Consumer Insights

People think advertisements are all the same. And while they may not realize it, most marketers do too.

Most companies rely on what they know best – their product or service – to drive growth. Unfortunately, that strategy leads them down an expensive path of predicting consumer behavior rather than understanding it and capitalizing on growth opportunities that exist right in front of them.

To ensure that doesn’t happen to your company, it’s important to understand which consumer insights lead to maximum growth and where you should be investing your energy (and budget). Here are the top five consumer insights that your company should be aware of:

1. Your biggest fans buy more than anyone else.

One of the biggest challenges that marketers face today is understanding which products and services their consumers buy and how often.

The reason:

Most companies track metrics such as top-of-mind awareness and purchase intent, but few measure what product category a company’s best customers actually buy. While many brands focus on customer satisfaction scores (a proxy for loyalty), they usually aren’t tying it to actual line-item sales, which makes it nearly impossible to measure the financial impact on your business.

The good news:

You don’t need to be a huge enterprise with massive transactional data sets to know which customers are your best. All you need is basic customer information (in particular, email addresses) and an analytics package for consumer insights that can tie online behaviors back to offline purchases (e.g., Google Analytics).

A winning formula would include:

The best solution is to have your best customers take a survey to understand what drives them to buy. Then, use that data to find more people who are just like them and launch campaigns to encourage purchasing your product exclusively online.

2. Coupons make customers feel like they are getting a deal, but only if they find them.

The power of coupons is undeniable. But, only 20% of consumers will go on to redeem one if they can’t find it easily.

A winning formula would include:

Offer a product or service that is not widely available and easy to understand how to redeem. Put the coupon front, and center Make it shareable on social Reach out via email after they’ve signed up

3. Women are more discerning than men when choosing where to shop

Deciding where to shop is a complex process that requires more than just convenience and price. Women take emotion into account when choosing where to spend their money, unlike men, who are more transactional in nature.

A winning formula would include:

Understand how each group makes up your customer base Segment them based on purchase/product data Prioritize women as they are more likely to make the final purchase decision Provide information on your product’s features and why it matters most to female shoppers

4. Most people who complain about your brand will never go away

Even if their issues aren’t resolved, complaining online is a short-term solution for unhappy customers. Many are more likely to forgive and forget if you respond quickly, apologize for the inconvenience, explain what is being done about it, and take care of them in a beneficial way.

A winning formula would include:

Create a strategy that aims to improve your customer service through social Find common themes in comments across various channels and use them to build an action plan for improvement. Encourage all team members (from the top down) to be active participants in solving customer issues

5. Free and low-cost items generate more revenue than promotional discounts

Most consumers insights say that they would rather spend money on free products and services than discounted ones, even if the discount is substantial.

A winning formula would include:

Create a cross-channel experience Capitalize on user-generated content (UGC) by building a strategy that encourages customers’ voice and opinions through social Create your original video content to create shareable moments