Do you work in marketing, or perhaps you’re studying a marketing online masters. From SEO to A/B testing and email marketing, you should be across it all. Whether you’re a student or an accomplished marketing professional, it surely pays to stay plugged into all things marketing, consumer behaviour and data.
This helpful article will discuss consumer behaviour and how it drives marketing. We’ll cover what consumer behaviour is, how companies use insights for marketing and why it is so important. Continue reading to learn more about this valuable topic.
What is Customer Insight?
Customer insight, or consumer insight, is the understanding and interpretation of customer data, behaviours and feedback into conclusions that can be used to drive actions that improve product development and customer support. All of this is used to increase revenue and, ultimately, profit, which is the goal of the majority of private and publicly-listed organisations and companies.
Insights are the actionable motivations behind customers’ needs and wants. Companies can use insights to develop new products, guide the evolution of features and create consumer benefits. Collecting customer insights attempts to align customers’ needs and wants with a company’s business goals.
What is Consumer Behaviour?
Consumer behaviour refers to how people choose, use and leave products and services. It encompasses their cognitive, emotional and behavioural reactions to the market.
For instance, consumer behaviour describes how people interact with brands, where they shop how they shop and their purchasing habits and patterns. One key example is how different demographics prefer to buy goods. For instance, Gen Z and Millennials are more likely to research, shop and purchase goods online. In contrast, older generations are much more likely to head out to a physical location to purchase goods or browse the shelves.
Benefits of Customer Insight for Marketing
The next section of this article will share the benefits of utilising customer insights for marketing purposes.
To Create Improved Customer Lifetime Value (CLV)
Customer insights play a vital role in improving what is called Customer Lifetime Value (or CLV), which is the total revenue a business can expect to receive from a single customer over a long period. By understanding customer behaviours and preferences on a deeper level, a company can tailor its offerings to meet their needs, which will engender loyalty and encourage repeat business from that customer.
For example, if your consumer insights show that rapid customer service is a priority for a specific segment of your market, then investing in quicker response times via web chat, email, or phone calls can significantly increase CLV by keeping these specific customers happy and engaged. When they feel this way, they are more inclined to continue buying from your company.
To Gain a Better Understanding of Buyers
One of the biggest benefits of customer insights and data is that they allow a company to move beyond old stereotypes and assumptions about its target market. Without these insights, businesses have to rely on guesswork or old information or data, which leads to misguided strategies that might miss the mark.
For instance, customer insights, market research and data may reveal that a key feature of your website or app that you thought was critical or essential is actually less important to consumers than another feature you overlooked or underinvested in. The better a company understands its target market and their behaviour, the better it can market products or services to these people.
To Allow for Enhanced Ad Targeting
In the wide, wonderful world of digital marketing, ad targeting is about much more than just placing ads in front of the right people at the right time. It is about making sure those ads resonate and strike a chord with your target market. Customer insights and data give you the insights and knowledge to craft bespoke advertisements that speak directly to your audience’s interests, behaviours and wants. Not only does this make your advertising campaigns more effective and impactful, but it also reduces unnecessary and wasted ad expenditure by ensuring that your message reaches those most likely to act on it and buy your products.
For example, if your audience values the environment and sustainability, an ad campaign that highlights your brand’s eco-friendly and sustainability initiatives will resonate more deeply with this segment of your audience than generic or other messaging.
Invest in Personalised Customer Experience
Personalisation is no longer a luxury or boutique type of marketing for upper-class customers; it’s an expectation that consumers have from the brands they interact with and buy from. Customers want businesses to cater to their specific preferences, wants and needs. Customer insights enable you to segment your target market and create personalised experiences for each group within. Whether through personalised product recommendations, targeted marketing, or tailored customer service, using insights to create a high level of personalisation can lead to higher satisfaction and stronger brand loyalty amongst your customer base.
Understanding Your Customers
This helpful article has shared all about consumer behaviour, and how it helps to drive marketing. We’ve covered what consumer/customer behaviour is and the benefits of analysing it to drive marketing. You’ve learned how companies can get a better understanding of their target market and how they can use this to generate revenue and ultimately profit.
