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Customer Demand

Din ydelse / dit produkt

 Distribution

 Elevator Pitch

 Comparative Advantage

 Estimate of Costs

 Competitors

 Customer Demand

 Pricing

- Dansk version         Print
As customers have to spend money on your service or product it is important to analyse which motives they have for doing so.

Usually it is hard for an entrepreneur to envision what kind of customer demand is satisfied by purchasing his/her service or product. The entrepreneur would rather let the customer know about the product’s properties.
However, a customer only focuses on the benefits and output to be gained from a given service or product.

Customers focus on benefits
Benefits group into several categories – benefits could be saving time, money, trouble, or transportation. A benefit could also be increased sales, a more distinguished appearance, being acknowledged and recognized, move in fine surroundings or getting your competitors where you want them.

PBO-model
You can use the PBO-model to help focus on customer demand.
The PBO-model helps you approach your service or product from three different angles:

  • Properties – facts on the product / informative labelling

  • Benefits – which benefits does the product or service offer the customer?

  • Output – what kind of personal utility value does the customer obtain from the purchase?
Some examples to elaborate the model:

Children’s wear
If you sell choice quality exclusive children’s wear you can approach your product this way:

  • Properties – organic cotton with non-toxic print, fair trade produced in Tanzania, environment friendly bleaching…

  • Benefits – good needlework, fine fit, allergy friendly, washing proof colours, withstands many washings…

  • Output – “only the best is good enough for my child”, “we can afford buying the best”, “we support progress of the less developed countries”…
Interviewing customers gives you an opportunity to decode which benefits and outputs are important to each customer. Knowing that, you must help the customer find the answers.

Services
Services too are analysable by the PBO-model. If you are a psychologist specializing in crisis therapy the PBO-model could look like this:

  • Properties – discreet access, inviting therapy room, neutral dress code, calm voice…

  • Benefits – no staring when entering the clinic, feeling comfortable in a nice atmosphere increases reliability, therapist oozes serenity…

  • Output – anxiety relief, sorrow soothing, opportunity to get on with one’s life…
Which benefits and outputs does your service or product offer your customers?

Thomsen

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Sidst opdateret: 03-10-2011

Væksthus Midtjylland