How entrepreneurs can address customer needs

Before entrepreneurs think of any product such as the kind of cloth to produce, they should first have a consumer in mind because envisioning one’s targeted customer helps in growth of business through addressing their needs. PHOTO BY DOMINIC BUKENYA

What you need to know:

For any business to be successful, entrepreneurs must identify their customers through a market research that should help understand their potential customers. James Abola explores the values customers seek.

Business is a very deliberate activity. The entrepreneur must learn to aim accurately before shooting in order to ensure success. In order to thrive, the business must be clear about the value which its customers seek or desire and how the business goes about providing that value.
There are four elements to a customer value statement.
Uganda’s main export market by 2012 and when war broke out in 2013 the effect on Uganda’s economy was immediate and severe. You have got to be clear about the market segment you are serving. Markets are segmented by a variety of factors, including: Income level, geographical location and other demographic factors such as age or gender.

Need
Once you are clear about the market segment, you need to clarify the customer need you are addressing, which your competitors are either not addressing at all or are doing so poorly. Many businesses stumble at this point by repeating the same errors or poor services offered by the competition which does not persuade clients to shift to them. When faced with the choice of two businesses that do not make the effort to offer better services, customers will opt for the devil they already know.
There are several possible things that a customer may classify as a need. Some businesses serve customers that want to upgrade to a new gadget the way the global electronic giants such as Apple and Samsung introduce new smartphones every near. In some cases, customers need products or services which work as promised.
Other possible needs include the ability to customise, design, risk reduction, accessibility and convenience.

Approach
Once you have identified the key need to be addressed you must come up with the approach to meet the need. The approach should be both compelling and secure.
There is a bank which has eliminated the need for customers to fill deposit slips. This is a compelling approach in a market where other banks insist on customers filling deposit slips then after the teller has captured the deposit details; it is still printed on the back side of the bank slip. I do not, however, consider the approach of the bank to be secure because it can be easily copied by other banks if they are interested.

Benefits
Customers are keen to know what makes your product or service more beneficial compared to what the competition is offering.
In my residential area I have two options of public means of transport to go to the city centre. I can either use a bus or a commuter taxi. When I have the chance I often opt to use the bus which charges about 75 per cent of the price charged by the commuter taxi and takes about the same duration of time to get me to my destination. The bus offers superior benefits compared to the taxi and variance is further enhanced when the taxi tout resort to hurling abuse at the “poor” people who wait for the cheap bus instead of boarding the more expensive taxi.
In order for your business to offer consistent customer value you must know your market, address specific customer needs, adopt a convincing and secure approach and offer superior cost benefits when compared with competitors.

James Abola is a business/finance consultant and Team Leader of Akamai Global.
Email: [email protected]