Five ways to identify the real needs of customers:

1. The price of products and services

It is the actual monetary amount paid by customers for purchase. It is the only balance point between buyers and sellers to form a transaction. If there is a disagreement at this point, the transaction cannot be realized. If this point is consistent, the transaction will be realized. When customers do not know their true needs or suppliers do not understand customer needs, price is the only basis for transactions. In many transactions, many customers think they know their real needs, and the suppliers subjectively think they understand all the customers' needs. Both parties go straight to the subject - price negotiation. As a result, what the customers buy may not meet their needs, and neither does the supplier. Profit, if the supplier uses "customer demand economics" to analyze customer demand, price will always be placed last, because in customer demand, price is not all, but only part of it.

Since 1998, China's Xerox Company has been promoting its large-scale high-speed printers in the insurance industry, with prices ranging from 1 million to 3 million yuan. By the beginning of 2000, initial results had been achieved, and some customers adopted Xerox's printers. products, but at this time, HP, IBM, STAR and other companies also discovered the opportunities of high-speed printers in the insurance industry and entered the market competition one after another. In response to the high price of Xerox products, they all adopted low prices (corresponding products were all 10 cheaper -500,000 yuan), but after two years of competition, Xerox still won the competition by the end of 2001 and occupied almost all the purchase orders of provincial units. Xerox did not cut prices to cope with competition. Instead, it used "customer demand economics" as its core guidance and took advantage of its early entry into the insurance industry to understand customer needs to formulate a package that included how to reduce customer usage costs and reduce procurement. risks, solve core problems, provide extended benefits, advance delivery time and other comprehensive solutions, including full after-sales warranty services, financing, full outsourcing services, prototype turnover, etc., which has blocked the crazy advancement of competitors. , and force them to force a shift in the competitive field.

In our sales process, once customers make low price requests or price comparisons, most salespeople panic and either lose the order or make very low profits. Regarding this situation, the author often reminds salesmen at work that when encountering price competition or low price requirements from customers, do not get entangled in price. Guide customers to focus on other areas of demand instead of just price, and the problem will often be solved.

2. Various maintenance costs and storage costs incurred by using products

The various maintenance costs and storage costs incurred by using products are the costs incurred by customers during the use of products. Various maintenance costs and storage costs that must be paid to ensure normal use of the product, such as repair fees and frequency of repairs, maintenance fees, use of consumables, parts replacement, power supply, occupied space, operators, etc., are all a product All or part of the cost that must be paid during normal use. Most of their own customers do not understand these, which is understandable. However, if the supplier does not analyze these costs, even if the transaction is concluded, the customer may not be satisfied. But in reality, there are too many such phenomena. Both buyers and sellers are very utilitarian and think they understand each other. As a result, in addition to price, both parties will pay for the low price.

In the previous example, when China Xerox faced many strong competitors, it did not compromise on price. Instead, through analysis, it realized that the Gousu printer was a high-end product. In order to ensure Normal use requires a certain cost of labor, technology and consumables. Therefore, Xerox takes advantage of its strong technical service advantages to provide after-sales all-inclusive services, that is, after purchasing the equipment, customers do not need to pay for the maintenance, repair and use of consumables. You only need to pay a certain fee for each print, which saves a lot of trouble and energy. On the other hand, it helps customers improve efficiency and reduce costs. Of course, it is very popular with customers.

When customers make a purchase, they often only focus on the surface price of the purchase. When they are proud of the low price purchase, they will also pay a higher price for use and reasonable disposal. In order to ensure that the product is Normal use sometimes incurs higher costs. However, as a supplier or business representative who truly cares about customers, they should have the responsibility to inform customers of these situations and risks, which is responsible and protective for both parties.

Price is not the only cost that customers pay to obtain a product. It should also include the cost of ensuring the normal use and reasonable disposal of the product. Therefore, it must not be ignored during the sales process. Otherwise there will be a heavy price to pay.

3. The time required for the purchase process and the time required to become proficient in using the product

It is the period of time from when a customer makes the purchase to becoming proficient in using the product. It is not only A cost and a reflection of efficiency that many customers and suppliers ignore. Customers may not be indifferent to the time they spend on purchasing, but they cannot be indifferent to the time it takes for the product to arrive after reaching an agreement, or the time it takes for product debugging and installation, or the proficient use period.

Xerox has also noticed the importance of this aspect. In the competition in the insurance industry, it also regards the time it takes customers to purchase as a cost, explains it to customers, and proposes relevant solutions. , such as providing priority training and operational practice for specific pre-sales users, spot trading, prototype turnover and other services. While other competitors, although they have prototypes, because they are bulk high-end products, they all use futures trading to reduce marketing costs and risks. , and the result was another loss to Xerox.

Many suppliers, business representatives, and even customers do not pay attention to the time spent on purchases, but time is a very important factor in business activities. It is a direct reflection of efficiency and an indirect reflection of cost. A problem that cannot be ignored during transaction negotiations.

But it is also because many customers and competitors have ignored this aspect. The author himself noticed this during the transaction negotiation and sales process, and many opponents have failed and still do not know the reason.

Time is a very important factor in social activities. If customers ignore the time issue when purchasing, they will ignore the other factors of cost and efficiency, which may even lead to big mistakes. Understanding this issue as a marketer can provide you with a powerful counterattack to avoid price competition.

IV. The risks that must be borne and the price that must be paid in the entire process

That is, during the entire purchasing process, customers must bear many risks and psychological risks due to information and knowledge. Burden and even cost in purchasing decisions. For example, product safety, environmental protection, on-schedule delivery, service capabilities, failure rate, calling efficiency, etc. cannot be revealed before purchasing. They can only be revealed after purchasing. This is the risk, and you must pay for the risk. The cost can be huge. Market competition has prompted suppliers to continuously highlight their differences and launch new technologies. Each company of similar products is emphasizing its "authentic" or "high-tech" or "first". Customers either wait and see, or they don't. Following the trend, but not making decisions based on your own correct judgment, there are always many risks, and it is inevitable that the same product will appear. If the East uses it well, the West will have many problems. Of course, there are also product problems, but it is mainly a matter of choice. After all, The specific circumstances of the East and West families vary widely.

In the competition in the insurance industry, Xerox has always magnified the risks that customers have to bear when purchasing, especially for products that cost millions of dollars. The risks are inevitable, which makes customers more cautious about purchasing. It has created a lot of defensive psychology and created many obstacles for competitors. However, the subsequent services launched by Xerox made customers feel at ease, and competitors were caught off guard. It turned out that Xerox had introduced corresponding measures in order to reduce the many risks hidden in customers' purchases, such as pre-sales equipment testing, Professional training of operators, installment payments, leasing plans, and full outsourcing services without purchasing are all what Xerox is very good at. Usage problems, service problems, etc. are all solved, greatly reducing the risk of customers' purchasing decisions.

In sales work, the author has formed the habit of reminding customers of purchase risks, which can even make customers despair about their upcoming purchase decisions and make many competitors incomprehensible. However, the author will also immediately It proposes a package solution to the customer's purchasing risks, so that the customer's purchasing thinking revolves around the ideas set by the author. This is the purchase risk cost emphasized by "customer demand economics".

So, every time a customer makes a purchase decision, he must bear a risk, but this risk is basically invisible. If the business representative helps the customer make this risk visible and propose a solution, The probability of transaction will be greatly improved.

5. Customers obtain all benefits from purchasing

It means that customers obtain many benefits by purchasing a product or service, including efficiency, safety, achieving goals, reducing errors and risks , promote transactions, comfort and many other aspects. When purchasing, most customers do not fully understand their own interests due to information or knowledge factors, and it is even difficult to accept other people's suggestions. Therefore, when making purchasing decisions, they are greatly influenced by the outside world and pay more attention to price factors. If the supplier cannot fully understand the customer and has difficulty convincing the customer, the transaction will be difficult. If you adopt "customer demand economics", you can help customers sort out all their interests, gain customer recognition, and then propose corresponding products or services. Then all it takes is signing the contract.

In the entire competition process in the insurance industry, Xerox has always emphasized that it brings many direct and tangible benefits to customers. Although the price of Xerox's products is much higher than that of other competitors, it has many advantages. Many functions and the services and solutions provided by Xerox provide customers with many required benefits, such as reducing purchase risks, simplifying maintenance, financing problems, etc., and the realization of these benefits directly guarantees the applications that customers will realize due to their purchases. Benefit.

So Xerox remains the dominant provider in the insurance industry and forces competitors to follow Xerox's lead.

In the sales process, the most important thing is to show customers that mature customers will gain many benefits from their purchases, so as to ensure that customers have a sense of security and accomplishment when making purchasing decisions. In his work, the author has always regarded customer benefit sales as the core of his work and avoided price competition to a large extent.