The concept of consumer insights is at the core of every brand strategy; it’s what makes a company stand out from its competitors and enables them to thrive in an increasingly competitive economy. Brands need to know more about consumers, their needs, wants, and behaviors, not just how they behave but why they do so. This enables a company or brand to make informed decisions that will help them understand where and when they can best win with their products and services. This article discusses why brands need to know more about consumer insights.
- Refining personas
Consumers enable a company to serve this audience better when they have a clear picture of who they are. A strong understanding of the customer life cycle allows companies to build an accurate picture of each prospect. The need for greater insight into customers’ needs, aspirations, and motivations becomes critical. By knowing their interests, values, and beliefs, a business gains valuable information about the individual prospects within its target market. When a company starts to create different personas, which may include a specific sub-segmentation by gender, age group, socio-economic status, education level, marital status, household income, etc., it can begin to determine what attributes are most important to each segment and identify opportunities to tailor messages accordingly.
- Understanding behavior
Knowing what motivates people to help businesses decide whether to pursue certain initiatives and whether a particular initiative meets the needs of their target market. Understanding behavior and motivations also help companies develop more effective advertising campaigns and other marketing tactics. This is because the same audience may respond differently to different media channels, and various methods can be used to motivate them. For example, in an online environment, people tend to buy items that they see others using or mention on social networks like Pinterest than those they read about or hear about. In addition, the same message does not always get through across all platforms and devices. Therefore, learning the reasons behind someone’s buying decision helps you choose your next creative strategy and provides the necessary data for future planning.
- Using data to drive action
Once brands understand their audience, they can use this knowledge to inform business decisions. For instance, if a company learns that a certain demographic wants a particular product, they should consider including these features in their upcoming versions. Additionally, once a business has started gaining insight into their customer base, they should set goals to learn more about their audience and use this data to guide future strategic decisions.
- Establishing campaign benchmarks
Consumers enable a company to measure the success of a communication program easily. They can observe whether a particular advertisement or marketing campaign got attention via online platforms such as Google Analytics. However, brands must ensure that such measurements reflect genuine interest rather than simply being a result of spontaneous activity. Once a company establishes benchmarks, it can track its progress towards reaching its objectives.
- Developing cross-platform strategies
The digital landscape continues to evolve rapidly, creating new challenges for marketers and communications professionals. Today, customers access websites and mobile apps across multiple screens and operating systems. As such, it is imperative for a company to create content that works across these different platforms. For instance, a company could start with a website; however, consumers quickly leave a site if the content doesn’t engage them. While a user might finish reading an article on their phone, they will likely forget everything mentioned after trying another application. Thus, a brand must know how to communicate effectively on any platform so that there isn’t confused when it comes to sharing one message across all avenues.
- Analysis of Competitors at an industry level
Consumer insights enable a brand to benchmark itself against its competitors. It provides a deeper understanding of what elements of a competitor’s marketing programs are successful and which ones aren’t. Such analysis highlights areas where the brand needs improvement. The information gathered allows them to focus on improving the most critical areas for growth. An efficient way is by conducting competitive analyses at both macro and micro levels. At the macro level, a consumer insights professional assesses the overall state of competition and analyzes trends. The micro-level assessment focuses on product attributes, positioning, pricing, distribution, and marketing efforts. By comparing their results with those obtained from competitors, a brand gains valuable knowledge about how they rank among the rest of the marketplace. This data can be useful for identifying opportunities, developing new products, adjusting prices, optimizing channels, etc.