The Retailer Summer Edition 2021

SUMMER 202 1

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HIERARCHY OF CUSTOMER NEEDS

Innovated Needs Solutions that meet needs that change the behaviour and expectations of customers.

Preceived Needs The things customers notice, positively comment on and might even pay more for.

Core Needs The fundamental things that must be part of the Product, Service or Experience that are only preceived if they are unmet.

Needs are not static and over time move downwards, through the Hierarchy of Needs: • Innovated Needs become Perceived Needs e.g. The original Apple iPhone made a huge jump from existing mobile phones and catalysed the plethora of what became the premium smartphone category. • Perceived Needs become Core Needs e.g., the smartphone category became ubiquitous and exploded with a vast range of what is now standard functionality, high-quality cameras, music players, games stores, social media, apps, a marketplace for third- party accessories etc. To successfully deploy the Hierarchy of Customer Needs, one must prescribe a new set of measurements that showwhich needs are being met and those that are failing to be met.

Whilst this article sets out a newway to think about customer experience, through the lens of customer needs, it only scratches the surface of what focusing on the understanding of customer needs can achieve. It suggests some design principles that an organisation can consider supplying to its CX programmes. We have been working with BRC Learning on the Customer Needs Solution (RCX) which can be customised and deployed in any retail business. The solution is based on 10 years of experience and practical application and has already proven that thinking differently about the CX is a way to organisational success.

Stephen Hewett stephen.hewett@internalconsulting.com