How to Use Consumer Insights to Grow Your Business
Imagine being able to know what your customers want and being able to make them happy with your service. With consumer insights, this is possible.
What are consumer insights and how can you use them to grow your business?
What you should know:
Consumer insights are increasingly used to make better business decisions
Gather data from your customers allows you to know them at a deeper level, tailor the services you offer to give them a better experience, and establish brand loyalty as a result
There are several key things you will need to obtain consumer insights such as an insights team, a strategy, knowledge in research, and systems that can increase data quality
What are Consumer Insights
A consumer insight is an interpretation of the data gathered by a business regarding their customers (or the consumer market in general). It is used to help businesses gain a deeper understanding of how their target audience (or future, prospective markets) thinks and feels.
According to Google Surveys, 40% of marketers use consumer research to drive decisions.
By analyzing human behavior and gathering data regarding their purchase decisions, businesses are able to really understand what their consumers need and what they prefer above anything else. More importantly, it allows companies to understand why their target audiences feel this way.
When research about consumer insights is conducted properly, it will help companies determine the best ways to communicate with their target customers.
In a turbulent market where it is highly likely for customers to experience a change in consumer behavior, companies that have conducted market research to gain insights about their customer base can adjust their marketing strategy, remain relevant, and therefore increase sales.
In short, consumer insights can help you shape your business strategies to serve customers better and stand out from the competition.
What You Need to Collect Consumer Insights
Systems for Data quality. The data you will collect must be precise and accurate, free from biases, and have good quality. When asking questions to the target audience, the questions should be easy to understand. Using software built to gather data from customers can also improve the data collection process and data integrity.
Insights team. A dedicated team must be available to collect and analyze responses and what the data is telling you.
Strategy. A strategy must be crafted first to collect good quality data and how the insights team can continue to collect this. The strategy must also include how this should be reported to the company decision-makers.
Consumer Research. The overall act of gathering customer insights must adhere to strict research guidelines to ensure that the analysis and results of the research are reflective of real-world happenings.
Four Types of Insights
There are four types of insights you can get from conducting research and analyzing the market:
Brand awareness and brand perception
Demographics are the most basic and important information you can gather from your target audience.
Examples of demographics are:
Position in the Company
Demographics allow you to have a deeper understanding of who are buying your products and services, where they are located, and what types of companies they work for.
It allows you to craft better marketing strategies to enhance the consumer journey and overall improve customer satisfaction.
Every customer has a unique set of personal interests and goals that motivate their actions. When you are able to identify these interests and customize the experiences and products you offer along with these interests, you will be able to resonate better with your customers and impact their lives. This creates brand loyalty.
Brand Awareness/ Perception
Any data you can gather from your customers about your brand can let you determine how they perceive it. For example, if you’re a luxury brand, are your target customers responding to this image or do they think you’re irrelevant? Some questions can be tailored to elicit the answers you think are important in crafting your brand strategy.
Knowing your customers’ motivations and what impels them to make a purchase from you over any other brand can help you position your products better.
Needs, preferences, and interests are several “purchase drivers” you can identify based on their responses during research or focus group discussions.
How Companies Use Consumer Insights
These are the ways companies use consumer insights to grow their business:
Data analytics is used to increase the effectiveness of marketing campaigns
Analyzing data gathered from the research can help you penetrate new markets or niche markets
Interpreting consumer data allows marketers to identify needs that competitors have not identified yet nor consumers themselves are aware of
Consumer insights allow businesses to be more unique, fresh, and impactful when it comes to dealing with customers
What You Can Do
To make it easier for you to gather consumer insights and make data-driven business decisions, use technologies like the Saphyte ecosystem.
It hosts features that can boost your sales, marketing, support, and team coordination, so you can streamline your business processes.
Saphyte allows you to gather data from your customers automatically and without hassle. All you got to do is configure the system to send emails to customers in the important stages of the buyer’s journey and reward your customers’ participation.
You can also use the Saphyte ecosystem to generate reports automatically so you can make better business decisions.
Need more information? Contact our support team now.