Leveraging consumer insights for business growth
Understanding what customers want is the key to success. Therefore, consumer insights are indispensable when devising a marketing strategy.
It was not so long ago that marketers had to conduct time-consuming and costly surveys to understand what their customers wanted. Now, brands have access to an incredible wealth of data that gives them unparalleled insight into customer preferences. Essentially, consumer insights are extracted through analyzing customer data. This intelligence enables marketers to deploy timely, relevant communications with greater nuance and agility. Therefore, with quality data, companies can leverage actionable insights that lead to enhanced customer experiences. In this article, we outline the benefits and detail how to implement a data strategy. After all, when conducted correctly, a data project should dramatically improve the effectiveness of marketing content, and, thus, increase profits.
Build a foundation
Today, commerce generates an enormous amount of data. Therefore, before beginning a data project, it is essential to define a specific objective. Without a clear direction, there is a substantial risk of becoming ‘lost in data’ – which can lead to inefficient or futile projects. Furthermore, the project team needs to identify their resources. For instance, they need to decide how they will obtain data, how it is collected, and how this process is managed. As mentioned, datasets can be unwieldy and complex, so it is critical to have a data management protocol. Once this system is in place, it is prudent to refine further. For instance, one should ask whether the project targets existing customers or if the team tries to improve acquisition. Depending on the project’s objectives, the parameters of the data collection strategy will shift.
Monitor campaign performance
Perhaps the primary concern of research around consumer insights is the return on investment of each campaign. Obviously, a significant indicator will be the number of conversions from a specific ad placement or communication. However, there is ancillary intelligence that is well worth analyzing. For instance, social media, blogs, and review websites are valuable resources. These areas help marketers monitor campaign reception and engagement, which will enable them to capitalize on emerging opportunities in the long-term. Furthermore, these resources can also help marketers better understand brand perception, uncovering the principle drivers of consumer engagement.
Analyze consumer demographics and market trends
Furthermore, consumer insights can help companies better understand who they are communicating with. By analyzing data from multiple sources, businesses can identify their customers' nationality, age, and gender. However, customer insights have come much further than simple demographics. Now, organizations can uncover increasingly detailed information about their customers’ lifestyles, preferences, and desires. Through more granular segmentation, businesses can identify new markets and emerging consumer trends. For instance, aggregating consumer insights from user-generated content can significantly aid in understanding customer motivations, industry shifts, and map the competitive landscape.
Develop stronger strategies with consumer insights
Big data presents incredible opportunity, however, it also presents significant challenges. Now, marketers have to monitor customer behavior across several channels, as well as map, analyze, and compare this data. From here, they need to channel these insights into an informed, evidence-based communications strategy. Yet, the benefits of this complex process are enormous. Not only does this intelligence facilitate a meaningful dialogue with consumers, but also enables them to deploy content to the right person at the right time. Through monitoring customer behavior across various channels, businesses can develop more creative content strategies that provide a better return on investment.