Consumer insights are key in today’s digital environment. They help you understand your audience better, as well as find deeper, more actionable insights to make better business decisions and improve the way you market your products.
While market research delivers statistics and knowledge about customers or markets, consumer insights go much further. They tell you the story behind the data, not only what is happening but why it’s happening, allowing you to create more tailored and personalized experiences.
Research by McKinsey reveals that companies using consumer insights outperform their peers by 85% in sales growth and over 25% in gross margin.
Reason enough for us to explore five powerful examples of how brands put consumer insights into practice across the customer journey to improve their business performance:
1. Google: Acquire the right customers
Acquiring new customers is expensive. Leveraging consumer insights can help you spend your marketing dollars in places where your future customers are more likely to take notice and respond.
Earlier this year, Google started giving away Google Home Mini speakers to selected subscribers of its Google One storage and YouTube Premium paid services. While Google didn’t reveal more details around this promo campaign, it’s likely a move to expand market share in the voice assistant space by locking in customers who have shown interested in voice-driven applications and are willing to pay for premium services.
2. Spotify: Create targeted marketing campaigns and ads
Receiving irrelevant marketing messages is one of the biggest pet peeves of consumers. Instead of rolling out the same content and the same offers to all audience segments, consumer insights can help you target specific audience groups with messages that match their individual behavior. Doing so brings marketers a 15% revenue lift according to a Forrester study.
Spotify used its data analytics in an outdoor billboard marketing campaign that highlighted how personal listening to music can be. It was a brilliant way to draw in for potential new customers and it worked. Spotify tripled its revenue with this year-close campaign.
3. Amazon: Personalize product discovery
Roughly 35% of Amazon’s sales come from personalized product recommendations based on the user’s purchase and browsing history. Amazon goes a step further and also integrates digital assistants in a multitude of product categories to make the product discovery experience even more relevant to each consumer.
Amazon‘s AI-driven assistants run on consumer insights and enable more personalized shopping experiences without making consumers sift through the infinite product feed. They also provide the retailer with in-depth consumer insights to understand why people buy certain products over other ones and what’s driving those preferences. This helps Amazon refine personas, and determine the best way to speak to different audience segments.
Check out Amazon’s digital assistant for bikes
Get started: Find out how zoovu digital assistants can help you uncover and collect hidden consumer insights.
4. Netflix: Reduce customer churn
Consumer insights can also be used to identify trends in customer churn. What times of the month are most customers leaving you? Is there a particular event that leads to increased churn? How much do people spend before they churn? Why do they churn? Could it be the lack of new products, or are they churning for a lower-priced competitor? What kind of products would make them stay? The right insights can provide you with answers to these questions and take proactive steps to retain your customers.
Netflix uses advanced behavioral data analytics to find out how much content a user must consume per month to find the subscription valuable to him or her. Falling below this content consumption threshold puts the customer at risk of churning, and Netflix can take necessary actions like recommending something special that would interest the customer.
This strategy has saved Netflix an estimated $1 billion a year.
5. Wholefoods: Drive product development, innovation, and growth
For a company developing a new product or improving an old offering, consumer insights can help decode customer expectations and build a product that isn’t just trial and error but an actual manifestation of what target customers want.
Amazon closely observed the shift in customer behavior as it relates to grocery shopping. People were becoming more conscious of healthy eating. Following this lead, Amazon acquired Wholefoods and positioned itself strongly in the grocery industry.
The integration of Amazon’s Prime loyalty program to Whole Foods has accelerated changing shopping behavior. Amazon shoppers are 27% more likely to visit Whole Foods than non-Amazon shoppers. Both Whole Foods and Amazon shoppers appreciate value, with both groups indicating “value for money” and “good everyday prices” as top motivators. Research data also showed that Whole Foods increased its conversion rate; the percentage of all grocery shoppers that visited Whole Foods grew from 4.8% to 5.8%
Understanding your consumers’ needs and wants has become essential to ensure your company is future-proof. Instead of spending your marketing dollars indiscriminately, hoping something sticks, resort to analyzing data to uncover underlying consumer insights that will help you identify just what works for each customer and offer them just that. Customers will appreciate that you took the trouble to understand them, cut the clutter, and present them with relevant offers and experiences.
Contact us to find out why zoovu is the platform that helps you get the consumer insights you want.