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Quantifying Customer Needs
2 min read
Previously, we uncovered customer needs. We wrote out each customer need into a single statement using this formula: [direction of improvement] + [performance metric] + [object of control] + [contextual clarifier (optional)]. That standardized sentence structure now allows us to return to customers and ask them to quantify their needs according to importance and satisfaction. Toward that end, we employ a survey.
In designing the survey, there are a couple of things to watch. First, the survey will be long. Your customers likely have 100+ needs. Therefore, make the survey unambiguous for customers. It is advisable to consult a survey statistician. Moreover, be sure to collect some contextual data. For that purpose, brainstorm along what metrics your market might break down into segments. Following the survey, we will employ statistical tools to segment your market along underserved customer needs. The contextual data will allow you to describe the resulting segments. To guarantee statistical significance, aim for up to 1,000 survey participants.
As a result of the survey, you are able to uncover market-wide hidden opportunities (underserved customer needs). For that purpose, first convert importance and satisfaction to a scale of 0 – 10. Thereafter, calculate the opportunity score for each customer need: Importance + (Importance – Satisfaction). It is 'Importance +' to ensure the opportunity score is always positive.
We continue by segmenting the market along underserved customer needs.