Customer Insights are “the comprehension and interpretation of customer data, actions, and feedback into conclusions that can be used to improve product development and customer service.”
These insights assist firms in obtaining a 360-degree consumer view in order to better understand customer behavior while making purchasing decisions.
Customer insights can be gleaned from a variety of sources, including customer service data, product and service evaluations, market research (such as how weather affects purchasing and where people spend their money), purchase history, and sentiment.
Understanding your client base means success, thus customer insights are important. You may garner your clients’ sympathy by understanding how they feel, what they want, and why they want it.
Now Let’s Understand What ‘Insight’ Is
The word “insight” is described in the dictionary as “the capacity to get an accurate and deep, intuitive understanding of a person or thing.” Data-driven consumer insights provide companies and digital marketing firms with exactly that.
Consumer insights, while narrowly defined by data, cover a broad range of consumer behaviors, from where the majority of shoppers start their buying journey to which lead sources convert the most customers.
The Importance of Customer Insight
Consumer intelligence can help a company better personalize and adjust products to their customers’ requirements, wants, and demands. According to Microsoft, companies that use consumer behavior to develop insights outperform their peers by a huge percent in terms of sales growth.
These data can be used to extend product/service offerings, build new marketing strategies, construct thorough customer personas and customer journey maps, and improve existing offers. Because the goal of utilizing customer insights is to improve the customer experience, it can also result in increased income.
And because it delivers so much data and is easily trackable with the correct tools to collect and analyze the data — online consumer behavior provides us with the clearest vantage point.
While connecting online data to offline sales is the final step in determining the true ROI of marketing efforts (if you’re a brick-and-mortar store or provide an offline service), digital data provides more than enough consumer insight into the minds and hearts of your customer base to significantly improve business performance.
Benefits of Customer Insight Marketing
You may create relationships with your customers, better understand the connected consumer, and achieve meaningful and quantifiable results by leveraging customer insights to influence strategic and tactical decisions. Retail analytics and customer insights can also provide additional benefits and practical activities for CPG companies, such as:
• Predictable Turnover: Have a better understanding of predicted revenue in the future and find areas where you can improve customer service and maybe reduce churn.
• Increase Customer Lifetime Value: Simply defined, the higher the lifetime value of your customers, the more money your organization may expect.
• Personalise Experiences: In the retail industry, customers are increasingly expecting personalized interactions and experiences. In fact, according to a poll conducted by Epsilon and GBH Insights, 80 percent of respondents want shops to personalize their experiences. You can more effectively deliver personalised experiences by harnessing customer insights.
• Improved Stock Planning: You may more correctly anticipate the amount of inventory you’ll require by using customer insights, particularly sales data. Your firm will be less likely to have surplus stock that needs to be marked down if inventory levels are more accurate.
• Selecting the Proper Product Cost: The best product price is whatever your customers are willing to pay. However, on average, 30% of pricing decisions made by retailers each year are incorrect, resulting in revenue loss. You may successfully determine product pricing that will offer the maximum returns using retail analytics, which provides greater customer understanding.
• Offers Focused at Customers: With deep insight into customer purchasing history and other relevant data, you can target specific promotions to customers who are most likely to take advantage of them.
• Grow into Emerging Businesses: Better customer and sales data will have an impact on many aspects of operations, including sales success. With this information, you can figure out which new markets to pursue and which sectors aren’t providing a sufficient return on investment.
Types of Customer Insights
It’s a little odd to see several types of customer information. However, it is critical to understand these sorts so that you can tailor your evaluations to your company’s needs. Customer insights can be divided into five categories:
• Use Customer Insight to Your Advantage: This information will show you how people use your product and how frequently they use it. People may utilize your goods on a weekly or daily basis, to put it that way.
• Insight into Customer Loyalty: This is a measure of how satisfied customers are with your goods. The Net Promoter Score (NPS) – which shows how much of your customer base endorse you – is a wonderful KPI to use to see this. You can send a questionnaire to your consumers that include questions about how likely they are to recommend your product to others.
• Customer Insight from Firmographic: This is something you should pay particular attention to if you’re a B2B organization. The characteristics of the organizations that profit from your service or product will be revealed via firmographic customer insight. The industry of the company, its size, and its location are all included in this information.
• Insight into Customer Service: It’s an easy one to figure out. This information is very important to your support team – specifically, the quality and context of client interactions. This information will show you what your consumers say, what they want to know, and how happy they are.
• Insights into the Competition: It is critical to position oneself in relation to your competition. That is the topic of this insight. You’ll learn how your competitors conduct their businesses and how you may differentiate yourself from them.
If you want to succeed in your industry, the most vital data is customer insights. You will undoubtedly be one of the big players in your market after you have gathered the essential tools and discovered the ideal dataset.