Tag Archives: hierarchy of needs

Master the Customer Hierarchy of Needs

Embrace Customer Expectations

Master the Customer Hierarchy of Needs

GUEST POST from Shep Hyken

Abraham Maslow was an American psychologist who created a model for understanding human behavior. Specifically, he was interested in what motivated people, and he devised five levels in the shape of a pyramid representing each of those needs. For those who need a refresher in psychology, those levels, starting with the basic needs at the bottom and working their way toward the top, are physiological needs (such as food, water and sleep), safety, love and belonging, self-esteem and self-actualization.

I’ve been thinking about a similar model for customers. I’m not a psychologist, and I’ve not done formal research on this idea, but I’ve been studying customer and employee experience in some form for more than 40 years. I’ve identified five areas (at least) that are important to customers when they buy from you and put them into logical order. So, here is ‘The Customer Hierarchy Of Needs’:

Customer Hierarchy of Needs

1. Products that Work – We’re starting at the bottom of the pyramid and working our way up. This is the base, and it’s simple: whatever you sell must do what you promise it will do. It doesn’t matter how great your customer service and experience (CX) are, if the product or service doesn’t work, customers will find an alternative.

2. Alignment in Beliefs – Your mission and vision statements are your beliefs. Your customers shouldn’t have to read those statements to know what they are. They should experience them when they do business with you. They will quickly learn how you treat them. If they like the experience, they align with you and what you stand for. While that can be enough, they may also enjoy doing business with you because of something that may or may not be in your mission and vision statements. That is a cause, charity or community activity your company or brand is involved with or contributes to. It adds to the emotional connection you’re trying to achieve with your customers.

3. Trust and Safety – If the company or brand has a bad reputation, getting and keeping customers will be tough. Even customers willing to take a chance may eventually experience what others have warned them about. Trust and safety belong together, but let’s first discuss trust. A sense of trust comes from different areas that can include (but are not limited to) a good reputation, positive reviews and ratings, customer-friendly policies (like easy returns), simple and friction-less processes, fast response times and friendly, helpful employees. Safety comes from assurances, including data privacy, secure websites, safe physical environments and more. Even if you have products that work—the basic need—without trust and safety, you might not be able to keep your customers past the first sale, assuming you have any at all.

4. Feeling Appreciated – Every customer willing to pay you for your goods and services deserves to feel appreciated. If you don’t acknowledge the customer with a simple thank you, they may not notice the first time. But there will be a point at which they feel underappreciated, and when they do, you put yourself at risk of losing them. Never miss an opportunity to express appreciation to your customers.

5. Emotional Connection – This is where you move customers from being satisfied to becoming loyal. Satisfied customers come back until something better comes along. Loyal customers come back because they like doing business with you and have made an emotional connection with you. They know your product works, they trust you, you make them feel confident (and safe) when engaging with you, they believe you have a good company and there may even be a cause or charity you mutually support, and every time they interact with you, they feel appreciated. At that point, your customers are feeling emotionally connected to you. Trust and appreciation are emotions. When all the boxes are ticked, you have the emotional connection that drives customer loyalty, advocacy and evangelism.

I could have written an entire article—or even a chapter in a book—on each of these five customer needs. Consider this article as a conversation starter. Perhaps you can add to this list of customer needs. Just because Maslow had five in his model doesn’t mean we are limited to that number.

Next week I’ll cover a similar concept, but instead of customers, I’ll focus on ‘The Employee Hierarchy Of Needs’. Stay tuned!

This article originally appeared on Forbes.com

Image Credits: Shep Hyken

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Balancing User Needs with Business Goals

Balancing User Needs with Business Goals

GUEST POST from Chateau G Pato

As a thought leader in human-centered change and innovation, my passion lies in exploring how businesses can thrive by aligning user needs with their core objectives. This synergy is essential for creating solutions that resonate with customers while driving sustainable growth. In this article, I will discuss strategies for achieving this balance, supported by real-world case studies.

Understanding the Nexus

At the core of product innovation and business strategy is the delicate dance of understanding and balancing user needs with business goals. While businesses need to generate revenue and grow, their products and services must also solve real problems and create value for users.

Strategy 1: User-Centered Design Thinking

Design thinking has emerged as a vital framework in bridging the gap between user needs and business goals. By focusing on empathy, ideation, and iterative testing, organizations can create solutions that delight users and fulfill business objectives.

Case Study: Airbnb

Airbnb’s success story is a testament to the power of user-centered design. Initially, the platform faced challenges in its value proposition. By engaging deeply with both hosts and guests, Airbnb identified key pain points, such as trust and safety concerns. The company implemented features like secure payments, verified IDs, and a robust review system. These changes not only addressed user needs but also drove Airbnb’s growth by building a trusted community.

The alignment of user needs with business strategy enabled Airbnb to expand its market share and build a sustainable business model that aligned perfectly with its goals of diversification and global reach.

Strategy 2: Agile Development and Feedback Loops

Agile methodologies emphasize flexibility and rapid iteration, allowing businesses to adapt quickly to changing user needs and market conditions. By creating continuous feedback loops with users, companies ensure that their products and services remain relevant and valuable.

Case Study: Spotify

Spotify exemplifies the application of agile principles in its product development. The company regularly gathers user feedback and analyzes listener behavior to enhance its offering. Through features like Discover Weekly and playlist curation, Spotify has continually innovated to meet evolving user needs.

By aligning its user-focused agility with its business goal of becoming the world’s top music streaming service, Spotify has seen tremendous growth in both user engagement and subscription revenue.

Strategy 3: Metrics that Matter

Identifying the right metrics is vital in balancing user needs with business goals. Instead of relying solely on traditional financial metrics, businesses must adopt user-focused KPIs such as Customer Satisfaction Score (CSAT), Net Promoter Score (NPS), and user engagement metrics. These indicators provide insights into how well the company’s offerings align with user expectations.

A company deeply committed to understanding user satisfaction and aligning it with its growth strategy exemplifies this approach.

Conclusion

Balancing user needs with business goals is an intricate yet rewarding endeavor. By adopting user-centered design thinking, agile development practices, and the right performance metrics, companies can unlock unprecedented growth and innovation. The stories of Airbnb and Spotify provide valuable lessons on how aligning user empathy with strategic objectives can lead to enduring success.

Ultimately, when businesses genuinely listen to their users while maintaining a keen eye on their goals, they create a harmonious ecosystem where innovation and growth can flourish.

Embrace this balance, and watch as your organization transforms challenges into opportunities for remarkable success.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

Image credit: Pixabay

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