Finance:Customer insight
A customer insight, or consumer insight, is an interpretation of trends in human behaviors which aims to increase the effectiveness of a product or service for the consumer, as well as increase sales for the financial benefit of those provisioning the product or service.[1] There is an overlap between market research and customer insights. While market researchers can produce consumer insights, not all insights require market research techniques.[2] The insights can be acquired using competitive intelligence, big data, machine learning, social media listening, geomarketing, and text analytics,[2] as well as market research, predictive analytics and database marketing.[3]
Specifically, consumer insights is a field that focuses on analyzing market research and acting as a bridge between Research and Marketing departments within a company.[1] Commonly referred to as CI, it is the intersection between the interests of the consumer and the features of a brand. Its main purpose is to understand why the consumer cares for the brand as well as their underlying mindsets, moods, motivation, desires, aspirations, that motivates and trigger their attitude and actions.[4]
Insights can be defined through four components:[3]
- Non obvious. There is a need to converge evidence to glean insights.
- Actionable. Insights must relate to actions that firms can implement and act upon[5]
- Change consumer behaviour. An analysis of past behaviour and assuming people will be creatures of habit does not reveal any depth of understanding them, certainly not insight.
- Mutual benefit. The insight must benefit the firm and the consumer.
References
- ↑ 1.0 1.1 "What Are Consumer Insights and How Do They Impact Marketing Effectiveness?". 2014-10-02. http://www.huffingtonpost.com/jure-klepic/what-are-consumer-insight_b_5906624.html.
- ↑ 2.0 2.1 Diaz Ruiz, Carlos A. (March 20, 2022). "The Insights Industry: Towards a Performativity Turn in Market Research". International Journal of Market Research 64 (2): 169–186. doi:10.1177/14707853211039191. http://journals.sagepub.com/doi/10.1177/14707853211039191.
- ↑ 3.0 3.1 Laughlin, Paul (2014). "Holistic customer insight as an engine of growth". Journal of Direct, Data and Digital Marketing Practice 16 (2): 75–79. doi:10.1057/dddmp.2014.59. https://link.springer.com/article/10.1057/dddmp.2014.59.
- ↑ Tucciarone, Kristy (2007). "Vying for Attention: How Does Advertising Affect Search and College Choice?". College and University 83 (1): 26–39. http://www.eric.ed.gov/ERICWebPortal/search/detailmini.jsp?_nfpb=true&_&ERICExtSearch_SearchValue_0=EJ776972&ERICExtSearch_SearchType_0=no&accno=EJ776972.
- ↑ Diaz Ruiz, Carlos; Holmlund, Maria (2017-10-01). "Actionable marketing knowledge: A close reading of representation, knowledge and action in market research" (in en). Industrial Marketing Management 66: 172–180. doi:10.1016/j.indmarman.2017.08.005. ISSN 0019-8501. https://www.sciencedirect.com/science/article/pii/S0019850117306156.
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