When you build your product, do you focus on customer needs or customer wants? They are so close words. Again, what is customer demand? Let's understand these three things and how they impact a product manager.
💠 What is 'Customer Need'? Need arises when there is a state of deprivation.
💠 What is 'Customer Want'? Want is influenced version of culture and individual personality. Need is inside your body and want is your imagination.
💠 What is 'Customer Demand'? When wants are backed by buying power, then it becomes demand. Customer demand is fully backed by customer behavior and psychology. There are few factors which shape the demand from want. They are Price, Quality, Choice, Convenience.
So which one among these three is important for product managers? All three are important, but understanding the customer need is most important among all. As a product manager you need to think how you can influence those needs into wants which your product can satisfy. Let us see few examples:
👉 Example 1:
➤ Stage 1 > Need: You are hungry after workout/ exercise. You need food.
➤ Stage 2 > Want: You want to have Healthy food. There are multiple choices you have like Option A, B, C etc.
➤ Stage 3 > Demand: You decided to order Option A from online. How was this decision made? Option A is moderate price which you can afford. You decided not to cook as you are tired after workout. So, it is convenient for you to order something via online than go outside to eat. Your choice Option A is influenced by your taste of food or may be culturally you like that food. At last, you don't want to compromise on the quality. Using these 4 parameters, you made the final decision to buy Option A.
👉 Example 2:
➤ Stage 1 > Need: You are sick, and you need to take medicine.
➤ Stage 2 > Want: You want to visit doctor before taking the medicine. You can go to a hospital, or you can do doctor consultation online. You have several options.
➤ Stage 3 > Demand: You decided to do doctor consultation online. Again, the decision was made based upon 4 parameters i.e., Price, Quality, Choice, Convenience. Online consultation is convenient, as you are sick it is difficult for you to go outside. Also, online consultation might be less costly or at the same price. There are several options from where you can choose your doctor. You checked the doctors' degree before choosing any doctor consultation online. At last, you choose quality of service from a renowned doctor.
✅ So where shall a product manager should focus?
In my first example, if you focus on solving the need - you will be come up with product ideas. Your solution will influence the user to take service from you. The online order delivery is able to provide the service to quench the person's hunger. The online doctor consultation facility was able to solve the customer problem too. The main purpose of your product is to solve customer problem. The problems in above examples are present in customer need. That is how you will come up with new ideas by focusing on customer needs.
💎 Sir Henry Ford said once- 'If I'd asked my customers what they wanted, they'd have said a faster horse.' So don't focus on the want, focus on the customer needs. That is the root cause why you are developing your product.💎
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