What are customer insights?
Definition: Customer insights are interpretations of customer behavior that help businesses understand their customers.
It gives companies a data driven look into what customers are buying, how they want to feel and be treated, and why they are making purchasing decisions.
Types of customer insights
A business can gather six types of customer insights:
- Demographic - Customer information like age, location, education, gender, and income is important in linking it to their specific behaviors when making decisions. This helps businesses determine how they should approach each group.
- Behavior - Tracking how customers navigate the website, buying patterns, and product usage help businesses make predictable changes to their customer processes and reveal potential sales opportunities.
- Sales - Tracking customers through the sales funnel gives insight into what made them go to the next step in the funnel and what groups are in which part of it. It is used to make changes to the sales process and push customers through the funnel more efficiently.
- Social - Information about customers’ interactions with the business, including their perceptions and opinions. These insights help companies to understand how customers feel about them.
- Competitor - Conducting market research on how customers interact and react to close competitors shows patterns of what customers want from similar products, allowing a business to act upon them and attract new customers.
- Interaction - Common discussions with customer support reveal how customers are using the product/service, their feature ideas, and common problems used to make the customer experience better.
Benefits of customer insights
- Understanding how customers use a product/service and what they expect from it is the first step toward personalizing the customer experience.
- By analyzing customer behavior through support calls, feedback forms, and product usage trends, businesses can detect potential churns and make changes to prevent them.
- Making accurate predictions becomes easy when analyzing how customers reacted in the past, allowing for better sales and churn forecasts.
- Customer data and competitive analysis can uncover opportunities for entering a new market by detecting non-ICP users utilizing the companies’ product or noticing a trend a competitor's customers are requesting.
- Learning why different groups of customers buy a product/service allows businesses to create better marketing strategies targeting those specific groups with custom pricing and messaging.
- Listening to customers can uncover opportunities for upselling or cross-selling. Businesses can increase customer lifetime value by offering relevant offers based on their past behavior.
