Gone are the days of launching a product and then using it to identify your target audience. Today, put the customer at the center and meet their needs in the best way – the fastest. This is the key to the success or failure of the business.
This requires businesses to constantly update preferences, adjust products or services according to the wants and needs of customers. It’s called Customer Insight!
So what exactly is the goal of Customer Insight? How to get the right Customer Insight? I will help you understand the details through this article!
What is Customer Insight?
Customer Insight is the interpretation of customer behavior and trends based on data collected from them. From there, give specific advertising and production strategies to improve the quality of products and services and increase sales so that both businesses and customers benefit.
What are the Advantages & Disadvantages of Customer Insight?
The right Customer Insight analysis allows you to see patterns in buying behavior. Then build a close relationship with customers, increase competitive advantage ahead of competitors.
Advantages of Customer Insight
Increase competitive advantage & gain priority (Early bird)
Researching customer insights well, the easier it is for the company to predict future development trends. And thanks to that, there are many significant advantages. Besides, they can prepare themselves in advance with the necessary skills to better serve customers and gain a competitive advantage.
Increase market share
Understanding customers means always putting customer needs at the center of all activities. As a result, revenue as well as profit will increase significantly by maximizing sales.
Above all, it is easy for the company to exploit untapped opportunities in the market. And if the product or service offering is better than the competition, the product’s market share will also increase rapidly.
Change strategy to adapt to time
Change in business is essential. Customer Insight analytics helps determine their current and possible future desires. Based on that, the new company can propose corresponding changes, such as suitable advertising campaigns or promotions.
On the contrary, if not promptly changed, not only the product but also the entire operating apparatus of the company will suffer heavy consequences.
Times change and user needs are constantly changing. This requires businesses to know how to catch trends and quickly change themselves to retain them.
Cons of Customer Insight
- Although the metrics recorded from Customer Insight are usually presented as statistical data. However, there is always a human element that no amount of data can interpret. You should rely on results from 2 types of data online and offline to have the most accurate view.
- Sometimes, users change their preferences very quickly, and it can be difficult for companies to keep up with the pace of change. It is very expensive to get rid of old products and focus on promoting new products. Not to mention profits, in the long run, are difficult to guarantee.
- Customer Insight cannot be applied to all types of customers. Businesses can only use to meet a specific type or segment of customers. Based on the collected insights, the company can improvise with its products.
But somewhere there will still be a certain percentage of the population or less who won’t fit the change. It is difficult to satisfy everyone’s needs.
The role of insight in marketing activities
When correctly analyzing customer insights, it will be an advantage to identify factors affecting buying behavior. This will create the success of marketing campaigns.
Help increase revenue and market share
Researching and identifying the right customer insights helps to understand where the focus of the activity is. From there, propose focused plans to improve the way to convince customers. This saves a lot of time and effort and the results are well worth it.
Helps increase competitive advantage over competitors
Insight is an important basis for making long-term development orientations in the future. This is a way to help businesses seize the opportunity to become a market leader, with many advantages in hand.
Based on the results of analysis and research you can effectively exploit the current market. Providing special and trending products will attract customers and greatly increase competitiveness.
As the basis for strategic change to adapt in each situation
The business market fluctuates strongly in each period, adapting and changing is the way to survive in the long run. Determining the right customer insight and predicting the right trends will be the basis for making product strategies and advertising campaigns suitable for customers.
For marketing and business activities, insight is the basis for persuading customers, increasing sales and advantages.
Difference between insight and Market Research
Market Research is the collection of information about customers and markets. Information collected about market demand, size, customers and competitors in that market. Research the market and have the data and knowledge about it.
Insight also includes activities similar to Market Research but the suggestions from this research and analysis can drive business growth. Specifically, the information collected is all necessary data, is important data for making strategies for businesses.
In short, Market Research to explain who the market and their customers are. While insight explains why customers perform such behaviors in the market. Since then, businesses have made changes to improve customer satisfaction and loyalty to the business.
Features of Customer Insight
Customer Insight is the interpretation of customer behavior and trends based on the data you have about them. Through which activities can be carried out to improve the quality of products, services, advertising campaigns, and strategies to increase sales so that both parties (brands and customers) benefit.
It’s not an obvious fact
If it was obvious it wouldn’t be called tacit truth.
Example: Based on Google Analytics, you know that 70% of website visitors are aged 18-24 years old. From that you can infer that the majority of website visitors are mostly young people.
This is too obvious to call this Customer Insight.
Not just based on one type of data
You need to combine multiple sources/metrics/data/categories to generate accurate Customer Insights.
If you just look at the high Bounce Rate (the number of people entering the website and leaving immediately without interacting) on a website to evaluate the content of that page is not good, it may not be accurate.
Because that page may provide sufficient and useful content, visitors will be satisfied after reading the content, there is no need to search or view other information. Therefore, they leave the web immediately, creating a high Bounce Rate.
However, if you look at the Bounce Rate and time on page metrics to evaluate, it will be more accurate. In which, time on page is considered the time visitors stay on the page.
- If the Bounce Rate is high and the visitor’s time on page is high, then the page content is good.
- If the Bounce Rate is high but the time on page is low, then the page content is really problematic.
Therefore, combining multiple metrics will help you find a more accurate Customer Insight.
Based on that insight can take practical actions
If it is just a theory without being applied or tested, it is not Customer Insight. For example: Your company operates 2 business segments:
- B2B (business customers)
- B2C (retail customers).
B2B customer segment is very good, but needs to improve revenue from B2C group. After studying the B2C group, you come to the conclusion that:
Retail customers love to advertise services to friends and receive commissions.
Surely you have to set up a referral system to help increase the number of visitors and revenue. However, in reality, this method cannot be done with the current conditions of the company. Because of:
- Manpower (it takes too much manpower to manage the system)
- Cost (investment to build referral system)
- Time (6 months to complete the system and put it into use)
==> The resulting statement cannot be converted into a concrete action. And in fact (don’t talk about good or bad) it can’t be called Insight Customer. But in the end it’s all just opinions and thoughts.
Ability to convince customers to change their behavior
Example: You find out that after buying a laptop, people often look to buy a computer mouse. From the insight of this customer segment, you can place the computer mouse product you want to sell right next to the laptop product to increase the purchase decision rate without much advertising.
==> If they buy both products, you have changed their buying behavior. (Buy 2 products instead of 1)
Behavior change must benefit both parties: Brand and customer
Example: The purchase of a computer mouse and laptop brings more value to the buyer and brings more revenue to the seller. That means both sides benefit.
Each user will have their very own thoughts and behaviors that you need to see beyond just data or numbers.
You also need to understand that:
Customer Insight will change according to: Time, trend, technology, time/season, age, …
If you only analyze and evaluate based on old behaviors, you will certainly not be able to understand users. Over time, the Customer Insights you have will become stale and inaccurate.
How to build Customer Insight?
Here are 5 basic steps you can apply to get ideas for building effective Customer Insights:
Create a team dedicated to Customer Insight
- Answer the 6 strategic questions raised
- Build a customer journey map
- Conduct a Customer Insight survey
- Choose the right Customer Insight platform
To do the above steps, you should schedule your work and make reasonable decisions based on time, budget, scope and available resources.
1. Build a team dedicated to Customer Insight
If you want to learn Customer Insight, then look for potential like-minded “teammates”.
While this requires a lot of analytical skills, the team should not consist only of members with a calculating mind or with technical acumen. You also need highly creative individuals who bring many breakthrough ideas.
Because, people have creativity, the ability to interact with users in many different ways and make insightful judgments from many necessary perspectives.
The team also needs a leader. This person needs to have an open mind and be ready to strategize rational actions based on the results of the analysis.
2. Answer 6 strategic questions to build Customer Insight
Like other marketing strategies, building Customer Insight also includes questions to help you clearly determine which customer file you are focusing on!
#1: WHY – What is your business goal?
Ask your team or superiors. What should be your main priority/goals to be achieved in the next 90 days, 6 months or 12 months?
#2: WHEN – When will the plan be implemented?
- When will you collect the data?
- And when will the data be analyzed?
- When will the conclusions from the above analysis be communicated to the relevant departments? And how did that department get to this conclusion?
- When will user insights be used to map out the final sales, marketing or advertising plan?
#3: CONSTRAINTS – What limitations or limitations do you have to consider?
Most projects are bound by 3 main factors: Time, Budget, Scope.
So you need to be creative to find ways to achieve your project’s goals within these limits.
#4: WHO – Which customer segments are relevant to your Customer Insight research?
Which customer segment would you like to learn more about? You need to learn about their buying patterns as well as their online shopping habits. Then you also need to understand why they have such a habit?
For example, a person buying sneakers might be because:
- The old shoes had worn out soles and they needed a new pair.
- This person may be someone who enjoys playing sneakers as a hobby.
- Their idol advertises these shoes.
If you are a sneaker company, you can distinguish these two objects when they visit your online store. Thus, knowing that customers will have different shopping habits. Someone buys a sneaker that looks as trendy as a fashionista.
The other will be looking for a functional, durable sneaker. Here, consumer research will show who you are selling to and how to market to them!
#5: WHAT – What kind of data do you need to collect?
What kind of data will help you achieve your previously defined goal? Make sure the data you collect is useful. Because all aspects of the Customer Insight strategy depend on this data. If the data is not good, the decisions you make from Customer Insight are incorrect.
#6: WHO – Who will be the main implementer & responsible?
- Which member of your team will be responsible for the success of the data collection?
- Who or what department is responsible for the use of the details collected?
- Most of this data collation has been done by Customer Insight software. But you also need someone who can summarize and make sense of what this data represents.
- Therefore, make sure that your team has the right skills and knowledge to handle this data.
- You will need people with IT skills to run the software, manage the database to make everything run smoothly.
- Marketing and product development departments also need experienced members. They know how to apply the results gathered from Customer Insight to the actual actions of the team.
3. Build a customer journey map
You are probably wondering: What is a customer journey map?
This is essentially the path customers will follow on your sales funnel, ranging from the first interactions with the brand, through consideration, purchase to maintaining product service and spreading. pass it on to everyone around.
Along that journey, consumers will experience many interesting things with you. These experiences will determine if they should proceed to the next step of the sales funnel.
Therefore, you should closely monitor the user experience. By consulting sales and support departments who have more direct and intimate contact with customers to better understand their customer touchpoints.
For example, the customer support team will help you know who is having trouble using your software or application. You can then forward this to the software developers. And based on that, ask them to come up with a more intuitive interface that satisfies them.
4. Conduct a Customer Insight survey
Once you’ve completed your customer journey map, you should focus on surveying specific parts of that journey. To better understand your audience.
Through surveys, customers will tell you what they think of your product or service. And which stage is most suitable for them. From there, you will have ideas to help suggest practical adjustments. At the same time give consumers exactly what they want.
Make sure once users feel that their feedback is taken seriously. They are more likely to go further on your sales funnel. And that’s what every business wants.
5. Choose the right Customer Insight platform
Customer Insight is considered a great way to conduct surveys, develop ideas, and further foster relationships with consumers.
This platform facilitates businesses to build trust with their customers through extensive discussions. In it, many suggestions are given on places to provide effective products/services.
An outstanding advantage of this platform is that members are very interested in the product or brand. They are willing to advertise that brand. They spread the word and invite more people to try the product. This is really a good signal for business growth when advertised without cost.
Word-of-mouth advertising among consumers is twice as likely to be successful as paid ads.
According to McKinsey’s research
In addition, another study showed:
37% of users who find a business through word of mouth are more likely to stay with a business than other users
Digital customer insight research tool
This is definitely a tool that is no stranger to marketers. The utilities that GA provides from the Google survey results, you know exactly how many customers visit your website in the day, month, year, where they come from and how long they stay on your page. what, what actions they take, when and where they leave the page, etc.
These numbers are important in marketing to adjust and attract traffic, interaction and increase conversion rates on the website.
If you’re looking to analyze new topics that your target audience loves, but haven’t found a way yet, then Google Trends is a great tool to use.
This tool can point out the topics that are most interested by users today, which can be a good way to guide the plan to find customer insights more accurately, quickly and effectively.
Professional YouTubers will definitely know this tool. To know the exact information about the number of people watching the video, their age, where they are, at what time they left the video just by clicking on the “demographics tab. This information is very useful to come up with new and improved content that is more relevant to customer insights.
This is a great tool for social media houses, because there are now more than 100 social networks integrated on this platform that help create many breakthroughs.
Thanks to this tool, marketers can easily collect data about the solution affecting target customers in 4 aspects: what is the strength, passion and affection of the customer and how accessible it is. how.
Information on Facebook
Facebook is a social network that most people use, here it contains a huge source of information that marketers can exploit to find customer insights. Facebook provides tools to help you know exactly how many likes, customer journeys on Facebook, how social media interactions are and how to find information, etc.
This information is very useful for accurately predicting customer insights, serving media and advertising programs.
Bonus: 5 Tips to help you research Customer Insight accurately and effectively
Compared to a few years ago, Marketing has changed dramatically. Keeping up with the latest trends is always a top requirement of modern marketers.
However, in the battle for innovation, many marketers forget one important thing. That is, they need to really understand their customers.
>> If you really want to develop your business according to the customer-centric trend? Want to understand your customers to provide value to them? So perhaps the Inbound Marketing campaign will help businesses. Try to find out! William is also applying Inbound Marketing!
In fact, consumer needs, experiences and expectations are constantly changing. Take the time to regularly monitor and discuss issues that are important to users. It’s the only way to deliver an experience that delights them.
In other words, the marketer’s task is to try to listen, adjust, and respond to the potential needs and desires of customers.
An effective way to do this is through empathy interviews. This process is quite time consuming. But the results are well worth it. Let’s learn more about this technique:
1/ Use Empathy Interviews
Customers rarely know what they really want. That is also the reason why traditional Q&A interviews with customers will not be successful.
What is the Empathy Interview method?
To overcome this obstacle, we should use empathy interviews. Mainly focuses on the emotional and subconscious aspects of one’s own actions. You will understand why the person behaves the way he does.
Purpose of Empathy Interview
The purpose of empathy interviews is to create a comfortable space for candidates to be honest about what really matters to them. Rather than setting standards and asking them to follow them.
The empathy interviews are like a regular conversation, helping to reduce stress and encourage participants to relax to start a lighter conversation.
With the empathy interview, the professional interviewer acts as a therapist. They can visualize what the interviewee really thinks and feels from their story.
The information collected will show you where your audience comes from and how they experience the world. Best of all, you can identify current and future needs that consumers are likely to need. From there, propose creative solutions to achieve the goal.
An approach to understanding your audience
Empathy Interviewing helps marketers get accurate Customer Insights. When you combine this technique with other approaches, you’ll get a deep understanding of who your audience is and how you can come up with a smart solution to meet their needs.
2/ Observe users in daily life
Observing user behavior in everyday life is a valid approach. This shows not only what products they use, but also how they feel and how they use those products.
At Procter & Gamble Mason’s headquarters in Ohio, P&G set up a laboratory. This lab is for analytics and takes consumer discovery to a whole new level.
In an oral health science presentation ‘Insight Suite’, P&G mentioned the two-way mirror experiment.
This experiment allows the company to track how customers use the product in the bathroom and kitchen. It was then easy for researchers to make judgments about how users interact with the products and what they use them for.
Collecting this information can help you learn more about a variety of product features. In addition, knowing where products are stored and maintained can also inspire the development of quality products in the future.
3/ Consider how consumers buy your product
Paying close attention to your client’s approaches and decisions will help you understand what they’re thinking. But remember that:
People don’t always know why they do certain things. So you can interview them about the process.
Whether it’s online or in-store, keep a close eye on your customers’ actions.
- In retail stores, do consumers usually just come to buy or often ask questions before buying?
- Do they look for more product information, compare prices with online prices, or find a store representative to assist with their purchase?
Understanding Customer Insight helps you better equip your salespeople to respond quickly when problems arise. In the case of online sales:
Currently, websites all install more sophisticated tools to help you know exactly:
- What pages do consumers usually view?
- How long do they stay on a page?
- What part of the page are they most interested in?
Overall, tracking their purchases can help you get a sense of what they’re thinking. Specifically, you know what they consider important and how confident they are in your product.
4/ Attend an event or trade show
This technique is especially useful for understanding B2B customers. Especially observing how they position themselves and how they interact with customers. This will reveal their perception and direction for the future.
When observing, note the following activities:
What kind of experiences do businesses typically put inside their booths?
What images and projects do they choose to promote the company brand, sponsor?
How do employees interact with customers and tell the company’s story?
5/ Evaluate your competitors
Interviewing competitors’ customers will:
Draw an interesting perspective for the idea of growing the company
Identify the exact target customers you are targeting.
Recognizing the strengths and weaknesses of your competitors is a great advantage that sets you apart in the marketplace.
Once you’ve located your competitors, compare them with other companies in the industry. Then it’s easy to see how much time and money they’ve invested in their new product development, innovation, and leadership mindset. From there, help you determine the exact location of each business.
In short, for a successful marketing campaign, Customer Insight analysis plays an extremely important role. And this is also something that any business must focus on. This requires businesses to constantly capture consumer trends. From there, adjust your products and services to suit Customer Insight.
Hopefully through this article, you have better understand what Customer Insight is as well as the importance of customer insight analysis. From there you will be able to find yourself the right direction in your online marketing campaigns.