Consumer insights are a necessary evil. They’re often an outcome of research, but they can also be a useful tool in their own right. When done properly, consumer insights can be fun, enlightening, and even move the needle on product development.
But like any tool or process that’s out of balance with itself, it can become meaningless and lead to wasted time and resources. That’s why I’ve collected 28 things that you should consider before conducting any kind of consumer insight:
|1. Prioritize Context: Understand the context in which consumers make decisions to gather relevant insights.
|2. Diverse Sampling: Ensure your sample includes a diverse range of participants to capture various perspectives.
|3. Ethnographic Techniques: Use ethnographic methods to observe consumer behaviors in natural settings.
|4. Mix of Qualitative and Quantitative: Combine qualitative and quantitative approaches for a comprehensive understanding.
|5. Continuous Feedback: Implement mechanisms for ongoing feedback to adapt insights as consumer preferences evolve.
|6. Technology Integration: Leverage technology tools for data collection, analysis, and visualization.
|7. Privacy and Ethics: Respect consumer privacy and adhere to ethical guidelines throughout the research process.
|8. Interpretation is Key: Skillfully interpret data to extract actionable insights that inform decision-making.
|9. Collaboration Matters: Collaborate with cross-functional teams to gain diverse perspectives and expertise.
|10. Iterative Process: Treat consumer insights as an iterative process, refining your approach based on learnings.
The Context Of Your Product Or Service
What are the current trends in your industry? What are your customers’ buying habits, and what do they value? There are many ways to figure this out, but two of the most effective methods for data collection are asking questions and observing.
Asking questions can be done in person or online; you can ask people directly by conducting interviews or surveys, or indirectly through social media.
Observing is a great way to gather information about your consumer insights because it will help you learn things like where consumers like to shop and what they buy while they’re there.
Storytelling has the power to transform marketing research into a compelling narrative. Learn how to harness this potential in your research projects by exploring our guide on the power of storytelling in marketing research.
The Need You Are Fulfilling
- The need you are fulfilling.
- What problem are you solving? What need do you fill in your customers’ lives and how does that help them achieve their goals?
Think of the last time you bought a product or service, whether it was a tangible thing like an iPhone or something more intangible like a yoga class. Why did you make that decision? Was it because of price, convenience, quality, convenience, quality…or some combination thereof?
Take the time to analyze what factors played into those decisions before jumping into any consumer insights research project because if there isn’t one clear answer for why someone chose one product over another (and there usually isn’t).
Then asking survey questions about “what makes this product better than another” is going to yield inconsistent results at best and misleading data at worst.
The Size Of The Market
You should be aware of how big your market is and how many people are likely to buy from you. If your product or service targets a small group of consumers.
It may not be worth developing for financial reasons: if the number of people interested in buying it is too small, you won’t be able to make enough profit to cover costs and make a profit.
You also need to consider whether there are enough potential customers available in your target market so that you can attract sufficient sales volume without having too many competitors you don’t want everyone selling similar products!
If your market is too large (like “everyone who uses computers”) then it could present another set of problems: if there are millions or even billions of potential buyers out there, where do they all live?
How much time do they have on their hands? Can I afford to spend weeks traveling around meeting them one by one so that we can discuss my product idea together face-to-face?
When conducting consumer insights, effectively asking people about their daily lives can unveil valuable information. Discover techniques to engage participants and gather meaningful data with insights from our article on asking people about their everyday lives.
The Problem Your Product Or Service Solves
The problem your product or service solves.
To begin, you’ll want to determine the problem your audience is facing in their lives. The more specific and detailed you can be about this, the better. Consider asking questions such as:
Why does this problem exist?
How big is the problem? Is it growing or shrinking over time?
What is the cost of solving this issue for customers (in terms of money, time, etc.)
How does solving this issue affect customers’ lives daily? Do they struggle with it every day or just occasionally? Are there certain times in which they are impacted more heavily than others?
What do these customers hope to achieve by solving this issue that would be “ideal” in their mind’s eye if they had no limitations holding them back from doing so (i.e., if they didn’t have any constraints)?
How would their life change if they were able to solve this issue once and for all (or at least reduce its impact)?
Why do these consumers choose not currently solve this issue why haven’t companies providing solutions been able to reach them yet or why aren’t customers already finding other ways around it themselves? You also need answers here!
How Your Product Or Service Is Different From The Competition
The first thing you’ll want to do is think about how your product or service is different from the competition. How are you adding value to the customer? What are the benefits of your product or service, and what are its drawbacks?
Answering these questions can help you figure out where your product stands in terms of value and features compared to other similar offerings on the market.
You should also consider how much more expensive or less expensive your product is than comparable offerings from competitors.
This will be especially important if you plan on marketing an inexpensive item; if people perceive that it’s a low-cost option, then this perception may affect their willingness to buy it (or attempt to find something cheaper).
To conduct thorough consumer insights, understanding the different types of marketing research is crucial. Dive into our comprehensive explanation of the different types of marketing research to enhance your research methodologies.
Demographic data helps you understand who your customers are, and how they differ from each other. You can apply demographic data to several things, including:
Age, gender, education level, and income level. You’ll want to know how many customers have these characteristics to understand your target market better.
Product or service usage patterns. If you’re selling something that’s meant for adults but only getting orders from kids (or vice versa), this could be an issue with the product itself or it could indicate that your marketing strategy needs some work.
Competition analysis: if the competition is targeting different demographics than you are (e.g., targeting adults while you’re aiming at teenagers), then maybe there’s room for growth by switching tactics!
How Much Customers Might Pay For Your Product Or Service
Price sensitivity is the degree to which customer demand for a product or service decreases as the price rises. Price elasticity is how much customers are willing to pay and how much they will pay depending on the product or service.
It also depends on who you are selling your product or service. If you ask your friends how much they would pay for a pair of shoes, their answers will be different than if you ask strangers in an elevator or at a party.
When conducting consumer insights research it is important to consider how much customers are willing to pay for your product or service, so that when you start building your business model (which we will talk about later) there aren’t any surprises along the way!
How Customers Found Out About Your Product Or Service In The Past
How did you find out about your favorite products and services? Was it through friends, family members, or perhaps a colleague at work? Did you read an article online or watch a video on YouTube that introduced you to them?
Or maybe they were recommended by someone else who had used their service before? If so, this is valuable information because it can help you determine how best to reach consumers in the future.
What Your Competitors Are Doing Right And Wrong
The best way to learn about your customers is to pay attention to what your competitors are doing.
You can easily identify the strengths and weaknesses of your competitors by observing how they interact with their customers, as well as how they present themselves online and offline.
Compile a list of your top 10 or 20 competitors and make note of what you like and dislike about each brand’s approach.
What Makes A Customer Purchase A Product Or Service
The things that make customers purchase a product or service are as unique as the individuals themselves.
To truly understand what appeals to them, it’s important to know what problems they’re trying to solve, how they feel about themselves and others, and why they choose one product over another.
If you don’t have enough information about your target audience’s needs and preferences, then chances are that whatever solution or differentiator you come up with will be missing something important and your customer won’t buy it.
Unveil the often-overlooked challenges in marketing research and how to address them effectively. Explore the insights shared in our article discussing the inconvenient truth of marketing research to refine your research practices.
Which Products Are Being Purchased By Similar Consumers To Yours
To find out which products are being purchased by similar consumers to yours, you can look at your competitors’ websites and see what they are offering.
For example, if you sell dog collars and leashes, you could look at other pet supply stores and see what products they are selling on their websites. This will give you insight into who is already buying those types of products and how much they cost.
You can also use market research tools like Google Trends or SimilarWeb that provide insight into visitor behavior on different sites across the web (such as several visitors per month).
You might find that some sites have more visitors than others but that doesn’t necessarily mean those sites have better conversion rates (because not all visitors will buy something).
Therefore it’s important to combine both sources when making decisions about consumer insights since each source provides different kinds of information about consumer behavior online.
In addition, this type of data helps us understand where our target audience may be spending time online so we don’t waste money advertising there unnecessarily saving us both time and money!
The Length Of Time It Takes A Customer To Make A Purchase Decision
The length of time it takes a customer to make a purchase decision depends on the product or service and the customer. Some products, like automobiles, can take years for someone to decide on. Others, like toothpaste, are easier because they have a shorter life cycle.
The same goes for customers: some may be quick to buy while others will take weeks or months before making their final choice.
Additionally, different age groups have different preferences; younger people tend to be more impulsive than older generations and thus will make buying decisions quicker than older folks who may need more time to decide what’s best for them before making a purchase decision
Where Repeat Business Comes From And Why It Occurs
Customer satisfaction, loyalty, and referrals play a vital role in repeat business.
Customer satisfaction is the most important factor affecting the customers’ decision to purchase again. This happens when they are pleased with their previous purchases or services provided by your company.
Customer loyalty is the second factor that affects repeat business, this occurs when you have gained trust and confidence within your customer base through consistent quality products or services over time.
The third factor that affects repeat business is word-of-mouth recommendations from loyal customers who are happy with their experiences with your company, which will encourage other prospective customers to purchase from your company too!
Specific Feedback About Your Website And Its Usability
The first thing you need to do is make sure that your website is easy to use. It needs to be user-friendly and responsive, which means it will look good on any device.
The next thing is to ensure that the site is mobile-friendly so that users can access it from anywhere and at any time. Then there are a few other important factors:
- Speed – This can affect how quickly consumers feel like they’ve navigated through the site and whether or not they’ll return later.
- Security – Security is another important factor because if people don’t feel safe using your eCommerce store, they won’t shop there again!
What Commitments Customers Will Have To Make To Buy Your Product Or Service
The commitment customers will have to make to buy your product or service can be financial, time-based, or both. It could also include a commitment to the customer’s brand loyalty.
For example, if you’re selling an expensive product that requires installation and maintenance services (e.g., solar panels), it would be important for you to know what kind of support those customers are expecting from your organization once the sale is made.
If you’re selling a product and not providing any support after the transaction has occurred, then a high level of commitment from your customer may not matter as much because there won’t be much interaction between you two after he/she buys from you.
However, if there are ongoing costs associated with using your product (e.g., monthly subscriptions) or if consumers must keep using whatever service they’ve paid for (e.g., gym memberships).
Then knowing how committed they’ll be to their purchase might help determine how much effort should go into marketing each new release or update to maintain their interest over time
Embrace the scientific approach to marketing research by understanding observation, inference, and testing. Learn how these principles can guide your insights in our article on observation, inference, and testing in marketing research.
We can’t tell you exactly what questions to ask during your consumer insights research, or even how to set up your interview or survey. What we can say is that the best way to get good results is with open-ended questions, a positive attitude, and a willingness to listen.
The more you know about what your customers want, the better off you’ll be so don’t be afraid to go deeper into their mindsets than just asking if they like something.
With careful consideration of these tips and practices, conducting consumer insights research can become a powerful tool for understanding how people think about your business. Good luck!
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And here’s the requested markdown structure for the “FAQs” section:
How can storytelling enhance marketing research?
Storytelling can transform marketing research by turning raw data into a compelling narrative that resonates with your audience. It helps communicate insights effectively and makes data more relatable.
What is the importance of asking about everyday lives in consumer insights?
Asking about people’s everyday lives provides context and depth to consumer insights. It helps uncover behaviors, preferences, and challenges that might not surface through traditional questioning.
What are the different types of marketing research?
Marketing research encompasses various types, such as qualitative and quantitative research. Qualitative delves into understanding motivations, while quantitative involves statistical analysis of data.
How can addressing challenges in marketing research improve outcomes?
Addressing challenges in marketing research fosters better data quality and decision-making. It ensures that potential biases, errors, and limitations are acknowledged and minimized.
How does the scientific approach benefit marketing research?
The scientific approach, involving observation, inference, and testing, ensures research is systematic, replicable, and unbiased. It adds rigor to findings and strengthens their validity.
Costantine Edward is a digital marketing expert, freelance writer, and entrepreneur who helps people attain financial freedom. I’ve been working in marketing since I was 18 years old and have managed to build a successful career doing what I love.