Customer insights can tell you what people need, how they make choices, where they usually buy, how often they buy, and what situation they’re in when they buy what you sell.

Now it’s time to shape your products or services, and where you sell, to suit your customers.

What customers want and how they think

Ask yourself questions to test how well your product or service fits your customer insights.

• Does it meet customers’ needs?
• How and where will customers use it?
• What does it look like, how is it packaged?
• Do customers know and love the brand?
• How is it different to competitors’ offerings?

Does it meet customers’ needs?

Customers want your product or service to fit what they expect. One of our case studies is about Manu’s lawn mowing service. Manu’s customers expect a tidy result and healthy grass. Customers probably also expect Manu will:

• remove grass clippings
• trim the lawn edges.

For any service, customers expect it to:

• start and finish on time
• be easy to book and pay for
• put right any problems.

And for any product, customers expect it to be:

• easy to order and pay for
• safe to use
• last a reasonable time.

Customers might take these features for granted, but not providing them is an instant fail. For an example, see our Manu’s Mowing brand case study below.

Sometimes your product or service might be different to what customers expect. Ask yourself if the differences make it more or less attractive overall. An extra feature can make it more appealing, but not if it becomes hard to use or too expensive. For example, customers wanting fast food will be put off by a complex ordering system.

How and where will customers use it?

Based on your customer insights, think about how well the product or service fits its intended use. For example, products used outdoors need to be waterproof. Kitchen products need to be easy to clean and resist damage from oils or foods. A service for high-stress workplaces must be reliable and easy to use.

Make sure you consider all the settings your product or service could reasonably be used in. Checking could help you spot useful features you’ve missed out, or assumptions that don’t hold up.

What does it look like, how is it packaged?

The product’s design or decoration can affect its appeal. For example, a child’s bike available in red or green may have a strong effect on children’s preferences. Minor features like handlebar streamers could win the deal, even if they don’t improve the bike’s basic function.

Packaging can add appeal, for example, a noodle packet with serving suggestion pictures. The styling can help it fit your brand, such as appearing modern or friendly. Customers who value sustainability may choose products with plastic-free packaging.

Appearance and packaging can be important for services too. For example, Manu’s lawn mowing service uses clean, well-maintained equipment and vehicles, in part to be more appealing to customers who value cleanliness.

Do customers know and love the brand?

A memorable name and brand help customers find you. Your logos, messaging and other branding help customers spot your offering and connect it to your business. Your website and online advertising do the same thing for products or services sold online.

For example, a brand that emphasises reliability expects to appeal to customers who prioritise safety. But they’ll need to find your product and understand your brand to realise you offer what they want.

It may help if the name fits what customers need from the product or service. For example, a product for changing car tyre might benefit from a name like ‘Easy-change’ or ‘Quick-tyre’. It reflects what customers want. A name like ‘TQ3000N’ misses an opportunity to promote the product and its strengths.

Build a brand customers will love

How is it different to competitors’ offerings?

Your product or service could be different to what competitors offer in several ways, for example:

• cheaper or more expensive, or with different payment options, for example, subscription or monthly fees instead of paying upfront
• faster, either to use or to receive after ordering
• better tailored to each customer’s exact needs
• better quality, either in appearance or in features or other aspects of performance
• more easily available locally.

How to research your market and your competitors

Offering products or services that complement each other can: 

• give customers more value 
• bring in more revenue 
• help you grow your online business 
• give you an edge over competitors. 

Understanding what products and services go together can help you improve your offering. For example, you could create bundles or combo deals for items that naturally go together. Or offer subscriptions for products your customers buy regularly. 

Or you can take the next step and create value with something completely new. If you currently sell products, think about related services. If you sell services, consider related products. Use the tool below to explore opportunities. 

Where you sell your product or service can influence who finds it and buys it. It’s also useful to think about where customers might find out about your product, service or business. You could have a presence in directories, on Google Maps or on social media, for example, a Facebook page.

Businesses sell in a range of physical or online places, for example:

• direct sales or bookings, for example, face-to-face from your own premises, or over the phone
• supplying products to a business that sells online or in their own stores
• online sales or bookings via your own website
• selling via a shared marketplace, such as Trade Me or Facebook Marketplace.

If it helps your customers, it’s a good idea to offer multiple options, for example, face-to-face and online.

Direct sales suit businesses that want to keep control of the sales experience, for example, for premium products. Having your own store helps you:

• make the most of your brand by creating an overall experience from entering the store to exiting
• build a brand people can easily connect with
• talk directly to customers and explain products to help them make informed decisions.

But you’ll need plenty of money to set up and run your store. You might also miss out on customers who would discover your products in a bigger store or in a chain. For example, selling ice cream from your own store will limit reach compared with supplying ice cream to supermarkets.

Choosing a distributor means:

• you save money on storage and setting up your own store
• more customers may see your product.

But you have less opportunity to talk to customers directly. They’ll see your product alongside competitors. Not everyone will choose yours. Exposing yourself to competition can help you quickly see how your product fares. It’s a good chance to make changes and catch up.

Identify which places suit you

These questions can help you decide where to sell based on your customer insights. You might end up choosing more than one place.

Question 1: Where do potential customers go to buy this type of product or service?

Choose somewhere that helps new customers find you, for example:

• where they will see your business and what it offers in their daily life
• a website that’s easy to discover
• a speciality store or website if you sell premium products or services.

Choose somewhere that helps customers easily buy from you, for example:

• near where they live or work
• easy to get to
• an online store that’s easy to use.

Question 2: What are your competitors doing?

Reflect on the experience of buying from you vs buying from a competitor. Think about:

• premises or work vehicles
• customer service in store or online
• customer support after making the sale or completing the service.

Question 3: How can you improve so customers choose your product or service instead of your competitors? 

Pick ways to help customers decide, for example:

• demonstrations or hands-on trials
• product photos showing different angles and close-ups
• show your values, for example, eco-friendly packaging or parts.

If you’re confident your product/service and presentation compare well, it may help to locate your premises near competitors to encourage comparison.

Outsource vs in-house

Where and how you sell can also make a big difference to your efficiency as a business. 

Think about your operations strategy. Common examples include:

• Outsourcing: You focus on your core strengths and outsource other tasks to businesses that specialise in those areas. For example, a microbrewery that outsources packaging and distribution.
• Vertical integration: You take full control of your processes in-house. For example, a microbrewery that installs a production line to can and label its beers.

Knowing your networks: Supply and distribution

If you’re selling overseas 

If you’re selling to customers overseas, you’re exporting. This means new markets and more customers, but also new challenges. 

What you need to know about exporting 

Try to optimise operations or customer support, for example: 

• using a local warehouse for faster delivery
• offering local customers support that matches the time zones and accents of your customers 
• distributing your products and services through another channel 
• getting your products made overseas. 

A local base can help you build credibility and stay in tune with local trends. 

This about how to ship and distribute 

Think carefully before you set up overseas