Consumer insights are learnings or inferences made by analyzing consumer data.
A part of market research, consumer insights are considered critical to marketing for helping businesses —
- Deliver personalized customer experiences
- Run hyper-targeted campaigns
- Understanding their ‘why’
- Develop a dynamic, ever-evolving marketing strategy
And how is that?
Let’s take a look.
Deliver personalized customer experiences
Recently, PwC found that 42% of consumers would be willing to pay more for a better experience.
No wonder Forbes found that 73% of businesses delivering just that drive more sales than businesses that don’t.
The simple truth is that your customers love to be heard.
And what they want can only be found out through consumer insights.
With that knowledge, you can deliver experiences that are personalized for them.
Think of advertisements, products, services, marketing campaigns, and much of what you have to offer unique to their tastes.
Such an approach to marketing is consumer-first, as one should be. And it is driven by consumer insights, outlining their likes and dislikes, what intrigues them and compels them to be intrigued again and again.
And why would they keep coming back?
Because consumer insights enable you to show them just what they want to see.
They become hooked. Or as others may call it: loyal.
Run hyper-targeted campaigns
The knowledge of data-driven insights outlining your customers’ needs and wants enables you to create campaigns that target an exclusive demographic.
What’s more, since the insights can be carved out for different demographics, consumer insights enable marketers to effectively target very specific populations with very specific content.
That’s right. No more hit and miss.
Though what’s really incredible is that not only can marketers run hyper-targeted campaigns — which are more likely to be successful — but by doing so, by making targets so narrow, they take fewer risks.
Well, the higher the odds that your campaign will succeed, the lower the odds that you will lose money.
Consumer insights save marketers money.
Lots of it.
Understanding their ‘why’
When consumer insights illuminate your customers’ needs and desires, they offer a window into what they might need or want in the future.
If you discover a surge in the sales of books, it is quite likely that those very customers will also buy more books of the same kind or a bookshelf.
Consumer insights, therefore, enable marketers to up-sell and cross-sell their products or services.
Further, customer analytics answers the question of why your customers buy or don’t buy what you offer.
The knowledge of their pain points, their expectations, can be leveraged to innovate to redefine your marketing strategy.
We are talking about marketing that strikes a deeper chord, marketing that directly, more effectively addresses their why.
Once you have understood their why, you can make products better suited to their needs, thereby improving product development. But also, you can improve sales communication to better drive the point home.
Remember, a consumer-first approach.
Develop a dynamic, ever-evolving marketing strategy
A marketing strategy founded on consumer insights is future-proof.
Needs change. Wants change.
But the changes are reflected in consumer data, and hence, consumer insights.
A good marketer understands that making the most of consumer insights is a continuous process.
A good marketing strategy, therefore, is a dynamic, ever-evolving strategy.
To keep up with the changes, marketers need to be always at it, collecting and analyzing consumer data, always adjusting and improving their marketing strategy.
That’s what defines the best. They shun complacency. They keep going.