What are Consumer Insights?
Consumer insights is a term that refers to any data-driven insights about consumers, which means surveys, polls, and financial and business records from databases or data warehouses. Consumer Insights is an emerging solution in the advertising market focused on digital media.
The primary purpose of customer insights is to improve the performance of advertisements in media. In this context, a tiny portion of the entire picture is usually covered, but it can be precious in understanding consumers.
What You Need to Collect Consumer Insights Correctly
1. Good Data Quality
Data is an essential part of customer insights. This data can be generated from online and offline surveys, focus groups, and in-depth interviews with experts and consumers.
2. A Dedicated Analytics Team
An analytics team capable of planning and tracking consumer-related data needs to be established first. The team needs to be well-versed in the principles of sample selection, question writing, and data analysis techniques.
3. Consumer Research
It is essential to understand the needs and expectations of consumers before collecting data. This can be done through case studies, focus groups, and in-depth interviews. This will help in better understanding the market that needs addressing.
4. Database and Segment Marketing
Database marketing can be of use in collecting customer insights. This includes the use of address lists and tracking media relationships. It also consists of a database generated by marketing campaigns and a segmentation model that divides consumers into different groups.
Benefits of Harnessing Consumer Insights
1. Predict Churn
In the long run, consumers replace their previous media selections with new media preferences. This means that you need to know the reasons behind churning and focus on understanding the actions and decisions of consumers before replacing them with a new set of media products.
2. Maximize Customer Lifetime Value
By understanding the acquisition and retention costs ratio, you can increase the profit margin by maximizing customer value. This is also known as CLV maximization or CLV optimization.
3. Deliver Personalized Experiences
Customer insights’ real value lies in identifying customer behaviors and preferences. Due to this, targeted media campaigns can be developed, and business products can be sold more effectively to consumers.
4. Determining Optimal Product Pricing
When you know the value of your customer, product pricing can be determined more effectively by providing consumers with an optimal price. Product pricing can also be used to maintain profit margins and satisfy consumers simultaneously. This is essential in the competitive market today.
5. Better Inventory Planning
Effective inventory planning is based on the number of units sold, consumer preferences, and the costs associated with each unit. With customer insights, you can understand where and when media products are sold and the factors that affect media uptake to ensure a good inventory plan.
6. Expand Into New Markets and Leave Under-performing Markets
Expanding into new markets requires information on consumer preferences in new markets or expanding existing media products into other markets. This can be achieved through customer insights on media uptake rates and product adoption rates.
CPG and Customer Insights
CPG data can be used to identify customer needs and preferences. This process allows identifying the drivers of purchasing and the characteristics that define each consumer. This way, CPG will enable companies to learn about new customers or find ways to market their products to existing customers successfully. Observational data and secondary research from the CPG can be used to identify consumer insights in several ways.
Observational data from the CPG include:
1. Awareness, trial, and purchasing levels for each product category the consumer purchases.
2. Consumer attitudes and opinions on products, services, and brands.
3. Consumer preferences for products, services, and brand.
4. Customer perceptions of benefits, quality, and price of individual product category purchases.
5. Consumer reviews of brands on specific product category purchases.