Business success can be achieved in many ways, including applying the concept of consumer insight. As a company-to-consumer approach, this concept enables companies to operate more effectively. For this reason, companies need to understand the importance of consumer insights and how to optimize them.
The concept of consumer insight is one of the company’s strategies to drive its business. Consumer insight allows companies to conduct market analysis as a reference for their marketing and sales activities.
Recognizing the importance of consumer insights and optimizing them can help you stay ahead of competing companies. Let’s take a look at the full information below.
Definition of Consumer Insight
Consumer Insight is the process of understanding the behavior, interests, and mindset of customers when purchasing a company’s product or service. Consumer insight is the same as customer insight. This process allows you to get feedback from customers.
This feedback can serve as a reference for innovation and improvement of the products or services your company offers.
What is the function of Consumer Insight? The Consumer Insight business concept is used to determine the right target market for the company. The results of this targeted analysis are later paired with an advertising concept that understands consumer wants and needs.
5 Purposes and Benefits of Consumer Insight
After knowing the importance of consumer insights, how important is it for your business? Consumer Insight has several benefits that can support business progress. If you know that the purposes and benefits of consumer insight are in line with your business goals, you need to implement them. Below are 5 goals or benefits of Consumer Insight.
1. Create a Customer Journey Map
The first benefit of consumer insight is to create a customer journey map. It can help you know how the product or service sales business is growing in the market. With Consumer Insight, companies can map their awareness in the business market.
A customer Journey Map can also help companies analyze the progress of their business. It is important to identify how the business is developing in the market to determine both preventive and strategic steps.
2. Facilitating the Right Marketing Strategy for the Company
Consumer Insight is used to become one of the facilities in determining the right marketing strategy. The results of market analysis can tell you what kind of marketing strategy is good to implement. Being able to determine the right marketing strategy can help companies to proceed effectively and efficiently.
3. Input On Brand Decisions
After operationalizing the concept of consumer insight, you will get research results. So, the results of this research can serve as a consideration in brand decisions. Inputs from consumer insight affect business potential in the future.
4. Assist Marketing Allocation
Consumer Insight becomes a facility for determining the right marketing strategy. This step can help in allocating the marketing team. Companies don’t need to try many strategies and spend an excessive amount of money on marketing products or services.
Marketing strategy decisions made based on consumer insights results can be the most effective and efficient solution for your business.
5. Analyzing External Factors Against Business Changes
Consumer insights not only provide results on market wants and needs, but also help companies identify various external factors. For example, social and cultural factors change trends that affect business operations. The introduction of these external factors can be used to create adaptive steps amidst market competition.
5 Ways to Optimize Consumer Insight
Now that you know how important and useful consumer insights are, you still need to optimize them. If you can make the most of consumer insights, the benefits to the business will be even greater. Let’s look at some of the ways you can optimize consumer insights below.
1. Collect Data
The first way is to collect consumer data collectively. The results of this data collection can show how insightful your business is on various social media, e-commerce, and websites. In addition, consumer data is used to find out how consumer behaviors, interests, and mindsets view and purchase products or services.
2. Consumer Research
After obtaining complete and sufficient data for archiving, conduct consumer research. You can conduct research by conducting surveys, direct calls, or forum group discussions (FGD). Through this research, companies can find out what needs to be improved about their product or service.
3. Effective Marketing Management
Consumer data and research findings are the most important assets in determining effective marketing methods. Use as much research as possible to specify your media and marketing strategy. Advertising may be the right tool to communicate with customers.
4. Prioritize Customer Feedback
After you have conducted various marketing methods deemed appropriate, prioritize customer feedback. You can send surveys and questionnaires to draw solid conclusions about the quality of products or services. So, the results of this customer feedback can be a marketing improvement in the future.
5. Benefit From Real Time User Testing
Are you familiar with the application of user testing? If not, you should try this method to get audience preferences in marketing media. The way user testing itself works is by running A/B tests on specific variables from the customer experience when accessing apps/web/other marketing media.
This can give you a detailed assessment of the effectiveness of the company’s ad placements.
So that was information about consumer insights and how to optimize them. If you understand how important this concept is to business progress, you need to apply it to business operations.
Business is a science without boundaries, so knowledge and strategy implementation must move dynamically according to market conditions.