Once customer needs are established, this information can be used in all parts of the business to increase profitability. Specifically:
Determining customer needs is a critical step in building a successful business. Taking the time to do this will go a long way to ensuring business growth. Customer needs change over time so we recommend that businesses revisit their analysis on a semi regular basis. It's important not to be afraid to change things should the research indicate this may be required. Small changes here and there may be all that is required to ensure that customer needs continue to be met.
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What does “customer needs” actually mean? On a subconscious level, all customers feel the need to be listened to, to be understood, made to feel comfortable and to feel welcome. But these are basic needs that won’t compel the customer to buy. They are, however, base level needs which must to be met in addition to the need to have a problem solved. For example the need to write good essays.
Base level, or sub-conscious, customer needs can be met by:
On a conscious level, customer needs are related to a problem that will be solved by making a purchase. Many businesses only guess at what their target customer needs are. Some get lucky and guess correctly, while other businesses languish because they have guessed incorrectly. Taking the time to correctly identify customer needs gives businesses a competitive edge. This competitive edge will attract and retain customers, persuade your customers to shop with you more (ie. repeat customers), and to increase the amount that they spend. So how do you identify customer needs? There are broadly two sources of information used to assess customer needs. One is conducting primary research, and the second is using secondary research. Primary research tends to be costly and therefore is mainly the domain of larger companies with a fair marketing budget. Primary research is the process of gathering original information directly for your purpose. It consists of one or more of the following:
Given food is a fundamental requirement for all people – restaurants and other establishments that meet this basic need are always in demand. According to the National Restaurant Association (“NRA”) over 42,000 new restaurant licences are issued each year and every one of those should be armed with a restaurant business plan.
It is widely recognised that restaurants have the highest attrition rate of any business type. The attrition rates in the sector very wildly, ranging from 90% failing in the first year, to as low as 20% in the first year of trading. A recent academic survey conducted by researchers at Michigan State University found that 27% of start up’s failed in the first year; after three years 50% of those restaurants were no longer in business; after five years 60% had fallen away and before the end of the decade 70% of restaurants were no longer trading. While these may seem like scary statistics a subsequent study at Cornell University in 2005 revealed that 81.4% of small business failures result from factors within the owner’s control. In other words, despite these damning metrics, failure is by no means inevitable. So how can restaurateurs evade this landmine? Three words leap to mind, Restaurant Business Plan. The Need For A Restaurant Business Plan Every restaurant will require start up funding to get the operation off the ground. Whether that is a bank loan, a government grant or some form of equity funding, it is absolutely necessary to have a restaurant business plan. Funding is clearly an important hurdle, but the reason that the attrition rate is so high is because restaurant owner fail to plan in a sector that is characterised by:
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AuthorHi, I'm Beatrice. I am a Pittsburgh restaurant owner. We are especially good at making barbecues. ArchivesCategories |