Paying attention to consumer insights lets your loyal customers know that you are focused on meeting their needs.
When it comes to category management, you may know the seven essential components, but do you know how to implement each one?
Consumer insights include all consumer-related information around consumer buying and shopping habits. From reducing long checkout lines to providing the best selection of merchandise at the best possible price, the ultimate goal is to improve customer satisfaction.
Similar to the famous movie line: “If you build it they will come”, consumer insights identify specific attributes that encourage repeat purchase of your product. In this example, an endless supply of baseball’s top players.
Consumer insights frequently get confused with shopper insights. Shopper insights focus on how people shop your category. They identify the process consumers go through when selecting their favorite brand. For example, they might choose the product size before they choose brand and flavor. Typically, the brand is the first choice consumers make when creating their shopping list.
Consumer insights focus on how consumers use your products. They identify the key product attributes that help you stand out from your competition and attract new loyal customers. You might focus your marketing on your product as a stand alone snack while the majority of your customers mix it with other foods like granola and yogurt.
Specifically, you need to know your target consumer, what’s important to them, their needs, why they choose your brand over the competition, and what keeps them loyal repeat buyers. Becoming an expert will help you grow sustainable sales and compete head-to-head with even the most sophisticated CPG company.
Both are extremely important in developing and implementing a brand strategy. They should also both be considered when developing a category management strategy.
There are a lot of ways to capture consumer insights. Some include simply asking customers what’s important to them and observing their behavior while they use your products. You can also capture consumer insights from social media surveys, third party research firms, etc. The key is to engage your consumer and develop a personal relationship with them.
Third-party research companies can give you in-depth consumer insights that go well beyond any “grassroots” effort. For example, a detailed study indicating why consumers choose a specific brand of bar soap, the amount of suds they feel are needed to effectively clean themselves, the ideal scent that makes them feel awake and refreshed, who they share the soap with in the household, how many washes they can get from a single bar, how many bars they typically keep in their pantry, how they perceive the value they get for what they spend on each bar, etc. This becomes more relevant when comparing your brand to your competition.
True category management helps you develop a laser-focused brand building strategy. Consumer insights breathe life into the strategy and help you engage your target customers. Consumers will “beat a path to your door” if you satisfy their needs.