"Value is only created in the process of satisfying Needs."
This has tremendous business implications:
1. Without Needs value cannot be created, and a business has no reason to exist. The person with the Needs is (just accidentally) called the Customer - and the above postulate makes the Customer indispensable, central and critically important. The only business case for Customer Centricity.
2. It puts logic into Customer Segmentation: the only(!) two dimensions that we ever want to segment by are Value and Needs, because they are fundamentally linked. Everything else (e.g. demographics, lifestyles, etc.) is just not at the same semantic level and is only a proxy (clue) for one or both of the main dimensions. The popular behaviour segmentation, for example, is a 80% proxy for Needs and 20% for Value (don't take these percentages seriously - but do take seriously the fact that Behaviour is, in fact, Needs).
3. It offers a simple answer to "How can we create maximum customer value?" - By deeply understanding and comprehensively satisfying customer needs.
This (misleadingly simple) response requires from an organisation quite a lot:
When all this is in place and is practised consistently, we can hope that the intimate understanding and successful addressing of customer Needs will translate into maximum Value for customers. Which will return as shareholder Value.
This opinion appeared originally at 1to1 Insiders, where the question was asked in a discussion