What are customer needs?

Simply put, a customer need is a driving factor that pushes consumers to look for and purchase a product or service. These needs might solve a challenge they are facing, they might pertain to a service they require in order to accomplish a task, they might be solutions that make their lives easier or more comfortable – broadly, it is anything that pushes them towards a purchase decision. Unsurprisingly, most businesses are created to offer solutions for customer needs.


For instance, there’s a section of customers who do not have the time to go out and pick up groceries. To cater to the needs of these customers, online, on-demand grocery stores such as Walmart Grocery and Grofers were launched.

Customers can now get their daily, weekly, and monthly supplies delivered right from home. The fact that customers were looking for a more convenient solution can be easily derived here.

But is convenience the only reason why customer needs arise? Not really.

In addition to convenience, there are two other factors that drive customer needs. Let’s explore the three factors in detail.


Where do customer needs stem from?

Analyzing customer needs gives you the reason why customers purchase your product or service.

In a business context, customer needs stem from the desire to:

– Increase convenience: 97% of consumers say they have backed out of making a purchase because of inconvenience.1 In the previous example, by shopping for groceries online customers are optimizing for convenience. In fact, the more convenience a solution offers, the more likely are customers to purchase.

– Improve efficiency: Customers are constantly looking for better ways of doing something. For instance, creating to-do lists is a good way to be efficient. However, most people don’t stop with to-do lists alone. They also set up reminders that help them complete their task on time, and thereby further improve their efficiency. It’s this need that was served with the launch of apps such as Evernote.

– Reduce costs: In addition to increasing convenience and efficiency, customers need solutions that help them reduce costs. For instance, lean customer service teams turn to self-service and chatbots to cut down spending on other resources, such as a bigger workforce, on-premise teams, and round-the-clock staffing


Most businesses only take stock of customer needs at the time of the inception of the business. However, that might not be the wisest thing to do. Here’s why.

Why are customer needs important?

As a business, understanding the reason why your customers purchase from you, and staying on top of changing customer expectations helps you stay purpose-driven. This helps you:

– Create clear business goals and KPIs for employees

– Improve your product and service

– Keep your customers happy and increase customer loyalty

– Grow your business

Now that we’ve covered all the basics, let’s take a look at the different types of customer needs.

By Haadi