments.
- Difficulties navigating complicated and unintuitive online shopping websites.
- Concerns about the quality and authenticity of products sold online.
- The need for personalised, real-time customer service.
- Need to receive relevant and personalised product recommendations.
As an entrepreneur, your focus on needs would involve addressing these specific demands when designing your online shopping mobile app. You could consider implementing features such as secure online payments, a user-friendly user interface design, product authenticity checks, online and personalised customer support, and relevant and personalised product recommendations. By meeting these specific needs of your customer segment, you increase the chances of success for your business.
Here are some examples of needs or problems that different customer segments may have:
- Working mothers: need flexible and reliable childcare while they are at work.
- Older people: need products and services adapted to their reduced mobility, such as wheelchairs, ramps or personal assistance services.
- People with visual disabilities: need products and services that enable them to access information and technology efficiently, such as screen readers, magnifying glasses or applications with accessible interfaces.
- University students: need affordable and safe accommodation and transport services close to the campus.
- Entrepreneurs and small businesses: need counselling and training services to develop entrepreneurial skills and better manage their businesses.
- Frequent travellers: need products and services that enable them to travel comfortably and safely, such as durable luggage, flight tracking applications and airport shuttle services.
- People concerned about their health: need products and services that enable them to monitor and improve their health, such as fitness tracking apps, organic products and therapy services.
- Parents: need products and services that enable them to care for their children, such as nappies, healthy food, educational toys, among others.
These are just a few examples, but there are a myriad of needs or problems that a customer segment may have, and focusing on meeting those needs can be key to the success of a venture.
PROBLEM DISCOVERY
Problem discovery is the process of identifying and understanding a problem or need that exists in a market or a specific user group. This process is fundamental for entrepreneurs as it allows them to find opportunities to create innovative solutions and satisfy unmet needs in the market. The problem discovery process involves asking questions, observing and listening to users to understand their needs and problems. Some common techniques used in this process include conducting in-depth interviews, observing users in their natural environment, conducting usability tests, and reviewing online comments and reviews.
A practical example of problem discovery is the case of Airbnb. The founders of Airbnb realised that there was an unmet need in the travel market. Many travellers prefer an authentic, local experience rather than staying in conventional hotels. The founders of Airbnb identified this need and created a platform that connects travellers with people who have rooms or houses to rent.
Another example is the case of Slack. Slack's founders discovered that many companies were struggling to find an effective way to communicate and collaborate. They identified the need for a tool that would enable teams to communicate and work more effectively online. They created Slack, an online messaging and collaboration platform that has become a must-have tool for many businesses.
In a nutshell, the problem discovery process is crucial for entrepreneurs seeking to identify business opportunities and create innovative solutions that meet unmet needs in the market.
Problem Discovery is a research approach that focuses on identifying customer problems and needs. It is a key step in the Lean Startup methodology, as it allows entrepreneurs to discover the real problems faced by customers and then design solutions to effectively solve them.
The Problem Discovery process involves talking to clients and asking open and exploratory questions to understand their needs and challenges. Entrepreneurs can use a variety of tools to collect and analyse customer data, including surveys, interviews, focus groups and data analysis.
By understanding customers' problems and needs, entrepreneurs can design solutions that are tailored to market needs and are more effective in solving real problems. Continuous validation of entrepreneurs' hypotheses through customer feedback allows start-ups to iterate and improve their solutions to ensure that they are addressing real customer problems.
Problem Discovery is a fundamental step in lean startup
The problem discovery is a fundamental process in the Lean Startup approach, which focuses on identifying and validating real customer problems and needs before developing and launching a product or service to the market. The problem discovery process involves talking to potential customers, doing market research and gathering information to understand customers' needs and the problems they face.
This information is crucial to develop a product or service that meets a real need and thus avoid wasting time, resources and money on creating something that no one wants or needs.
In addition, problem discovery can also help identify problems or needs that customers may not have recognised or clearly articulated, allowing entrepreneurs to offer innovative solutions that solve problems that have not yet been addressed in the market.
In short, problem discovery is a This is a fundamental step in the Lean Startup approach because it allows entrepreneurs to better understand the real needs and problems of their customers, which in turn helps to create products or services that are truly valuable and relevant to the market.
Why should an entrepreneur know his customers' needs or problems well?
AN ENTREPRENEUR NEEDS TO HAVE A GOOD UNDERSTANDING OF THE NEEDS OR PROBLEMS OF HIS CUSTOMERS FOR SEVERAL REASONS:
- Identify business opportunities: By understanding customers' needs and problems, entrepreneurs can identify business opportunities and develop products or services that meet those needs or solve those problems. This will enable them to create more effective and differentiated solutions, which will give them a competitive advantage in the marketplace.
- Design adapted products and services: By understanding customers' needs and problems, entrepreneurs can design products and services that are tailored to those specific needs and problems. This will allow them to offer more effective and personalised solutions, which will increase customer satisfaction and foster customer loyalty.
- Improve the customer experience: By understanding customer needs and problems, entrepreneurs can improve the customer experience by offering products and services that meet those needs or solve those problems. This will enable them to increase customer satisfaction, enhance their reputation and increase the likelihood of customer loyalty.
- Identify new sales opportunities: By understanding customers' needs and problems, entrepreneurs can identify new sales opportunities, such as complementary products or additional services that they can offer. This will allow them to expand their business and increase their income.
In short, knowing the needs and problems of customers is fundamental for any entrepreneur, as it will allow them to identify business opportunities, design adapted products and services, improve the customer experience and identify new sales opportunities.
How can an entrepreneur understand well the needs or problems of his customer segment?
TO UNDERSTAND THE NEEDS OR PROBLEMS OF CUSTOMERS, AN ENTREPRENEUR CAN TAKE THE FOLLOWING STEPS:
- Market research: Market research can be conducted to find out the needs and problems of customers in the market you want to enter. This can be done through surveys, interviews or analysis of sales data and customer behaviour.
- Competitive analysis: Analysing the competition and their products or services can provide valuable information about customer needs and how to meet them effectively.
- Listening to customers: Entrepreneurs must interact with their customers and listen to their opinions and suggestions to improve their products or services. This can be achieved by conducting surveys, focus groups, interviews, among other strategies.
- Social media monitoring: Social media is an important source of feedback on customer needs and problems. Entrepreneurs can monitor social media conversations to better understand customers' needs and opinions about their product or service.
- User testing: Entrepreneurs can conduct user tests with potential customers to get direct feedback on their product or service. This will allow them to make the necessary improvements and adjustments to meet customer needs.
In short, knowing the needs or problems of customers is fundamental to the success of any venture. Entrepreneurs must conduct thorough research and be open to customer feedback in order to be able to offer products or services that meet their needs and expectations.
THERE ARE MANY EXAMPLES OF START-UPS FAILING TO UNDERSTAND THE NEEDS OR PROBLEMS OF THEIR CUSTOMERS
SOME OF THEM ARE:
- Blockbuster: the movie rental chain failed to understand that customers were looking for a more convenient way to watch movies at home and that renting physical DVDs was not the best option.
- Kodak: the photo company failed to adapt to the transition from physical to digital and did not understand that customers were looking for an easier and faster way to capture and share images.
- Juicero: the cold-squeezed juice company failed to understand that customers were not willing to pay for an expensive juicing machine when they could buy similar juices in a grocery shop.
- Google Glass: augmented reality technology failed to understand that customers were not ready to use devices that made them look like robots, and that they did not want to be filmed without their knowledge.
These examples show the importance of understanding customers' needs and problems for the success of a company.
ARTIFICIAL INTELLIGENCE CAN HELP AN ENTREPRENEUR TO UNDERSTAND THE NEEDS OR PROBLEMS OF HIS CUSTOMERS THROUGH THE FOLLOWING SUGGESTIONS:
- Market research: can provide information and advice on how to carry out appropriate market research to identify the needs and problems of potential customers.
- Data analysis: can help analyse data collected through market research to better understand customer behaviour patterns and trends.
- Evaluation of comments: can help evaluate feedback from existing customers to identify areas for improvement and opportunities to develop new products or services that better meet their needs.
- Identification of trends: can help identify emerging trends in the market and provide guidance on how companies can adjust their strategies to keep up with changing customer needs and wants.
- Creation of customer profiles: can help entrepreneurs create detailed profiles of their ideal customers, which can help to better understand their needs, wants and problems.
In general, artificial intelligence can provide guidance and advice on how entrepreneurs can use various tools and techniques to better understand their customers' needs and problems and develop solutions that meet those needs.
TO DISCOVER UNMET NEEDS AND POTENTIAL BUSINESS OPPORTUNITIES, I RECOMMEND YOU TO FOLLOW THESE STEPS:
- Identify a target market: Choose a specific group of people you want to target with your product or service. For example, you could focus on university students, parents, seniors, etc.
- Make a list of the common needs of that market: Think about the common needs that people in that market have. For example, university students may need tutoring services, solutions to better organise themselves, etc.
- Investigate these needs thoroughly: What are the current limitations in the supply of solutions to these needs? What frustrations do people experience when trying to meet these needs?
- Look at current market trends: Research current trends in the market to identify new and emerging needs. What new technologies, products or services are being developed and how do they affect your target market?
- Listen to your potential customers: Talk to your potential customers and listen to their needs and wants. You can do this through surveys, interviews or focus groups.
- Identifies business opportunities: Use all the information you have gathered to identify business opportunities. Think of innovative solutions to meet the unmet needs you have identified.
Remember that the identification of unmet needs is an ongoing process, so you should always be aware of changes in the market and the needs of your customers.
- Make a "Customer Journey Map" of a specific customer profile, and identify the critical moments in your customer's experience.
- The business world is changing and generating needs, and these needs are opportunities. To go deeper into the sector. Attend business networking to understand and be able to improve our proposal.
MASLOW'S PYRAMID
Maslow's pyramid is a theory of psychology that classifies human needs into five categories, which are organised in a hierarchy. The theory states that human beings have a number of needs that must be satisfied in an orderly fashion. The most basic needs must be met before we can worry about more advanced needs. An entrepreneur can use Maslow's pyramid to better understand the needs of his customers, as this theory helps to identify needs in terms of their relative importance to people.
For example, if an entrepreneur is designing a product or service that meets people's basic needs, such as security or food, he must ensure that his offering meets these needs before worrying about more advanced needs, such as self-esteem or personal fulfilment. Moreover, by understanding the needs of his customers according to Maslow's pyramid, an entrepreneur can design his offer in a way that responds to one or several needs at the same time.
For example, a healthy food service can satisfy the need for security and the need for love and belonging of customers who are looking to eat healthy and share that experience with their family and friends. In a nutshell, Maslow's pyramid can help an entrepreneur to better identify the needs of his customers and to design his offer in a way that responds to those needs effectively.
The Pyramid was formulated by Abraham Maslow in 1943 in his work "A Theroy of Human Motivation" the theory of the so-called Maslow Pyramid as a principle within psychology, but its application to entrepreneurship has far surpassed this discipline in recent years, entering fully into business strategy, mainly in aspects of marketing and human resource management.
The pyramid is a theory of motivation that explains human behaviour and especially that of your customers. It graphically represents our behaviour as individuals according to our needs and shows a set of five levels ordered according to the "stages" that all people go through. Thus, at its base are the basic needs of any individual and as we rise we cover "stages" of security, social aspects, esteem and self-realisation.
Explains where the impulses of human behaviour come from, i.e. why do we do something, or why do we think in a certain way? This can be transferred and applied to your customers and seen from another point of view, why do they buy some products and not others, or why do they buy some brands and not others? By understanding how Maslow's pyramid works, you can learn how your customers behave, why customers buy your products instead of your competitors' products and vice versa.
For example; What differentiates a BMW customer from a Citroën customer, assuming that both have the same purchasing power? The Citroën customer satisfies the "basic" need to get around town as well as the BMW customer, but BMW also satisfies other needs such as social acceptance and self-esteem.
Another example: of how companies use this theory to their advantage is Coca-Cola. In principle, by its nature it would belong to the lowest rung of the pyramid, to quench thirst, however, its advertising and marketing campaigns focus on showing qualities that allow us to enhance friendship and belonging to a group, i.e. qualities that satisfy the third rung of the pyramid.
According to Maslow, human beings tend to satisfy their needs in an upward direction, i.e. we will not buy a product that gives us security or social recognition if we have not first covered our basic needs. Therefore, a company will adapt its product, its message or its communication to that level of need that it believes it can cover and satisfy.
- Basic needs, also called physiological needs: which are inherent to all human beings and necessary for their survival. This group includes breathing, food, clothing, rest, etc.
- Security needs: They provide the order and security required in our lives, both physically (health) and economically (income).
- Social Needs: involves the feeling of belonging to a group such as family, friends, co-workers, partners, etc. It refers to people's need for social acceptance.
- Esteem Needs, also known as Recognition Needs: This "step" includes aspects such as confidence, personal independence, reputation, achievement of goals, dignity and self-respect.
- Self-realisation: considered as the apex of the pyramid that leads to the achievement of full personal success.
The The basic "assumptions" are based on the fact that the unmet needs of your customer influence their behaviour as individuals. Furthermore, the highest needs can be simultaneous with basic needs, although the latter will always take precedence and, finally, the highest needs require a longer period of time to be achieved. People "die" if their basic needs are not covered, and they are "inferior" when the "steps" of integration or self-esteem are not covered, not being able to achieve personal fulfilment. The theory suggests that failure to satisfy a need at one level of the pyramid would prevent advancement to the next stage. On the other hand, the "step" to a higher level is not irreversible, as "regressive forces" or changes can act to force us to descend (the escalation would be brought about by the so-called "forces of growth"). In addition, it must be considered that not all people have the same scale of values so their needs, starting from basic needs, may be different.
Practical examples of application of Maslow's pyramid for entrepreneurs
Here are some practical examples of the application of Maslow's Pyramid for entrepreneurs:
- Satisfying physiological needs: An entrepreneur who wants to sell food and beverages must be sure to offer quality, safe and healthy products that satisfy the hunger, thirst and basic nutritional needs of his or her customers.
- Meeting security needs: an entrepreneur who wants to offer transport, security or insurance services must ensure that his customers feel safe and secure when using his services.
- Meeting social needs: An entrepreneur who wants to start an entertainment or leisure business must ensure that his product or service encourages social interaction and allows his customers to satisfy the need to relate and belong to a group.
- Meeting esteem needs: an entrepreneur who wants to sell luxury products must ensure that his product or service is perceived as exclusive and of high quality, in order to satisfy his customers' need for esteem.
- Satisfying self-fulfilment needs: an entrepreneur who wants to offer coaching or personal development services must ensure that his or her service helps clients to achieve their goals and develop their full potential, to satisfy their need for self-fulfilment.
In general, to apply Maslow's Pyramid, the entrepreneur must know his customer very well and understand his deepest needs, desires and motivations, in order to design products or services that effectively satisfy them.
Types of needs that customers may have and that an entrepreneur can solve:
- Physical needs: such as the need for food, clothing, housing, transport, security and health.
- Emotional needs: such as the need for love, belonging, self-esteem, acceptance, confidence, fun and happiness.
- Cognitive needs: as the need for knowledge, information, learning, skills, creativity and problem solving.
- Social needs: as the need for connection, interaction, communication, collaboration and mutual help.
- Spiritual needs: as the need for meaning, purpose, transcendence, values and beliefs.
- Aesthetic needs: as the need for beauty, harmony, design, style and originality.
- Comfort needs: such as the need for simplification, organisation, efficiency and comfort.
- Status needs: as the need for recognition, prestige, power and esteem.
An entrepreneur can solve these needs by creating products or services that satisfy these needs. For example, an entrepreneur might create a restaurant to meet customers' physical needs for nourishment, a coaching service to meet emotional needs for self-esteem and confidence, an online course to meet cognitive needs for learning, a social networking application to meet social needs for connection and collaboration, a spiritual retreat to meet spiritual needs for meaning and purpose, a clothing shop to meet aesthetic needs for design and style, a task management platform to meet needs for convenience and organisation, and a consulting service to meet customers' needs for status and prestige.
Types of problems that customers may have and that an entrepreneur can solve by creating a business:
- Health problems: Clients may have physical or mental health problems that require specific solutions, such as health care services, pharmaceuticals, alternative therapies, among others.
- Financial problems: Clients may have financial difficulties, such as debt, bad credit or lack of savings, which require solutions such as financial counselling services, loans, financial planning, among others.
- Transport problems: Customers may have transport problems, such as lack of access to vehicles or reliable public transport, which require solutions such as private transport services, carpooling systems, sustainable mobility solutions, among others.
- Housing problems: Clients may have housing problems, such as lack of access to affordable housing or lack of maintenance of their homes, which require solutions such as social housing services, mortgage financing solutions, housing maintenance services, among others.
- Feeding problems: Customers may have food issues, such as lack of access to healthy and affordable food, which require solutions such as fresh food delivery services, prepared food services, innovative food products, among others.
- Education problems: Customers may have education issues, such as lack of access to educational resources, tutoring services, continuing education services, which require solutions such as online education services, customised education programmes, corporate training solutions, among others.
- Security issues: Customers may have security problems, such as insecurity in their neighbourhoods or workplaces, which require solutions such as surveillance systems, private security services, innovative security products, among others.
- Environmental problems: Customers may have environmental problems, such as environmental pollution or lack of access to renewable energy, which require solutions such as renewable energy services, recycling services, green products, among others.
- Leisure problems: Customers may have leisure problems, such as lack of access to leisure or entertainment activities, which require solutions such as online entertainment services, sustainable tourism services, innovative entertainment products, among others.
- Relationship problems: Clients may have personal relationship problems, such as lack of communication or social networking skills, which require solutions such as personal relationship counselling services, social skills development services, innovative social networking products, among others.
In a nutshell, An entrepreneur can solve a wide variety of problems that customers may have, as long as he or she finds an innovative and effective solution that meets the customers' needs and creates value for them.
Differences between the needs of individuals (B2C), businesses (B2B) and governments (B2G)
The needs of individuals, companies and governments may differ depending on their objectives, resources and priorities.
HERE ARE SOME GENERAL DIFFERENCES:
- People's needs (B2C business models): People's needs may be more personal and emotional compared to those of businesses and governments. People may have needs related to food, health care, security, education, entertainment and social belonging, among others.
- Business needs (B2B business models): Companies, on the other hand, have more commercial and financial needs, such as the need to increase sales, reduce costs, improve efficiency, expand into new markets, create innovative products and services, and improve customer satisfaction.
- Government needs (B2G business models): Governments have broader and more diverse needs, including the need to ensure national security, provide public services, promote economic growth, reduce poverty, protect human rights, protect the environment and ensure political and social stability.
In terms of problem solving, an entrepreneur can focus on solving specific needs of each group. For example, a company may create a product or service that meets people's needs, such as a home food delivery system.
It can also develop business solutions, such as inventory management software. On the other hand, an entrepreneur can develop a solution to government problems, such as the implementation of an air quality monitoring system in a city.
APPLY THIS TIP TO YOUR PROJECT
TASK
NOW THAT YOU HAVE READ THIS TIP, ANSWER THESE QUESTIONS:
- Find unmet needs. Ask people around you about unmet needs. Ask friends, family, colleagues... send them all a WhatsApp and an email asking them about their unmet needs. As you receive answers, group together those that respond to the same need; the need that is repeated the most is the best opportunity.
- Order the ideas received (with the number of times each one has been repeated) and classify them as in the pyramid.
CASE STUDY FOR AN ENTREPRENEUR TO DISCOVER REAL NEEDS AND PROBLEMS OF HIS CUSTOMER SEGMENT
Juan is an entrepreneur who wants to launch a mobile application that makes it easier for people who are not members of a gym to find sports activities in the city. However, before starting to develop the app, he wants to make sure that there is a real need for it.
IN ORDER TO DISCOVER THE REAL NEEDS AND PROBLEMS OF HIS CUSTOMER SEGMENT, JUAN DECIDES TO CARRY OUT A SERIES OF PROBLEM DISCOVERY ACTIONS:
- Survey: Juan designs an online survey to ask city residents about their physical activity habits, the barriers they face to exercise and the sporting activities they would like to do. He uses data analysis tools to identify patterns and trends in the survey responses.
- Remark: Juan observes people who engage in outdoor physical activity, such as running or cycling, and asks them questions about their experience. With this information, he tries to identify the needs and problems they face in their pursuit of sporting activities.
- Interviews: Juan contacts people who are not members of a gym and asks them questions about their experiences in finding sports activities in the city. He asks them to share their experiences and asks them about the barriers they faced in finding the right activities.
- Focus group: Juan brings together a group of people not affiliated with a gym and asks them to discuss the needs and problems they face when seeking sporting activities. Through discussion, he tries to identify patterns in the participants' experiences.
- Competitive analysis: Juan researches competitors and similar mobile apps and examines their features and functions. With this information, he tries to identify the needs that are not yet being met in the market.
With this information, Juan can design your mobile application more effectively, ensuring that you are meeting the real needs and problems of your customer segment.
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