Leveraging Immediate Needs

In Patricia Seybold’s article “Get Inside the Lives of Customers” she describes the idea of understanding the customer situation. Customers and clients that are in need of something immediate represent a different type of purchase than customers that are simply looking. Using this idea, she describes how this was accomplished at a company known as National Semiconductor – a company that sells parts and supplies to engineers.

Originally the company conducted considerable survey research in order to get into the mind of what engineers needed. They accumulated mountains of data that allowed them to understand the engineer’s experience when they were in need of parts. So the company designed a computer program to help them throughout that process.

The program was designed to help engineers understand part specifications, cost benefit analysis, etc. – things that their research indicated engineers need. This saved the engineers a great deal of time and effort. Then at the end they could purchase the parts from National Semiconductor directly.

The program was brilliant. Engineers found the program exemplary in what it accomplished. So the company disseminated the program for free, and then charged engineers to use the program by the hour.

However, National Semiconductor failed to understand the engineer situation. Engineers did like using the program, but they weren’t in an immediate need yet . The engineers were on a time crunch, but the program hadn’t yet helped them find what those needs were.

Engineers were not inclined to enter in a credit card number for a program that hadn’t yet proven to them it could help them find what they need.

National Semiconductor realized it was missing out on a better opportunity. The software was so useful that engineers all over the world wanted to use its services, but were being turned off by the per hour cost. So the company decided to give the program away for free: Engineers flocked to this time saving tool.

Engineers received the answers they were looking for. Engineers placed their orders with National Semiconductor. The marginal revenue generated by charging for the program was minuscule in comparison to the revenue generated by engineers that used the program and ordered parts through the system.

By recognizing the customer experience, they were able to build a much stronger relationship and generate much higher revenues. This example effectively illustrates using your surveys and CRM research to try to understand customer scenarios, rather than simply customer buying habits. What the customer needs in the moment is just as important as who they are, and you should do what you can to integrate that idea into your research.