What are Consumer Insights?
Consumer insights refer to valuable information gained through accurate and deep understanding of customers, based on their buying behavior, brand experiences, beliefs, needs, and motivation. Insights go beyond raw data or research, it is a multi-view of your customers derived from a strategic analysis of qualitative and quantitative data. The goal is to achieve profound insight into the customer, through the correct interpretation of data, and develop strategies that lead to customer loyalty and new customer acquisition.
How to get Consumer Insights?
Consumer insight analysis allows business to know who their audience is. In the digital signage and retail industries, for instance, marketers have come to realize that in order to achieve this deeper understanding of the customer, they must make use of analytics. In such technology-driven industries, analytics can tremendously help in delivering the right message to the right audience.
Various forms of analytics exist, providing information about consumer activity and behavior. When using digital signage, integrated face analysis technology gives business a more detailed look into the individuals who come into contact with the displays. Through cameras installed on and integrated into the displays, analytical data can show everything from the duration of time someone watches an ad or message, to exactly who watches it. The analytics technology is completely anonymous and at no point is any personal information collected or stored.
Face Analysis Technology captures human faces and recognize demographic information of the audiences in front of the digital screen, such as age, gender, and emotions. Other contextual information captured as insight through face analysis include people counting, time, location, weather etc.
Consumer Insights and target advertising
Insights gained from analytical data allows businesses to optimize and tailor their marketing messages. With analytics, it has become a lot easier to spot what messages or ads are effective with customers, going so far as to compare sales figures of certain products based on the times of the day and frequency of the ads for the respective item.
Previously, before the adoption of real-time analytics, businesses had to wait days or weeks to get such data but now, everything happens on the fly. In retail, for example, analytical reports can be used as the basis for reconfiguring store designs or repositioning products that cater to the interest of consumers.
Targeted advertising in digital signage requires the displays to have the capability of dynamically selecting and playing advertisements according to the traits of the audiences in front of them, rather than select and play in a predefined or random order. This is also known as Narrowcasting. Future audiences that belong to the same demographic as the previous, can be targeted based on the viewing behavior of the initially targeted group demographic.
Why Consumer Insights are important
- To sum it all up, here are three reasons why customer insights are important:
Consumer insights drive Persona development for effective behavioral targeting which leads to successful marketing. Without a unique understanding of customers, it’s just a guess.
- Consumer insights drive tactics. Understanding what is and isn’t relevant to an audience influences creative choices, design, and messaging.
- Consumer insights help justify ad spend. By understanding exactly who to communicate to, a business can avoid the wastage created by sending advertising to consumers who are unlikely to convert or make a purchase.
- Consumer insights are important for omnichannel retailing because retailers can leverage in-store analytics technologies to track, measure and analyze shoppers’ activities in stores and shopping centers. This information can be used to understand the shopping patterns and preferences of individual consumers.