Monitoring Consumer insights is nothing more than knowing what your consumer needs. Knowing the customer forms the basis for any business strategy. And it should be part of any ongoing business strategy. Running a successful business comes from having a loyal and strong customer base. Building that customer base requires forming long-lasting relationships. And consumer insights help you dive deeper into the psyche of your audience and judge what motivates them. Despite all of this, one of the most asked questions among users remains “Are consumer insights legit?” The answer is – actionable insights are legitimate and help your business grow.
What are Consumer Insights?
Before we delve into the legitimacy of consumer insights here’s a look at the concept from a distance. What are consumer insights? These are conclusions drawn from the opinions of your customers. Insights derived from social media comments and mentions tell you a lot about your customer’s behavior:
- Why do they buy/don’t buy your product?
- What product features do they like/dislike?
- Do they plan on coming back for a purchase again?
- How likely are they to recommend your product to someone else? And so on…
Imagine having a definite answer to all these questions! It is a goldmine of valuable information.
The Difference Between Consumer Insights and Market Research
In the previous articles on our blog, we spoke extensively about how consumer insights drive market research. Market research is about gathering information about the market. It involves reports and statistics revolving around market sizes, competitors, and customers. Market research tells you more about the quantitative side.
Market research tells you if your competitor has a higher market share. Consumer insights on the other hand dive deeper. Consumer insights will help you understand why your competitors have a larger market share. What do customers like about them that your brand might be lacking in!
In simpler words, market research tells you what is happening while consumer insights put the why in perspective.
How does it Help you?
From the previous section, you know consumer insights complement market research. And social marketing intelligence tools like social listening can help you use these insights to amplify your marketing efforts. Before you get started with consumer insights here’s a quick look at what you can achieve with its help:
- Helps you analyze your target audience
- It helps you create a personalized customer experience
- Helps you identify areas of improvement for your business
Analyze your Target Audience
Like we mentioned earlier, knowing your customer is the basis of any business. And listening to what people are saying on online platforms like social media and discussion forums gives you genuine information.
Moreover, knowing the wants and needs of your target audience helps you with all the further processes. When you know what they like, you can successfully design an experience based on their preferences. This in turn makes them loyal to your brand and spread positive word of mouth. Investing in knowing your audience could go a long way in bringing you more business.
Create a Personalized Experience
If you have been using social media marketing and advertising to promote your brand you already know about the tremendous competition. According to Accenture’s study from 2018, “91% of consumers are more likely to shop with brands who recognize, remember, and provide them with relevant offers and recommendations.”
Delivering relevant recommendations is a part of personalizing the message you send to your customers. And in order to understand these preferences before you can recommend them, you need customer insights.
Identify Areas of Improvement
Forbes published a story about how Wayfair, an online home-goods retailer, used consumer insights to its advantage. Wayfair conducted consumer research and their analysis showed that they needed to improve their overall customer experience. They developed an app that allowed customers to take pictures of their favorite items and give the information related to it. This allowed Wayfair to take intelligent design changes based on the recommendations.
As a result of this practice, Wayfair saw a 50% bump in their customer retention rate the year they launched the app.
If you’re looking to get started with consumer insights, make sure to establish your goals first. Consequently identify your resources like where you will acquire your data, what metrics you will set up, and so on. Once you have the data, use it to process strategies and decisions. If you require help with the data collection and analysis, social media intelligence tools are always available!