What Is Consumer Insights (Customer Insights) With Examples & How To Use Them In 2023?
Consumer insights also known as customer insights provides data which is the most powerful tool today for present day businesses. Do you know that by collecting, and analysing useful data, you can make your business strategy much more effective and useful for your customers? In fact, 90% of consumers prefer custom content and find it useful. of consumers prefer custom content and find it useful. In this article, we are going to learn about consumer insight in marketing and its benefits.
Customer Insights is the knowledge and interpretation of consumer data, actions, and feedback into conclusions that can be used to improve product development and customer service. Customers’ wants and requirements can be translated into actionable insights that can be utilized to increase functionality, develop new products, and provide consumer advantages. To connect customers’ requirements with a company’s commercial goals, customer insights are gathered.
Data collection is the first step towards customer insights. Market research, customer service statistics, focus groups, purchase history, and product reviews are all good places to look for consumer insights. Social media analytics software can be used in collecting data. After that, the data must be transformed into information that can be used to make business decisions. Customer’s fundamental motives and aspirations, as well as future consumer projections, should all be revealed through data interpretation.
Table of Contents
Why are Consumer Insights important?
So, as you see, multiple big and famous brands have implemented consumer insight marketing to build a strong and better brand image and have sustainable business growth. But if you still do not have the full picture regarding why consumer insights are important, here is why: knowing what a customer wants and needs is vital to your business’s success.
Consider this. Customer insights help your business teams better understand how customers think about and feel about your products and services. Knowing this allows you to develop profound customer empathy that goes beyond only understanding what customers need, but also why they need it.
Not to mention, listening to your clients in this way allows you to develop ever-improving experiences that last. It may be a global pandemic today, and something quite else tomorrow. Nonetheless, the idea is that if you’re continually gathering and analyzing client data, you’ll never have to take a chance.
How to use Consumer Insights?
Customer insights can fulfil various applications and you can use it to accomplish tasks including:
- Developing strategies for how to present existing help center or assistance information. Improve your customer service in a 1:1 manner which opens up the possibility of an enhanced, continuous customer experience.
- Roadmap, Rates, etc: Consumer insights allow your hard-earned understandings blaze a trail in decision making is crucial to future-proofing your company.
- Customer insights helps you select which types of products to concentrate on creating or expanding in the future and choosing what attributes to add and/or get rid of from your present business strategy. Upgrading products with new features or tools after observing the challenges or issue areas consumers have reported.
- Enter new markets using consumer insights. Data on sales and customer behaviour could help you find ways to tap into new markets. You could discover an entirely new group of people that you could not reach prior to.
- Sending advertising as well as marketing items to particular segments of customers that will resonate with the content. Information about customers like browsing and purchase histories, social media chats and online reviews can allow you to target specific ads and offers to consumers in accordance with their experience of your company and brand.
Consumer Insights influences Digital Marketing
Consumer insights is a factor in every aspect of the process of digital marketing as well as the message that is included within the material, the kind of content that is created, as well as the place where it is presented. These customer insights can help you determine the content that resonates with customers and how to communicate with them.
Since the digital world is constantly evolving, having a better understanding of your clients is crucial to every marketing strategy. If you don’t know what your customers want it’s easy to become distracted by an emerging trend or concentrate all too heavily on what your competitors are doing instead of what your clients want to experience.
With all the different platforms in the market nowadays, it’s difficult to figure out where your brand should exist digitally. Do you have a site that is sufficient or do you miss potential customers because you’re not using social media? If you sign up to an online social network which one is the best? The consumer insights will help you determine what channels your intended users are using.
As technology develops, consumer behaviour is rapidly changing and these customer insights will assist you in adapting to stay relevant for your brand.
4 Examples that bring Customer Insights to life
So now that we have an idea of what consumer insight is, let us take a look at some important consumer insights examples which would help us understand the concept with more clarity.
1. Walmart using consumer insights
Sam Walton, the CEO of Walmart, says, “I’m going to put the vast stores in the middle of nowhere.” What was his customer insights, then? He had realized this since the Eisenhower highway bill had upgraded the United States’ roadway infrastructure. Traveling large distances to a supermarket is now more convenient for the customer.
Additionally, shipping your products to the store is much less expensive. He understood that if you built a large store with fewer customers, but they came from a much greater radius, it would be more profitable. This was the cornerstone of Walmart since there was ample demand and, more crucially, no competitors.
2. To identify the correct flavors, Organic Valley looks at consumer feedback
A fast-paced food and beverage company constantly developing and marketing new items requires some assistance in making decisions. Attest provided that assistance to Tripp Hughes, Managing Partner of Consumer Strategy at Organic Valley.
He used it to spark creativity, accelerate iteration, and pinpoint the most successful messaging. He created Egg Bites, a delightful new breakfast product, using consumer insights.
3. Kodak's easy to use customer insights strategy
Kodak began to enter the market for digital cameras and they discovered an anomaly. The reason for this was that even though the cameras were analog, the film were used in the home, 75% of photos were taken by women due to one of the family’s photo keepsakes.
With the camera that they used, they discovered that very few images were actually taken by women, the camera was difficult to operate as it had lot of buttons and it was complicated to connect them to the computer on the internet.
So, they simplified the whole process and developed simply the basic idea of the share camera that is easy to use and the share gallery that is accessible which was the basis to their success “The Ease of Use.” This is why the anomaly is a good location to start searching for consumer insights.
4. Little Moons identified their desired customer base using consumer insights
Little Moons, a Japanese ice cream brand, saw a tenfold spike in sales after going viral on TikTok. How could they capitalize on the momentum once the views slowed?
They needed to know who is willing to purchase Little Moons regularly. Is that what the typical TikTok user looks like? They dug deep into their consumer data to figure out who was in charge of the dessert aisle.
Get started with Customer Insights
- Establish what you intend to learn: before carrying out research study, make sure you understand what and also just how you’ll get your data.
Identify your resources: Exactly how will you acquire information, who is more likely to collect and evaluate consumer insights? Ensure you have sufficient time and also employees committed to getting as well as using your customer insights.
What’s your collection technique? How you’ll accumulate information is very vital. Are you targeting a certain target market? Existing customers? Will you use a study? A focus group? These are necessary inquiries. Locobuzz’s real real-time insights tool is an excellent method to get started.
- How will you utilize the data? Ensure your efforts are not going to waste. It is essential to plan and also think ahead. When you have the data, begin considering what departments, procedures, techniques and initiatives could be influenced.
Customer insights are penetrating the prominent and observing things in a new light. They are truly succeeding by tapping into the thoughts of both customers and head blenders. Locobuzz is one of the best digitalized customer experience management softwares that improves your business and allows you to develop deeper connections with your customers than ever before.
Locobuzz with the help of its various tools like social media management tool, social media chatbots, competitor analysis tool , brand monitoring tool, sentiment analysis tool, etc. derives real-time insights with public chatter to help brands increase the lifetime value of the customer.
So, to summarise the entire article, consumer insights help brands to understand the interests of their consumer base. With this understanding, brands can improve the quality of engagement through creating personalised content, products, or services.
Frequently Asked Questions
Customer value is based on a more in-depth and better understanding of customers, or better customer insight, according to a core premise in marketing and customer values.
If the herd (group) is moving in one direction, the consumer insight is a way of looking that others have not only not seen but also consider counterintuitive. You’d run oppositely, which could be instructive at times. This, I believe, is one method of obtaining consumer insights.
Apple Inc., Walmart, Kodak, and the Napster vs. iPod debate are just a few of the most well-known examples of insight. So go check that out as well to assist you in understanding this topic in greater depth.
Consumer insight is critical for a firm’s survival against its competitors because the less a company understands its customers, the more difficult it is to stay in business. The further you are from the end-user, the more critical it is to understand them.
Customer value is based on a more in-depth and better understanding of customers, or better consumer insights, according to a core premise in marketing and customer values.
Market research tells us what is happening, whereas customer understandings inform us why it’s happening, as well as will certainly permit us to make modifications to our business in order to enhance consumer fulfillment, client retention and also implementing better strategies.