Why Every Successful Business Needs a Consumer Insight Specialist?
Modern consumer-facing businesses need to develop an intimate knowledge of their target audiences if they want to build customer loyalty. It takes more than just basic market research to draw in new customers and keep them coming back. It takes a dedicated consumer insight specialist who can gather, analyze, and interpret customer data to provide a deeper understanding of their behaviors.
What Are Consumer Insights?
Also referred to as customer insights, consumer insights are conclusions drawn by industry experts from new or existing customer data. They tell business owners how their customers interact with the brand and how, making it easier to leverage marketing collateral and influence consumer behaviors. This flourishing industry is about more than just collecting information. It’s about coming up with actionable conclusions that help businesses grow and thrive.
How to Hire a Consumer Insights Specialist
Not long ago, the field of customer insight didn’t exist. There was no way to gather and analyze the amount of data required to get a decent understanding of consumer behaviors and brand interactions. Now, that’s no longer the case and consumer insights form the backbone of customer-centric marketing strategies. Business owners who are still stuck in the past can catch up by contacting consumer insights recruiters to find specialists who can help.
The Benefits of Embracing Consumer Insights
Today’s customers expect more from the brands they trust, and they have every reason to. As the world becomes more connected, consumers have been able to learn more about their favorite brands, and many have come to see their buying decisions as extensions of their personalities. Business owners either ignore that trend and suffer, or embrace it and leverage it to improve sales.
Deliver Personalized Customer Experiences
Today’s retail consumers expect personalized marketing, experiences, and interactions. Harnessing the power of customer insights allows businesses to deliver tailored experiences that make modern consumers feel seen and validated.
Better Inventory Planning
Businesses can leverage the knowledge gained from consumer insights to manage smaller inventories and offer fewer markdowns. Sales data is especially helpful here since it allows stores to forecast how much inventory they need more accurately. When stores don’t have as much excess inventory, they don’t have to mark down their products as frequently to keep it moving.
Create More Targeted Promotions
Every successful modern business invests in marketing, but some investments are more worthwhile than others. By leveraging consumer data to create promotions that target those customers most likely to make purchases, businesses can save money on marketing and put their budgets to better use.
Expand into New Markets
Accurate customer data gives consumer insight specialists the ability to identify promising new markets and differentiate them from target audiences that are less likely to respond. This more targeted expansion process makes it easier to grow a business without wasting money on broad-reach or inappropriately targeted marketing that won’t deliver a good return on investment.
Optimize Product Pricing
Determining the right product pricing can be a challenge. Set the prices too low, and the business won’t be able to generate sufficient profits. Set it too high and consumers will look elsewhere for what they need. The bottom line here is that the ideal price is whatever the store’s customers are willing to pay. Customer insights make it easier to identify that optimal pricing target.
Maximize Customer Value
Turning casual browsers into brand loyalists takes more than just delivering quality products. Because today’s consumers expect personalized shopping experiences, they’ll respond better to promotions, goods, and services tailored to meet their needs. A consumer insights expert can leverage data to increase conversion rates and brand loyalty, maximizing customer lifetime value by keeping brand enthusiasts coming back and increasing organic reach.
Consumer Insights Can Address Specific Questions
Customer insights don’t just give business owners or their marketing teams insight into general consumer behaviors. They can also help to answer specific questions, such as:
- Why is product performance decreasing for a specific item?
- How do consumers perceive the brand?
- Will customers respond well to upgrades or add-ons to existing goods?
- How likely is the store to succeed with a new target demographic?
The Tools of the Trade
Customer insight experts do more than just analyzing sales data. They have an arsenal of tools at their disposal for collecting consumer data and identifying patterns of behavior. They include:
Having a social media page doesn’t just help with digital marketing efforts. It also provides tons of consumer insights. Specialists can look at how people are reacting with the company’s brand as a whole and individual posts to get real-time insights and track changes.
Most business owners associate customer reviews with building an online reputation. Of course, they help with building brand recognition, but they also provide a wealth of data on customer opinions and patterns of interaction.
Focus groups have traditionally been conducted in person, but recently, most have gone digital. Either way, they provide an excellent source of customer insights because they encourage conversations in a way that online reviews can’t match. The free-response format of focus groups, combined with the demographic data provided by participants, makes it easier to notice patterns and track trends.
Consumer insight experts also use traditional sales data, especially that derived from participation in loyalty programs. Sales data offers real-time evidence of customer behaviors and preferences, making it easier to move from the abstract into the concrete.
Brick-and-mortar store owners can sometimes benefit from brief observation periods. During these periods, third-party observers watch customers as they move through the store and evaluate products. The information garnered from third-party observation often reveals patterns that wouldn’t be obvious were business owners to rely solely on sales and self-reported data.
Consumer expectations are changing. People now expect more than just high-quality goods and helpful customer service. Providing more tailored shopping experiences requires developing a detailed understanding of consumer behaviors. The best way to do that is to leverage consumer insights from a variety of sources to develop more effective business strategies.