The importance of understanding customers’ psychological needs and values

When the customer is searching for a service and is in the decision-making process, expectations are formed and shaped. However, these expectations can change over time. It’s important for you to understand what your customers’ psychological needs and values are so you can increase customer satisfaction and loyalty with your service experiences. 

Your customer needs are the physical and psychological motivators that are causing them to buy your service and/or products. For example:

  • If they’re thirsty, they’re going to buy a drink. 
  • If they require legal advice, they’re going to engage a solicitor. 
  • If they’re struggling with anxiety, they’re going to go to their GP and get a referral to see a psychologist. 

Some questions to consider when shaping your service offerings: 

  • What direct feedback have you received from your customers in surveys, interviews or you’ve seen them talking about online? 
  • What are your competitors doing in the market and what do your customers think about their offerings? 
  • Who are your customers? 
  • What are their motivations behind their purchase? 
  • How do they prefer to purchase? 
  • How much can they afford to spend? 
  • What do they expect from you? 
  • How can you respond to these in the decision-making process and service encounter? 
  • How will your customer react to the service delivery experience? 

When customers are evaluating their alternatives they’re evaluating search attributes, experience attributes and credence attributes. 

  • Search attributes: style, colour, texture, taste, sound and feel to reduce the sense of uncertainty. 
  • Experience attributes: only can be evaluated during purchase and consumption (e.g. restaurants, allied health services, trades and the purchasing of property fall into this category). 
  • Credence attributes: characteristics that are difficult for customers to confidently evaluate (e.g. financial and medical attributes). 

You need to make sure you understand your customers’ needs and values, so you can reduce their perceived risks in purchasing and utilising your services. There are certain factors that enhance risk and uncertainty in customers. 

Once you understand your customers’ needs and values, you can add this to your content creation for social media, podcasts, blog posts and anything else that will bring in your dream client. 

Understanding customers' psychological needs and values - infographic

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