by Jennifer Dilley

What is a consumer insight?  How do you know when you have found one?  What does it look like?

These are questions that every marketer or consumer insights professional gets asked at some point.  And while it might be useful to rattle off a definition in an elevator conversation, it is more important to internalize the definition so that when you are conducting consumer research you have a clear understanding of what you are looking for. 

Definition of a Consumer Insight

So, what are we looking for?  A consumer insight is an underlying motivation or need that explains why a consumer makes a certain decision or behaves in a certain way.  But that is not all.  When the underlying motivation is uncovered, it is only a consumer insight if it can be applied to a brand in an ownable way to unlock brand growth. 

A consumer insight identifies consumers’ beliefs and values that drive their behavior. It provides a deeper understanding of why consumers purchase certain products and dismiss others.   

Consumer Insights vs Facts

Be careful to distinguish an insight from a fact. There is a difference. A consumer fact is just a statement about a consumer behavior or the marketplace. Here are examples of facts: 

• Luxury cars account for 17.7% of all vehicle sales in the United States. 
• Luxury cars are often equipped with the latest safety features, technology integrations, and performance components. 
• The average transaction price for an entry-level luxury car is about $40,000. The average price for a flagship luxury sedan is closer to $100,000.

These facts are interesting and might be relevant to a brand, but they don’t explain why people behave the way they do. 

Consumer Insights Highlight Pain Points and Opportunities

Consumer Insights shed light on pain points for consumers and uncover potential opportunities for brands.  As an example, an insight from the findings above could be articulated as, “People want a luxury car to signal their lifestyle and financial success.” This is an insight because it taps into consumers’ underlying motivation (often more emotional that functional) and a pain point, resulting in an opportunity.   

• Motivation: People that have achieved financial success want to feel that sense of achievement and pride in their everyday lives.
• Pain Point: The initial cost and maintenance fees for a luxury car are expensive and often cost prohibitive, even for those who have achieved some level of affluence.
• Opportunity: Brand X should build car models that fall between luxury and mid-size car classes to accommodate varying levels of affluence.

Consumer Insights Must be Ownable

A consumer insight is only valuable if it is relevant and can be applied back to a brand in an ownable way.  If competitive brands are already addressing a specific consumer need and motivation, then the insight is true but not necessarily ownable for a brand. A good insight will inspire ideas and communications that allow the brand team to communicate brand benefits in a unique way.   

Note that an insight might link to a category benefit, but it can still be ownable by a brand, if it has not been adopted by the competition.

Consumer Insights Unlock Growth

The job of a consumer insight is to highlight the possibility for an emotional connection between a product/service and the consumer.  It provides brand teams with the context that explains how the product can be relevant in consumers lives.  Understanding the emotional connection between consumers motivations/needs and the brand benefits can fuel creative marketing ideas that will capture the attention and convert consumers along the marketing purchase funnel. 

Consumer Insights May Not be Overtly Articulated by Consumers

Note that consumer insights are deeper motivations that are quite often subconscious. In fact, a good consumer insight is often described as an “Aha moment.” Good insights tend to be simple human truths that we don’t discuss, but are still there, right under our noses. Because of this, specialized consumer learning techniques are needed. Ethnography, in-context observation, consumer diaries, and projective techniques like mood boards and semiotics, are required to dig beneath the surface of what consumers say to uncover their actual motivations. This may also require us to look beyond consumers values and lifestyle to macro trends – demographic, economic, pop culture, health, and technology trends that are also influencing consumer behavior. 

Tying back to the luxury car example, consumer perceptions are also influenced by economic and geo-political fluctuations such as, inflation, higher gas prices, climate change and the transition to electric vehicles. This can subconsciously change consumer beliefs and behaviors, leading to new consumer insights. 

Consumer Insights Summary

The best consumer insights: 

✔ Explain WHY? By identifying and articulating an underlying motivation, need or belief that is driving consumer behavior 

✔ Address a pain point or point of tension  

✔ Are ownable when applied to a brand/product/service 

✔ Unlock opportunities, inspiring creative marketing ideas that fuel business growth 

To discuss consumer insights with experts from SIVO, please reach out to our team at Contact@SIVOInsights.com

Is your organization hungry for strategic intent?

We are living and working in an environment that is full of volatility and change.  Many organizations are hungry for strategic intent, a term used to describe the intended direction, purpose, and plans that leaders put in place to achieve their organization’s vision.

Setting and Communicating StrongStrategic Intent Pays Off in Many Ways:

• Drives alignment across the organization
• Illuminates new opportunities for growth
• Creates excitement and engagement 
• Builds onto existing brand equity

SIVO Insights helps organizations set their strategic intent, by leading and facilitating the strategic planning process. This strategic planning  process can be summarized into three steps. Leaders must: 

1. Assess, 

2. Align 

3. Articulate

STEP 1:  ASSESS

Leaders must gather and assess relevant trends, consumer insights, market intelligence and institutional knowledge to answer critical questions across the 5C’s Assessment Framework.

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Do customers want to ‘hire’ your product?

STEP 2:  ALIGN

With this knowledge in hand, leaders participate in a facilitated strategic planning session to review their assessment of the 5C’s, to ideate, prioritize and most importantly, to align on the mission, vision, and values that will carry the organization into the future.

STEP 3:  ARTICULATE

Lastly, leaders need to articulate their strategic intent—the vision, mission and values as well as the plan—to employees, collaborators, stakeholders, and in some cases to consumers and customers. This communication needs to happen repeatedly, in multiple forums, in-person or virtually, in internal documentation, as well as, in external communication. Strategic Intent can’t be communicated enough to ensure it is internalized by all parties.

Strategic Intent Consulting: Get Transformational Insights

In this time of continuous change, with a refreshed grounding in foundational insights and market intelligence, combined with solid strategic planning (i.e., Assess, Align and Articulate), you can give your organization and your stakeholders what they are hungering for . . . strong strategic intent. Let SIVO help with strategic intent consulting!

 Schedule a Discovery with SIVO Today

Schedule a discovery with SIVO to learn how you and your leadership team can create or re-establish your organization’s strategic intent.

As your company is developing and promoting their products and services, it is critical to understand your consumers’ attitudes and behavior to grow the business. 

Understanding your consumers require specialized professionals who have the proven market researchtools and best practices. They use a combination of art and scientific methods to gather data regarding consumers’ attitudes, needs, desires and behaviors.  So, how do they gather this relevant and meaningful information about the individuals they are seeking to reach and understand more deeply? The answer is Market Research.

Why Does Market Research Matter?

Connecting with your consumers and understanding their opinions, needs byutilizing a market research-driven approach can make all the difference in identifying opportunities to build a successful business. 

According to Forbes, “Data-driven decision-making (DDDM) is just a fancy term for making intelligent decisions based on what your data is telling you. Modern market research combines DDDM with advanced technology to uncover even more granular data, which can be used to personalize market messaging and find potential areas for growth. Traditionally, market research encompasses four major disciplines: primary, secondary, quantitative and qualitative.”

Types of Market Research and Their Benefits

Primary research gathers first-hand data from consumers. It gives brand teams direct feedback on their services or products from those who are familiar with it or use it. The results are considered conclusive when the data is collected from a representative sample of consumers. Secondary research is when your sources of feedback come from other researchers or second-hand information. This type of market research provides consumer insights by studying trade journal articles, social media conversations, government agency data and published market studies and applying the information to inform business decisions and guide strategies. Together, primary and secondary research can provide more comprehensive and meaningful consumer insights.

Primary research is comprised of both qualitative and quantitative research methods. Qualitative research, which is often exploratory in nature.  It captures the in-depth nuances of what consumers say, do, and think by collecting non-numerical data. This could be done through ethnographies, in-depth interviews, focus groups, shopper intercepts, and mobile missions to gather insights that help solve a problem or help you understand your consumers better. Qualitative methodologies focus on obtaining smaller sample sizes so more time can be spent with each consumer. It focuses on the “why” behind consumer opinions, beliefs and behaviors.

Quantitative research is centered on identifying, benchmarking, prioritizing, validating, and translating data into insights that reveal opportunities. Typically, data is collected via online surveys. Quantitative methodologies focus on obtaining larger sample sizes that allow for a higher degree of statistical reliability. This type of research deals with applying statistical analytics to numerical datasets for many business objectives, such as building consumer segmentations, assessing product appeal, understanding the attitude toward and usage of products and services, and mapping consumers’ path-to-purchase journeys.

Both of these research approaches can provide excellent results. It is important to choose the approach that best addresses the business objectives, while taking timing, cost and level of business risk into account.  

How Modern Research Methods Drive Better Data

While primary research provides useful feedback on consumer attitudes and behaviors that can be utilized for developing marketing strategies, there are additional research methods that businesses can leverage to offer teams a holistic view of the consumer.   

• Brand Sentiment Analysis
• Competitive Analysis
• Customer Segmentation

Brand Sentiment Analysis

Knowing how your brand is perceived by consumers and potential consumers can help you understand the impact of your marketing efforts. .  A few factors to look at are consumer awareness, loyalty, advocacy, and value, . Social media monitoring tools are great assets when it comes to measuring consumer sentiment. Studying social media conversations and metrics allow team to identify insights and translate them into actionable strategies. This is a great way to gather unfiltered consumer feedback on your brand. 

Understanding your brand sentiment also means knowing how your brand is perceived versus key competitors. It requires selecting the right web conversations to track consumer sentiment for your brand and the competitive brands, to understand strengths, weaknesses, potential threats and opportunities to better compete.    

Competitive Intelligence

According to the U.S. Small Business Administration, 

“Competitive analysis helps you learn from businesses competing for your potential customers. This is key to defining a competitive edge that creates sustainable revenue. Your competitive analysis should identify your competition by product line or service and market segment.”

Competitive intelligence can support your brand in creating or optimizing marketing campaigns and strategies such as advertising, pricing, and product development and placement. Consider gathering competitive intelligence to get clear on your level of competition and proactively develop relevant actions to compete effectively.  

Customer Segmentation

Consumer segmentation is an excellent way to classify customers into specific groups based on their shared characteristics. From here, you can refine your messaging, sales tactics, voice, and tone to connect with these segments of people who are most likely to respond positively to your strategies. This effective approach involves categorizing consumers into different segments, based on their demographics, geographics, behaviors, and psychographics. 

The benefit of this market research analytic technique is that consumer segmentation helps businesses devise comprehensive strategies that can help brands attract new customers, retain existing ones, and create brand loyalty across the consumer base.

How Your Business Can Stay Competitive

With technology rapidly increasing and new products and services entering the market daily, it can feel like an uphill battle to stay ahead of the competition. This is why utilizing SIVO’s consumer insight and market intelligence solutions are some of the best decisions you can make for your business. At SIVO, we help you better understand your customers, differentiate from the competition, and develop consistent, consumer-centric products and services by providing your team with actionable insights. 

We do this by analyzing market research data that reveals consumer attitudes and behaviors.. This information is turned into actionable insights that result in satisfied consumers, thus higher salesand incremental growth. SIVO will: 

• Discover gaps and opportunities so you can constantly evolve, innovate, and improve the consumer experience.
• Deliver actionable insights into consumer attitudes, needs, desires, and behaviors.
• Provide a combination of thought leadership with full service, custom market research and learning and recommendations.

SIVO has worked with start-ups to Fortune 500 companies to understand their most essential needs. We then design and execute best-in-class custom market research aligned with your business objectives.

Trust SIVO to Help You Better Understand Your Consumer’s Behavior

SIVO will help you drive your business forward with consumer insights,  organizational intelligence, market and competitive intelligence, or on demand talent solutions.  
Contact SIVO today to schedule your discovery call.

By Kerry Juhl

Fast changing marketplace dynamics and consumer behavior tied to the recessionary economy are putting businesses at a crossroads. Teams need to quickly assess their priorities and pivot to new revenue and profit growth strategies. But in times of upheaval, the activities of teams can take over and they run the risk of confusing activity for progress. The alignment gained by pausing and reflecting as a team can keep the momentum going on key priorities while letting go of the rest. 

An important step amidst a consumer learning initiative is to reflect, assess, and decide on next steps. It can happen in-person or virtually and can take as little as 60-90 minutes of the team’s valuable time.  For this critical step in the journey, an outside, unbiased facilitator can be your most powerful tool.

There is no better time than now to consider these top 5 benefits of engaging a professional facilitator: 

1. Unbiased Professional

A trained facilitator brings the valuable benefit of being an objective leader who can listen to all points of view, not vested in a particular position or outcome. This creates the conditions for a more open dialogue and opportunity to see possibilities that otherwise may be missed.

2. Participate in the Discussion

Ask yourself where you can add the most value. Should you try to participate and facilitate or focus 100% on participating with your team? Engaging a trained facilitator does a couple of things. It sends a message that this work is important. It also allows you, the owner, to invest your energy into the discussion while allowing an expert facilitator to customize the process and tools around your needs and objectives.

3. Full Engagement

Critical to success is hearing from everyone in the group. This can be tricky, particularly if there are strong (or silent) opinions and voices, and now you are not in the same room! Facilitators are skilled at navigating the group dynamics and engaging all participants into the discussion to ensure each voice is heard. They also know how to keep the ideas flowing when the group might get stuck. 

4. Stretch Thinking

One of the most valuable benefits of a trained facilitator is the ability to stretch the group’s thinking. They are experts at quickly capturing ideas, summarizing, asking the right questions to build on ideas, connecting the dots between ideas, and pushing participants to think outside the box.

5. Drive to Solutions

With a process designed to meet the objective, the facilitator continually uses techniques to ensure a successful outcome with clear next steps, accountability and buy-in from the group.

Through the stages of Immersion, Interaction and Ideation, we help our clients gain empathy and develop the strategies and alignment needed to boost momentum and forward progress toward the team’s goal. Please contact Kerry.Juhl@SIVOInsights.com to learn how we can customize an approach with the right professional facilitator to meet your needs. We have a team of seasoned professionals who are passionate about working with like-minded clients and would love to talk to you!