No matter the industry you are operating within, standing out from your competition is the key to success. Customer’s demand high-quality experiences alongside excellent products and services. Customer insights have been a focus for some organisations for many years, but it is a landscape that is ever-changing. From voice of customer techniques to real-time user testing, there are always new methods for monitoring customer insights on the horizon.
Staying ahead of the competition and improving your consumer insights is an effective way of generating new leads, boosting sales and increasing your bottom line. We’re looking into why this year is the perfect time to level up your customer insights.
What are customer insights?
Before you can get started with an improved customer insight strategy, it is crucial you understand what these insights truly are. TechTarget defines them as “the understanding and interpretation of customer data, behaviours, and feedback into conclusions that can be used to improve product development and customer support.”. Essentially, consumer insights provide a business with a complete view of their target audience in order to help understand their purchasing decisions.
Why are customer insights critical to success?
Customer insights provide companies with the knowledge and information they need to personalise and tailor their products to their consumers successfully. This data can reveal customers’ demands, wants, and needs, so your business can ensure it is meeting them appropriately. Companies that use consumer behaviour in order to generate insights have seen an 85% growth in sales.
When you use customer insights, you can expand on your service or product offering, create in-depth personas, develop innovative marketing strategies and enhance your customer journey. The idea behind using these insights is to improve the overall experience that consumers have with your business, which in turn can increase your revenue and sales. Customers who have a positive experience with a brand are much more likely to return and recommend it to friends and family. By using consumer insights in your customer experience, you can boost retention, encourage sales and improve customer satisfaction ratings.
Why 2021 is the year to level up customer insights
The past year has been a real struggle for many businesses as they fight to stay afloat in the midst of a global pandemic. Customers have also been forced to change the way they shop, and their priorities for products and services has altered. Consumers are shopping online and discovering new businesses using online channels more than ever before. By 2023, it is expected that 22% of global retail sales will be from eCommerce, compared to just 14.1% in 2019. For businesses to stay ahead of the curve in the competitive online world, customer insights and improving customer experience is critical.
Not only have the way consumers shop changed dramatically, but their priorities when choosing products and services has shifted. Customer experience is now more important than ever before, with 81% of customers viewing it as a competitive differentiator. Consumers no longer just consider pricing and the product when choosing a new business to buy from – the experience and service they receive is also an important deciding factor. Expectations from customers have increased sharply when it comes to customer service, and using consumer insights is an effective way of keeping up with their demands.
Basing business decisions on customer insights can help your business to remain strategic and tactical while also developing relationships with consumers. There are many benefits to developing your customer insights this year:
- Maximise CLV (Customer Lifetime Value): The higher the CLV, the more revenue your business can generate. In fact, existing customers will spend 67% more on average than new ones. When you use customer insights in your strategy, you can encourage customers to return to you time and time again
- Create Personalised Experiences: Due to advances in technology and businesses becoming smarter with their marketing, consumers now expect a personalised experience. When you leverage consumer insights, you can deliver more effective personalised experiences
- Effective Promotion Targeting: Knowing your customers’ buying history and other data makes it easier to target promotions to the right audience. Efficient marketing communications and using customer data for targeting can increase profits and margins
- Optimise Product Pricing: The perfect price for your products is whatever customers are prepared to pay, and pricing incorrectly can impact your bottom line. Using analytics to provide customer insights, you can determine pricing which will deliver the best return.
Whether you are already utilising customer insights for your strategic decision making, or you’ve never used your customer data in this way before, 2021 is undoubtedly the year to level up your usage. Adopting new techniques for gaining insights and prioritising your customer analytics when making business decisions is sure to help you stand out from your competitors this year.