Knowing your customers’ needs and preferences are vital to ensure your business’s profitability. Learning about them enables you to acquire the knowledge that you need to help your brand create a unique and significant experience for them.
When a piece of information about your customers is thoroughly examined, it can be utilized to change their behavior and make them more receptive to your products and services. This is basically data based on your customers’ behavior and perception.
So scientifically, understanding these facts can contribute to the success of your marketing campaigns.
What are consumer insights?
Consumer insights are details about customers that businesses utilize to obtain a profound comprehension of how their market perceives things.
Studying human behavior enables companies to understand what customers want and need as well as how they can respond to it in the best way possible. This is how businesses are able to execute productive commercial steps and campaigns. It helps brands generate the type of message that substantially impacts their markets.
Conducting research about consumer insights is done properly when companies convene, examine, and decipher the correct type of data. Consumer insights are an integral component of business decisions and activities since a consumer-centric approach is what appeals to the market. It improves the effectiveness of business programs as the correct type of communication methods are applied.
This type of data, when interpreted right, can be used to enhance product development. It can also be employed to:
- Elaborate features
- Innovate new products
- Come up with attractive packages with perks and benefits to capture the customers’ attention
What are the examples of consumer insights? How did companies utilize them?
One of the companies that have dominated the world of technology is Apple.
When their team found out that people are not as persuaded as they were before when brands use a statistical and numerical approach, Apple went from the classic hard-selling strategy to a heartwarming advertising perspective.
Such movement led them to exceed Google in terms of device activations last 2016, gaining a 25% increase for the iPhone 7 and an 8% on the iPhone 7 plus.
Nike, a shoe-industry giant, once took a hit on their sales because they lost sight of who their customers really were.
Before it became one of the most sought-after brands that it is today, Nike’s sales previously declined because they focused so much on their target market despite the fact that 60% of their revenue-generating customers were people who do not use their shoes for an actual sport. Centering on athletes made them forget about their other costumers who were actually giving them a larger portion of their profit.
When they understood the reason behind their sudden loss of remarkable market share, the brand went on to learn and understand what their profitable consumers want and need, making an effort to communicate with them and discover their needs and preferences by going to sports events and establishments themselves.
One of the reasons why IKEA is so successful is that they know how to engage their audience in projects that use their products. They have utilized Pinterest’s new advertising methods like shopping ads, which helped the company to reduce its cost-per-click.
IKEA realized that one of their most profitable times is the back-to-school season — a time when students going to college are observing a limited budget, therefore having a tight space.
Since 50% of millennials use Pinterest, they used the platform to sell to college students and focused on promoting dorm-friendy furniture, as well as accessories for small spaces. They also went on to boost keywords and pins connected to dorm room ideas and organization. This established exceptional traffic on their site with an increased click-through rate of 72% and a decreased cost-per-click-rate by 37%.
Why do you need consumer insights?
Consumer insights can aid in studying your competitors. Regardless of your market position in the industry, seeing how your customers react about different products and services available to them can divulge a lot of necessary data that you need, such as their needs. By then, you can apply such information in your processes to enhance your product, business, and service.
Being able to engage in the conversations of your consumers when it comes to companies who are offering the same products and services may be extremely important, especially if the pros and cons are mentioned in comparison to yours.
Improve customer experience
Consumer insights also help in producing the best customer experience.
It maps their customer journey and determines where improvements and solutions can be made, including the type of approach that’s effective in campaigning for your products and services.
Approaching your customers without focusing on a specific segment, like what toothpaste does, for instance, does not find it imperative to personalize their marketing strategies to increase their profitability.
However, when the competition gets hard, personalizing communications is certainly of the essence for numerous businesses. Knowing who your customers are and creating a specific approach for them enables you to send a persuasive yet plain and simple message, which increases your customer base and loyalty.
This is one of the reasons why consumer insights can help you determine the reasons why people tend to buy certain things, including the factors that have led them to come up with such purchasing decisions. This shapes up your strategies and activities, identifying the best methods of reaching out to your various audience segments.
How are consumer insights obtained?
Obtaining consumer insights is similar to trying to get acquainted with your customers’ preferences without asking them, and then using it to come up with activities that would benefit both parties, then proposing it to them.
Consumer insight gives you a piece of plain and understandable information that you can put in to make your marketing strategies, products, and services even better.
How consumer insights can help your brand depends on how you work with the information that you get from your customers. How you get it, where you get it, how you analyze it, and how you interpret this information matters.
This is how you can obtain consumer insights:
Variegate data acquiring techniques
For companies to achieve the finest outcomes, it is important to diversify the tools that they plan to use in obtaining consumer insights.
Aside from making use of traditional surveys, a brand can also take advantage of neuromarketing tools like:
- Emotion measurement
Technological innovations like these can give the business a comprehensive understanding of the market’s behavior and motivation by grasping the entirety of what customers have to say. Using different methods will help you learn more about the unconscious and uncontrolled processes that happen inside the customer’s brain, the foundation of any vital consumer insight.
Ensure a quick but accurate analysis of data
Use technology and data-driven solutions to your advantage. Include technology in analyzing the data that you get from your customers.
Make the information pertinent and applicable. Or else, these data will be useless, and all the time and effort that you have invested in this research will go down the drain. This is the reason why automated solutions are necessary. They accelerate the process of analyzing data.
Research methods that are incorporated with technology can separate poor quality answers and information which are excluded from automatically generated reports.
Make sure that the data is interpreted properly
Interpreting data is the hardest and the most intricate part of the research.
This is the time where you have to determine the barriers that hinder your customers from becoming involved with your products, as well as discovering behavioral patterns that must be given attention to polish your methods of responding to their needs, shooting up your sales and gaining customer loyalty right after.
Consumer insights that are correctly gathered, examined, and verified are vital to avoid and impede any mistake during the interpretation of data. You may also refer and hire professional market researchers to understand your data better.
Find people who are well-versed in juggling tasks and utilizing the correct technologies that can aid in knowing the things that you need to perceive in terms of business. They must be excellent in converting raw data into useful concepts and must identify the correct platforms to achieve this.
Personalized and specific business discernment is the conclusive competitive advantage that you can count on in the future to thrive in the competition and stay in the industry.
Consumer insights are necessary to build rapport with your customers. It helps you in learning about your audience and understanding them better — leading you to personalize your marketing strategies in such a way that their needs and preferences are met.
Getting it doesn’t always come easy though. It takes a lot of time and effort to interpret these pieces of information and apply them to your systems. But the whole process is definitely worth it.
Collect actionable consumer insights with the help of TrustSpot and understand your customers better.