Staying competitive requires a genuine understanding of customer needs and desires, but not without first listening. Do we agree to this?

Active listening involves being totally focused on hearing the words the customer is speaking, interpreting what these words mean, and responding in a positive manner that demonstrates (1) you understand what the customer is saying, and (2) you consider it to be important. Active listening is the only effective means to rapidly uncover information that is critical to satisfying the customer.

you sure have got a point, but you also should offer advice to help the customer and convince him into what's needed.

I completely agree with the above said.

that's because listening is first step to understand the customer & their needs.

Listening in order to understand customer needs can also be defined as Customers Feedback. An organization can only grow if it takes into account both the positive as well as the negative side of the inputs provided by the customers and try and turn the negatives into positives. Hence, listening is the first step in understanding and fulfilling customer's needs/expectation.