Your business is not fully developed yet even after years? Maybe it happened because you don’t understand your consumers well! One of the right solutions to solve this problem is to apply the consumer insight concept to your business.
It is undeniable that consumers are the highest priority in running a business. These elements play an important role in future business development. To make it easy to understand their customers, companies usually apply the concept of consumer insight. Want to know more about this insightful concept? Keep on reading below to learn about consumer insight, and what you can do to apply it to your business.
What is Consumer Insight?
Consumer insight is the process of understanding the behavior, interests, and mindset of customers when buying products or services. Through this process, you will indirectly get feedback from customers to innovate and improve your product or service in the future.
Through customer insight, you can find out the right targets for advertising online or offline. The reason is because you will know which kind of customer will be interested in your product or service. That way, the ads that you post are relevant to the company’s business goals so you won’t experience waste. It also helps you to control financial problems and know the development of the company’s business.
If you are starting a business, you have to make sure you get the right customer insight beforehand. When you understand the wants and needs of consumers, your product or service will likely sell in larger quantities.
Why is Consumer Insight Important?
From the explanation above, it can be concluded that consumer insight is a concept that must be considered carefully by companies. Customer insight also plays an important role for businesses in the long term.
According to Microsoft, companies or organizations that take advantage of customer insights have managed to outperform competitors’ businesses by 85% in increasing sales power. Thus, you have to make good use of it so that your business can grow quickly. Here are other benefits that companies can get from knowing about consumer insight:
- Able to create a detailed persona and customer journey map with Insights
- Uncover social and cultural drivers that are overlooked in purchasing decisions
- Facilitating customized and consumer-centric marketing strategies
- Enabling brands to make data-driven decisions for the future of business
- Enable marketers to allocate and justify budgets across multiple business channels
- Ensure marketers are ready to adapt to changing buying trends
How to Optimize Consumer Insight?
After knowing about the detailed information and the importance of consumer insight in business, now you need to know what you can do to optimize your customer insight well!
1. Collect data
The first step to implementing this concept is to collect as much data as possible about your customers. Nowadays, data can be easily found through insights on social media, e-commerce, or even through Google Analytics. From there, you will find out the behavior, interests, and mindset of consumers who see and buy your product or service.
2. Consumer research
To optimize the application of the consumer insight concept, try to conduct consumer research. There are many ways to carry out these activities, such as conducting surveys, direct telephone calls, or even holding focus group discussions (FGD). Upon doing this, you will be better informed about what needs to be improved in your product or service.
3. Marketing management
Apart from consumer research, you also have to pay close attention to marketing management. The reason is through marketing management, you will know how to effectively execute the promotion or advertisement that has been executed for a product. Advertising is one of the right tools to communicate with customers.
4. Feedback
To optimize consumer insight, companies can request customer feedback. You can do it by sending surveys and questionnaires that can produce strong conclusions about product quality. Not only that but the results of the feedback collected can also be applied to future marketing campaigns.
However, the challenge is that customer feedback will not be sufficient to provide a complete picture of brand quality. This is because many customers may be afraid or unwilling to express their true opinion.
5. Third-party data
The next way to optimize consumer insight is with third-party data. If you don’t have access to customer feedback to make decisions, companies can draw insights from market research conducted by larger organizations with broader audiences. Being aware of customer trends in the industry can help companies to understand the pain points and problems faced by customers.
This aspect can also help companies in designing marketing campaigns, developing new offerings, and serving customers with greater empathy and understanding.
Because it plays an important role, it is not uncommon for several companies to appoint a certain position to handle customer insight. If you are the founder of the business and want to focus on the customers and how to acquire sales better, instead of having to care for or meet people as the head of the company, you can instead hire a nominee director to take your place.
A nominee director is someone who holds the position of director, who you can appoint to run a company in accordance with your wishes and direct. By hiring this special someone, you can instead focus more on the core aspect of your business and customers instead of being disturbed by the trifle that may follow you as a founder.
