Trend Analysis: Benefits, Types and Examples
Trend analysis is the way to predict consumer behavior and what will be their need in the coming future. If you are a product company, trend analysis can change your game. With the latest trend analysis, you can get actionable insights and predict the market’s future.
Trend analysis can provide a consumer intelligence insight, which can make you deep dive into the required inputs about consumer behavior within a specific timeline.
Answer some of the questions before we proceed to understand the details of the trend analysis.
- Are you still using the old data to plan your business strategies?
- Do you feel panic about backing up your trend analysis reports?
- How do you decide about the next marketing strategy?
- Do you always check the latest trends for your product or service?
- Do you have a data analysis tool for managing trends?
If you can relate to these questions, then it is important to understand the value of data-driven decision-making and how it impacts the ROI of your business in the longer term.
Opt-in for trend analysis, get expertise in data and analytics, and comprehensively use these latest global or local trends to improve your business performance. Predictive and cash flow analysis can help ensure the success of product campaigns in the long run.
Many tools are available for trend analysis but finding the right one for your business is the challenge. But before that, it is essential to understand what trend analysis is and its types.
What is trend analysis?
Trend analysis is the method to predict customer behavior and choices over a specific period on any search engine. With trend analysis, get information about any specific niche’s sales and marketing performance.
Enabling the trend analysis helps in making data-driven decisions which means more success. For small businesses finding a pattern in product sales can be very helpful; small businesses can get data about the specific demographic and local locations. This information can be available in the regional trend analysis.
Why use trend analysis for your business?
Here are some benefits of trend analysis and forecasting. Using this forecasting, one can improve business growth and create a sustainable position in the market.
- Monitor the upcoming trends
- Stay updated with new opportunities
- Get the data-driven business strategies
- Find out the secrets of high-demand products
- Create a strategy based on the customer insight
- Understand the impact of trends on your specific niche
- Use research and produce actionable insights
- Check out what your competitors are doing
Trends are the slow burner
Yes, you heard it right; trends are slow burners. Continuous monitoring is important for businesses to grow. Ignoring the trends will throw you out of the race.
Many companies have faced issues in the past; Polaroid is a great example for the same. They ignored the trend of digital cameras, and as a result, they lost the business battle. Keeping your business updated with new products is mandatory.
What to monitor in trend analysis?
In trend analysis, monitoring both social and traditional media is important. To get a clear picture, keep yourself updated with every single detail. Listen to the customer with social listening and check for the most engaging conversations.
Check for the negative trends because these sentiments can help you plan better against any potential threats. This also helps in crisis management.
Types of the trends
Trend analysis is segregated into mega, macro, and micro trends. Understand these trends’ details and choose the best trend analysis per your business needs.
1. Mega Trends are significant trends that can affect society and businesses deeply. Sustainability, population, technology, and environment can make a huge difference in business needs.
To create a vital business strategy, it is important to keep an update on these mega trends and stay prepared.
2. Micro Trends are many, as the name suggests; these trends are lively and very useful. The best example of the same is Facebook. It was launched with initial exposure for the students. Later it became a trend and ruled the world of social media.
Example: Subscription-based meal boxes are the best example of micro trends
3. Macro Trends include the changes in customer behavior and affect the businesses in the longer run.
Example: Examples of macro trends are IoT, AI, and BIG data. All these trends change consumers’ overall experience and influence their shopping behavior.
Different types of trend analysis
As per the business perspective, five major trends are important to understanding consumer behavior and managing the market analysis.
Customer trend analysis
Customer or consumer trend analysis is based on the analysis of factors that drive product consumption. This analysis gives a deep insight into customers’ buying decisions and how they get influenced.
This trend analysis collects data based on opinions, preferences, choices, etc. With the help of these insights, you can analyze market conditions before the product launch or revise the product USPs per the customer’s needs.
Historical trends analysis gives the visibility of future trends and past data analysis. This data is based on the years, months, and days. Historical data shows how a trend has evolved and how it can help future planning.
Seasonal trends are temporary and emerge during special seasons like the new year, Christmas, and holidays. During these seasons, consumer behavior changes, and with the seasonal trend analysis, businesses can plan their strategies in advance.
Some great examples of seasonal trends are Black Friday, Cyber Monday, and Christmas. Businesses plan ad campaigns to target consumers these days and make more ROI.
By analyzing seasonal trends, businesses can plan campaigns and offers in advance. These special deals and offers help to generate more business on those specific days.
Geographical trend analysis includes the specific trend in any particular location. In this trend, analysis data is compared between different regions, states, and countries.
This trend analysis is important if you want to expand your business in any other country or continent. Understanding customer behavior in advance helps to plan better launch strategy and execution.
Social Media Trends
Evaluating analytics of Social media is the most popular and instream key for trend analysis as customers hit social media almost every few minutes. Customer behavior analysis gives great insight of their liking, choices, preferences, and demographics which are trackable over all the social media channels.
So, let’s look at some actionable tips and trends that you can include in your social media marketing strategy.
- Leveraging New Social Media Features: Latest social media features like Instagram Reels, Youtube Shorts, 30 Sec Video are worth trying to entice your target audience towards your brand
- Influencers Collaboration: For growing your social presence, collaborating with influencers can help you build brand authenticity and improve credibility in the market.
- Content is King: Though short videos are a hot trend this year, it is proposed that user-generated content and long-form content will have a major comeback in 2022.
We already have seen how analyzing consumer behavior trends can help you plan business strategy, modify your marketing communication, and improve your development strategy aligned with customers’ demands. This social media analysis is at the heart of Locobuzz’s ability to connect organizations with their customers, ensuring they are always up to date with the current trends is of the utmost significance.
And what could be more ideal than the omni-channel approach that will assist you optimizing your customer experiences at each level? Get in touch with us so that we can provide you a failproof solution to identify current trends to deliver a delightful customer experience.