Every business wants to know what their customers want. Fortunately, this task has become more comfortable because of the availability of public data.
People use social media to brand themselves to characterize their vision, goals, likes, and dislikes.
How Consumer Insights Analytics Helps With Understanding Consumer Behavior
Leveraging the multiplicity of data available is the key to creating consumer insights that drive effective strategies.
What Are Consumer Insights?
Marketers analyze data to create consumer insights, which are indications of how consumers think and feel about a product or brand. From here, they can use a consumer insights platform for analysis.
There is some psychology involved in figuring out how consumers will behave and react in certain situations. Fortunately, there is no need to simply guess; data-driven consumer insights can accurately predict behaviors and provide business clues.
Also, consumer insights software and consumer insights tools perform large-scale analyses that inform strategy.
Consumer insights guide all aspects of a business if customer reviews indicate that a new product isn’t working or if one particular feature is more popular than others, a product development team will know how to upgrade the item.
If customers react enthusiastically to one promotion but ignore another one, and if a pattern emerges, marketers will know how to launch their next promotion. Feedback on customer service should be needed to improve communication.
How can consumer insights help business owners understand the behavior of present and prospective customers? Here are five ways.
Reinforce Positive Behaviors
Behaviorist psychology tells us that if actions are reinforced and rewarded, they will yield repeated similar actions. The opposite is also true.
When business owners have noticed new visits to their sites, first-time sales, and subscriptions, these should be immediately rewarded. Offering a gift to new customers, such as an ebook, for a subscription, or giving a discount coupon to new customers towards second purchases are examples.
For instance, Beyond Meat performed well during the pandemic because of interruption in the meat supply chains that led shoppers to look for alternatives. Once consumers tried this imitation meat product, they began buying more, resulting in a doubling of Beyond Meat’s sales in 2020.
To introduce their product to new customers, Beyond Meat began delivering food to hospitals and community centers so people could try the product, and they offered incentives for purchases.
Offer New Products Consistent with Trends
The habit of seeing observable trends as opportunities often yields fruit. A negative event in one area can be a positive boon in another. The key is spotting trends and acting fast with product development, marketing, and promotions. Preferably, look at trends that affect a large population.
During the pandemic, health consciousness was evident. Online sales of supplements rose substantially as there was a renewed interest in improving general health and immunity to the virus. In addition, gym closings led to increased sales of workout equipment that can be used at home.
Shopify is listed among the top trending products of 2020 water bottles, gym mats, and exercise balls. Companies that got ahead of the at-home workout trend received more attention.
Use Contextual Clues to Encourage Consumer Habits
Finding contextual clues that encourage behavior requires close observation. We notice these clues in our day-to-day observations. Contextual thinking is often used in shelf placement. When people buy band-aids, they usually need similar items like rubbing alcohol, so naturally, it makes sense to stock alcohol next to the band-aids.
Looking for less obvious contextual clues can be a challenging but rewarding way to encourage buying habits. These clues can be related to the time of day, object placement, or other factors.
Selling healthy fruit drinks in gyms or noticing what other related products customers buy are applications of contextual marketing. Forming a cross-promotion partnership with another company based on contextual clues can be profitable.
Suit Messaging to the Mood
Social and economic upheavals can create a mood of uncertainty. Smoother periods can foster a general feeling of well-being.
Matching messaging to the mood of the times is essential to establish a connection with your customer. Although it is best to avoid controversy, validating consumers’ feelings is a way to open the doors of communication.
During the pandemic, many hair salons were struggling financially because of closures. The haircare brand Olaplex started an affiliate program in which it donated some proceeds of sales to customers’ local stylists. Olaplex earned respect and increased visibility as this campaign was discussed on social media.
Analyze Detailed Data of Consumer Actions and Opinions
Data is readily available on social media platforms, eCommerce pages, and review sites. Locating, collecting, and analyzing this data is essential to get a fully detailed picture of ideal customers.
Competitors often are working with the same data. Therefore, it is essential to dig deeper and find information rivals have not yet uncovered.
It isn’t enough to look at sales of a product, but whether the larger sizes are selling better than the smaller ones. Find out which demographic is purchasing what sizes, colors, and models and consider the time of year.
Looking at the crosscurrents of data reveals as much as individual metrics. Also, paying attention to the time of day purchases are made (taking the time zone into account) can be informative.
Getting to Know Your Customers
Knowing customers is an essential first step for any marketing strategy. Using consumer insights is instrumental in predicting behavior and finding a direction for marketing and product development.
Integrating data-driven methods with an eye to behavioral psychology can identify trends and create a context for understanding consumer actions. Providing positive reinforcement for new behaviors can improve customer retention and strengthen your brand reputation.