What are Consumer Insights?
Consumer insights are an integral part of running a successful business.
They are at the very center of providing better experiences for your customers and gaining a deeper understanding of their needs and preferences, which is crucial in a world where even the smallest edge over the competition can tip the scales.
However, figuring out the exact process behind gathering consumer insight isn’t always easy, especially for companies that don’t have a lot of experience dealing with customer data.
So, to help you get started, let’s figure out what consumer insight is, how to perform customer insight research, and everything else you might need to know.
What Are Consumer Insights?
A simple consumer insights definition is that they are a combination of trends or behaviors that are identified from data, analyzed, and then used to make informed decisions when running a business.
By collecting data and analyzing behaviors, companies can discover the motivations behind the different actions of their audience, which in turn helps a company learn how to tweak their approaches, branding, products, or any other part of their efforts, to inspire a particular action.
If executed correctly, consumer insight analysis can become the single most powerful tool in a company’s arsenal for improving communications and gaining an advantage over the competition.
However, there are plenty of challenges that come with collecting and analyzing data, which is why it’s essential to follow a structured process and effectively execute each step.
How to Collect Consumer Insights Properly
Performing thorough consumer insight research depends on only a few integral factors.
First off, in order to draw out useful consumer insights, you need to have data that is reliable, high quality and accurate.
Once you have useful data, you will need an analytics team that can make sense of the information that you receive and draw actionable conclusions.
Having people that have the expertise and understanding of consumer data is absolutely crucial, so if you feel like you don’t have these types of specialists in-house, you should seek professional help from outside of your company (that’s where the team at Luth Research comes in).
Once you gain insights, the biggest challenge becomes actually using the information—you need to be willing to trust the data and implement the necessary changes.
Over time, you’ll likely be able to segment your audience and provide a more personalized experience, which can help you broaden your reach and improve the performance of your marketing campaigns.
How Can Consumer Insights Be Used?
Now that we’ve figured out what customer insight is and understand the integral parts behind it, we must look at specific ways these tools can be used.
One of the most common ways consumer insights can help a business is by providing crucial data for improving customer journey maps. The more accurate the map, the greater your team’s understanding of trends, successes, and gaps to fill.
As you learn more about your customers, you’ll likely discover gaps and areas that need improvement. Consumer insight can lead to providing more relevant content, developing more engaging communications, and improving the overall customer experience.
As you understand the different segments of your audience, you can also personalize their experiences and gain an upper edge over the competition, using marketing that is relevant and memorable for a precisely targeted audience.
Consumer Insight Research vs. Marketing Research
Consumer insight research and marketing research are terms that are easy to confuse, but they actually describe different processes, both of which are important to developing effective marketing strategies.
Marketing research involves analyzing entire markets. It helps figure out how large a market is, who the main players are, how fierce is the competition, as well as what types of customers are primary targets.
Meanwhile, consumer insight research focuses on the how and the why of the equation. It provides specific steps or ideas that can be implemented based on objective data.
Consumer insight helps understand the underlying processes behind consumer behaviors, allowing a business to adjust the marketing approaches to meet the expectations of the customers they’re trying to reach.
What Makes Consumer Insights a Powerful Marketing Tool?
Consumer insights is one of the most powerful tools that modern businesses can use for growing and improving performance.
The tangible and actionable information can improve any campaign as, in the end, businesses that understand their audience better have a significant advantage over those that operate in the dark.
By tuning into the conversations that your customers are having through consumer insights, you can not only develop more effective marketing strategies, but also position your brand in a way that’s more appealing and more in line with your ideal customer’s expectations.
If you aren’t yet using customer insights in your business, you are likely missing out on a huge opportunity for business growth, marketing strategy success, and overall customer satisfaction.
At Luth Research, we have the expertise and the tools necessary for delivering reliable consumer insights around the customer journey with audience insights, market research panels, behavioral tracking, and more.
If you want to learn more about how these tools can be applied to your business needs, please call us at 800.465.5884 or fill out a form via our contact page. We’ll guide you through the entire process.