In today’s age of high competition in the market; understanding the consumer’s needs and wants as quickly as possible, has become extremely necessary. Almost every brand is trying to understand its customer base better in order to provide them with appropriate products and/or services.
With the evolution of the Internet and online shopping, consumers have the force of incredible power in the palm of their hands. Consumers have a variety of product choices and they have the ability to shape today’s trends. Hence, studying their behavior, that is consumer insights, is important.
In this blog, you will see why consumer insights are important in marketing.
Table of contents:
- Why Are Consumer Insights Important?
- Benefits Of Understanding Consumer Insights
- Developing Personalized Marketing Strategies
- Personalizing The Consumer Experience
- Focusing On The Most Probable Buyers
- Deciding The Suitable Pricing
- Exploring New Opportunities
- Few Tips For Optimizing Consumer Insights Better
Why Are Consumer Insights Important?
Consumer insights allow businesses to capture and analyze consumer behavior and plan marketing strategies accordingly. With the rise of online shopping, businesses are able to fetch more personalized data about each customer, compared to traditional shopping center databases.
Website analytics software like Google Analytics helps businesses in tracking the right data and showing it in an understandable form. With the help of data analytics, a marketer can structure a suitable marketing strategy. Along with that, a marketer can also provide customized services to an individual customer to increase the consumer’s loyalty to the brand.
To see the benefits of understanding consumer insights, keep reading this blog.
Benefits Of Understanding Consumer Insights
1. Developing Personalized Marketing Strategies
As we discussed above, consumer insights provide us with insightful data about individual consumers. It focuses on factors such as what they buy and how frequently they buy, what efforts they take to choose a particular product, etc.
A marketer will get an idea about the psychology of their whole target market and can draw an efficient and reliable marketing strategy. Consumer insights also help the brand to decide their target audience by observing how people are responding to the latest trends running in the market.
2. Personalizing The Customer Experience
The key benefit of consumer insights is that brands can provide a personalized experience on their online platform. Customers always feel happy when they see brands customizing their user experience.
E-commerce websites are the greatest example of this benefit. E-commerce websites usually track the search history of the visitor and provide suggestions of what the user might want to buy accordingly. Not just this, even the buying pattern, and the choice of the product and brand are tracked. Analyzing all of this, e-commerce websites come up with personalized offers and deals which build customer loyalty and make the buying experience of the customer easy and comfortable.
Spotify, one of the most popular music-streaming apps in the world, also follows this method. They recommend various kinds of albums according to the music taste and artist choice of the individual. It has been seen as an excellent personalization strategy and a great way to retain the consumer base.
3. Focusing On Most Probable Buyers
It is not necessary that all those who interact with your business could become your customer. Despite this, a marketer should try hard to convert such people into potential buyers. However, this needs to be done smartly. Sometimes putting a crazy amount of effort into someone who just visited your website once, and is not at all interested in your product, can waste both, your time and effort. It can also harm the brand image as this may seem irritating to that person.
Consumer insights can help businesses identify the right target audiences, in cases just like this. With the help of it, a marketer can track and analyze how much they are invested in the product and brand ideology. They can also track what products a consumer has bought from which brand. In this way, consumer insights can help brands channel their efforts to the right potential consumer.
4. Deciding The Suitable Pricing
Sometimes, a product might suit the needs of a consumer, but still, it does not get sold because of the high price of such products. A right product with the wrong pricing strategy can disappoint consumers and it can have a negative impact on sales.
Thankfully, consumer insights can provide an answer to this. After analyzing the competitor’s pricing and the response of the consumers to it, brands can decide their product pricing and make sure their products stand out in the market.
5. Exploring New Opportunities
Consumer insights are a great tool to learn about the current sales performance and the overall consumer response to the brand. At the same time, they can also help brands look for future opportunities.
Data is the key here. Through analysis, a marketer can identify untapped potential target markets. It can also define which new products or services are going to boom and should launch before the competitors. Product testing of that same product on the focus group chosen with consumer insight is also possible.
Few Tips For Optimizing Consumer Insights Better
- Always look for search terms visitors use: This will help a marketer in building an SEO strategy with proper keywords.
- Analyze the primary motivation: Always remember why that individual visited the website first.
- Play some quiz: Putting a quiz on your platform can help the business in gaining direct and accurate consumer insights.
Consumer insights can help a business in increasing sales and increasing the number of brand-loyal customers. It also helps in getting information about the untapped market and consumers.
Using this tool optimally can provide the brand with a competitive advantage. Although almost all brands are utilizing their consumer insights, the ones who follow what their customers need will win the race!