Market analysis – how to learn about customer needs and increase profits?

Competitor analysis Marketing
Michał DmitrowiczMichał Dmitrowicz
Published: 03.10.2023
11 minute

Customer needs are a rather mythical entity that everyone has heard of, but not everyone turns their head to it. That’s a mistake! That’s why today we will devote a lot of attention to this topic.


What is a customer need?


In the business world, the success of any company is based on its ability to satisfy customer needs. Customer need is the foundation upon which marketing strategies, product and service development, and building loyalty among consumers are based. So in order to achieve profits and market leadership, you must fully understand and respond appropriately to the needs of your target audience..

Customer needs are what customers want or need in their lives or businessesand what can be met by offering within our SaaS application, for example. Understanding these needs is the best path to marketing effectiveness..


Market analysis | customer needs | graphics | Senuto

Customer needs research – the key to success


Customer needs researchis one of the most important tools that allow us to explore the motivations, preferences and expectations of our target audience. They help us learn about their problems, goals, and what benefits and values they are looking for in our services..

The basic tool to use for this purpose are open-ended questions. The customer is then free to put their thoughts into words, and this is very important. This puts us on the best path to gaining valuable information. So remember to use open-ended questions when constructing surveys, interviews or NPSs..


Customer needs_graphic with tools | Senuto


Key elements of customer needs analysis


Target group: Defining a clear and precise target audience is extremely important. We need to know for whom we are creating our product/service and what are the characteristics, needs and preferences of the audience..


Market and competition: Analyzing the market and the competition will allow us to understand what are the current solutions in the market, what gaps exist in the competitors’ offerings and how we can differentiate ourselves by providing unique and valuable products or services..


Questions about needs: It really pays to learn how to ask about user needs. Putting in place a systematic process for asking customers is key. Find out exactly what they need, and adjust your offerings and marketing strategy with precision worthy of a master..


Satisfying needs:Creating and delivering solutions that effectively meet customer needs is key to customer satisfaction and brand loyalty. Service reliability and meeting expectations translate directly into our profits..


Service level:A high level of service or products provided is extremely important for customer acquisition and retention. Effective problem solving, quick response to inquiries and customer care at every stage of cooperation contribute to building positive relationships..


It is important for the entire team in a company to be aware that the customer’s needs must be at the center of all activities. Customer needs analysis should be a continuous process and allow us to adapt our offerings to changing market and customer requirements. By doing so, we will be able to effectively increase our profits, build customer loyalty and succeed in the dynamic world of SaaS..


Customer requirements. How are they different from needs?


In the marketing world, the terms “customer requirements” and customer needs” are often used interchangeably, but there are important differences between them. These, in turn, are worth understanding in the context of market analysisand building marketing strategies.

Customer requirementsrefer to a specific list of customer expectations of a company. These are usually clearly defined features, functions or solutions that the customer expects to meet their specific needs or solve their problems. Customer requirements are clearly identified and understood by both the customer and us as a service or product provider..

Customer needs, on the other hand, are more general in nature and refer to deeper emotional, social or functional deficiencies that the customer wishes to address. Often, customers are not fully aware of their needs or cannot accurately name or even describe them. For example, a customer may feel frustrated because they see they have a problem managing their notes, but aren’t sure if they need a more advanced sorting function or perhaps a more intuitive interface..

It’s worth emphasizing that customer requirements are usually specific solutions that the customer sees as the answer to his needs. In turn, knowing and understanding the customer’s needs is a key task for marketing professionals. It is the analysis and research of the customer’s needs that allows us to discover these deeper gaps and transform them into a concrete set of requirements that we can satisfy with our services and products..

Adequate research into customer needs therefore allows us to go beyond just satisfying requirements and create solutions that effectively meet these often intangible customer expectations. This allows us to build advanced features that surprise and attract customers, rather than just meeting their basic expectations..

Understanding the difference between customer requirements and needs is important for developing innovative solutions and building customer loyalty. Research and analysis of customer needs allow us to learn about the motivations and goals of our target audience, which is the foundation for effective marketing strategies and increased profits for our company.


Creating customer needs


Creating needs is one of the key aspects of effective marketing in today’s competitive digital world. This means not only identifying existing customer needs, but also actively influencing their perceptions and creating new ones. This strategy allows us to conduct innovative activities that effectively attract the attention of the target audience and allow us to stay ahead of the competition..


Understanding customer psychology


Effective needs creation begins with understanding the psychology of the target audience. We need to know their motivations, desires, fears and goals. Only then will we be able to create valuable solutions that meet their deep needs..

This is also where needs research plays a key role. We can use open-ended questions to find out what their aspirations are and what they really need. But it’s worth remembering that often customers themselves don’t know exactly what they need. Therefore, we should proactively identify new areas where we can meet their needs before they realize it themselves..


Innovation and uniqueness


The whole process also requires us to think innovatively and offer unique solutions. Our product or service must stand out in the marketplace and provide value that our competitors cannot. This does not necessarily mean creating new services or products just for the sake of being new. We need to name and understand the real gaps in the market and enrich our offerings based on real customer needs..


Building brand and trust


Delivering new solutions is not enough. It is also necessary to build branding and trust. A brand should be associated with reliability, quality and responsiveness to customer needs. As customers experience the value of our services, their trust and willingness to use the proposed solutions grows..


Using social media and the Internet


Today social media plays a major role in creating customer needs. This is where users seek information, share opinions and make purchasing decisions. Using these communication channels, we can actively influence their perception of the brand and create new needs..


For this purpose, you can:.

  • organize advertising campaigns and contests,
  • .

  • provide valuable content that engages our target audience.

It’s also a great place to gather feedback from customers and gain insight into their needs. .


Risk accountability


If you are launching a new solution, you must be aware that not all ideas will be successful. However, taking risks is an integral part of innovative marketing. It is important to constantly monitor results and respond to customer feedback. This is the only way we can adapt our activities to the changing needs of the market..


Examples of customer needs research


Track the customer’s purchase path – analytics


Analyzing customer data and behavior provides valuable information about customer preferences and needs. With the analytical tools available, we can understand:.

  • what features of our application are used most often,
  • .

  • in what order a customer makes a purchase,
  • .

  • what items generate the most interest.


The results of this analysis allow us to better understand what is key for our customers. We can deduce what services and products are most valued and meet their needs, and which areas need improvement. Based on this information, we can make decisions about the further development of the application and adjust our marketing efforts..


Study customer satisfaction – customer success


Regularly conducting surveys or interviews with customers allows us to gain valuable feedback on their experience with our brand. Open-ended questions allow customers to express their opinions, complaints, as well as praise and suggestions. .

Customer satisfaction surveys are a great way to understand what customers like and what can be improved.It is worth taking their suggestions into account and implementing those changes that can significantly improve customer satisfaction. Attention to their satisfaction and consideration of their needs translates directly into customer loyalty and higher profits..


Tracking company reviews – social media/forums


Tracking company reviews on social media and forums helps you understand what your customers’ main concerns, expectations and needs are. The Internet and social media are places where our customers share their experiences, so we can learn about their real expectations and opinions. .

Responding to this feedback and interacting with customers on social media platforms is key. Adequate engagement and support helps to build a positive image of our brand, as well as fix any problems a customer may encounter. Customer feedback on industry forums or review sites allows us to respond quickly to possible issues and better understand their needs..


Keyword search – search for questions related to the offer


Using keyword analysis tools, we can identify what questions and issues potential customers are typing into search engines. These are directly related to their needs, and provide an excellent starting point for creating content and creating solutions to address those needs.

Using keywords in content on the website, blogs or social media allows us to reach our target audience when they are in the solution-seeking phase. So by answering their questions and providing valuable information, we build trust and a positive brand image. We are hitting those precious micro-moments where people are making concrete decisions. .


Read also: Keywords in SEO – where to look for them and how to choose them?.


How to satisfy your customers’ needs?


To effectively know and understand the needs of our target audience and increase profits, we need to approach the task with forethought and strategy. That’s why it’s useful to summarize the path of satisfying customer needs: from knowing the needs to monitoring the level of service. .


Customer needs research – open-ended questions


The first step is to conduct a customer needs survey. If we use open-ended questions, we will get valuable information about what customers expect from us..


Customer needs analysis


The next step is a thorough analysis of the information collected. Based on the collected responses, we can identify key areas for improvement or adjustment. Through analysis, we will be able to better understand what is most important to people and how we can meet their expectations..


Delivering superior service


Satisfying needs cannot be limited to words or promises. We need to deliver top-quality services that meet the real needs of our customers. The reliability of our application, quick response to reported problems, and regular updates that take into account customer suggestions are key to building a positive image of our brand..


Creating new solutions


Remember that meeting customer needs doesn’t just mean delivering what they want right now. As experienced marketing professionals, we should actively create new solutions to meet their future needs. Innovation allows us to stay ahead of the competition and stand out in the market..


Regular contact with customers


The next important element is to maintain regular contact with customers. Keeping a dialogue, listening to their opinions and incorporating suggestions, helps us better understand their needs. Communication can take place through various channels, such as social media, emails or even personal meetings..


Service level measures and customer needs diagnosis


A final but very important element in meeting customer needs is to monitor and measure customer service levels. Let’s use the appropriate metrics for this, so that we can assess on an ongoing basis the extent to which services are meeting expectations. It is also worthwhile to regularly diagnose the customer’s needs in order to learn about their changing requirements and adapt our activities to these changes..


In summary, in order to increase profits and achieve success, we need to focus on meeting our customers’ needs. Researching customer needs, analyzing data, providing top-quality services, creating new solutions and regularly contacting customers are the key elements that will help us get to know our target audience better and increase customer satisfaction, which will ultimately translate into increased profits for our application.

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Michał Dmitrowicz

Head of Marketing w Senuto

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