What are consumer insights?
Consumer insights refer to understanding what your public thinks and feels about a particular product, brand, or service. They are usually achieved through qualitative and quantitative research that can provide consumers with more information about your brand’s performance.
In today’s hypercompetitive world, brands must evolve at lightning speed and stay relevant in the face of ever-evolving customer needs. There are more brands than ever before, vying for the same share of mind and wallet.
The retail landscape is changing so rapidly that even a successful brand can quickly go out of business if they don’t continually keep pace with trends. To succeed as brands, companies need to invest in something that allows them to understand their customers better every day.
Why Should You Invest In Consumer Insights?
There are many benefits to investing in customer insights:
Determine Churn: The key to keeping customers engaged and then satisfied is the ability to determine what they want. When brands analyze how customers use your product, they can understand better what may be causing them to churn or cancel their subscription or purchase. This allows brands to direct their efforts into bringing in new customers who will have a better experience with your product and keep existing customers happy.
Provide Individualized Experiences: One of the best ways to differentiate a brand is to provide customers with a personalized experience. If a brand knows what you are interested in, it can tailor the content, offer, or interaction to make you feel more appreciated and reciprocate that loyalty.
Increase Client Lifetime Value: Brands should look for ways to increase the amount their customers spend with them. When brands understand what their users desire, they can provide them with more personalized products or services they’ll want to continue purchasing.
Improved Inventory Management: This results in reduced stocks and fewer units shipped, ultimately increasing profits. This can be achieved with more product design efficiencies while increasing delivery volumes and velocity.
Establish Ideal Product Price: As a result of forecasting customer demand with better accuracy, companies can determine when to adjust prices for new or existing products based on the fluctuating needs of consumers.
Impact Sales Channels: The insights gained from customer feedback help companies optimize the actions of their sales channel, including where and how often it reaches potential buyers. This ultimately leads to a higher conversion rate and lower cost-per-sale.
Expand Customer Base: If consumers are happy with your product or service, they will be more likely to share it with their social network, family members, and friends. This will ultimately lead to more revenue from direct sales, affiliate referrals, and more.
To effectively implement consumer insights, a company needs to understand what they know about their customers and what they don’t know. However, there are also many challenges to overcome when shifting from a traditional marketing model to a customer-centric approach. Ideally, a company would know their customers better than they know themselves. In this way, they could ensure that the efforts they are investing in are causing a positive impact on their customers.