We have discovered that customers consider between 50 and 150 metrics (their desired outcomes) when assessing how well a product or service enables them to successfully execute any job. These metrics are the customer’s needs. A customer need is unmet when it is important to the customer, but not well satisfied with the solutions currently available.
To discover which of these needs are important and unmet, we have devised a mathematical formula we call the opportunity algorithm, which says that market opportunity = (importance + max,0 (importance – satisfaction)). This formula reveals which customer needs are most important and least satisfied; the ones that represent the best opportunities for growth.
For instance, if circular saw users agree that minimizing the likelihood of the cut going off track is an important and unmet customer need, then that need represents a market opportunity. The more important the need and the less satisfied the customer is, the greater the opportunity for value creation. We use sophisticated quantitative market research techniques to ensure the accuracy of our data, reducing the risk of failure and making sure we focus on the right opportunities for growth. (Learn more about discovering unmet customer needs.)