26 Dec 2024
What Are Consumer Insights and How Do You Use Them (with examples!)?
In today’s creepy digital landscape, where every click, share, and purchase leaves a slug-like trail of slimy data, consumer insights have emerged as a crucial tool for brands seeking to stay competitive and relevant. Knowing your customers is no longer limited to broad demographic assumptions; it’s about diving deep into their motivations, preferences, and pain points to craft strategies that resonate on a personal level.
Brands now leverage consumer insights to:
- Build tailored marketing strategies based on precise consumer behaviours
- Drive product innovation by responding to consumer needs and preferences
- Improve customer loyalty by personalising interactions and experiences
- Optimise customer retention by proactively addressing pain points
For marketing and advertising teams, understanding consumer insights goes beyond mere data collection—it’s about translating data into actionable strategies that drive growth. In this article, we’ll explore the core of consumer insights, discuss methods to gather and analyse them, and provide actionable strategies to integrate them into your marketing efforts. By mastering consumer insights, brands can create impactful campaigns that meet their audience where they are - without creeping them out.
What Is Consumer Insight?
In the simplest terms, consumer insights are the profound understanding of consumer behaviours, preferences, and motivations derived from analysing data, feedback, and research. These insights reveal why consumers make certain choices and what drives their loyalty, preferences, and pain points. While consumer insights sound similar to market research, they go well beyond mere demographic and sales data to reveal the ‘why’ behind consumer actions, allowing brands to connect emotionally with their audience.
Consumer Insight vs. Market Research
While closely related, consumer insights and market research serve distinct functions. Market research involves collecting quantitative data about a target market, while consumer insights focus on qualitative interpretations of consumer behaviour. Market research is valuable for understanding the ‘who,’ ‘what,’ and ‘where’ of your audience, whereas consumer insights help uncover the ‘why’—why consumers make the choices they do.
Why are Consumer Insights Important for Your Brand?
In straightforward terms, consumer insights transform raw data into actionable strategies. By understanding the nuances of consumer behaviour, brands can not only cater to customer expectations, but also put you into Mystic Meg mode to anticipate future needs.
Understanding Consumer Behaviour
Consumer insights dig into why customers prefer certain products, shop on specific days, or react negatively to particular marketing tactics. Key factors include:
- Preferences – Favourite products, services, and content formats
- Motivations – Emotional drivers, such as value for money or brand reputation
- Pain Points – Frustrations or obstacles encountered throughout the customer journey
Enhancing Marketing Strategy
Using consumer insights to inform your marketing strategy enables more targeted and relevant messaging. For example, a skincare brand might discover that customers are increasingly interested in eco-friendly ingredients. With this insight, the brand can adjust its messaging to highlight sustainable practices, resulting in higher engagement, sales, and numbers of happy people with well-moisturised skin.
Consumer insights allow brands to truly understand and connect with their customers on an individual level, giving them the competitive advantage in a saturated market.
How to Gather Consumer Insights
To gain a comprehensive view of consumer preferences, brands must gather data from multiple sources and analyse it with care.
Analysing Customer Feedback and Data
Customer feedback isn’t just good for Karens. It provides real-time insights into customer satisfaction and preferences, with effective methods including:
- Surveys – Capture customer opinions and satisfaction levels
- Feedback Forms – Offer in-depth, product-specific insights
- Analytics Tools – Google Analytics and similar tools provide data on website behaviour, traffic sources, and popular pages
Tip: Regularly review customer feedback to identify trends and emerging needs.
Using Social Media for Insights
Social media is far more than doom-scrolling and dance routines. It’s also become an invaluable source of consumer insight, revealing real-time preferences and opinions. By monitoring social media conversations, brands can better understand consumer sentiment and interests.
- Sentiment Analysis – Analyses tone in customer comments and messages
- Trend Identification – Tracks popular topics and consumer demands
- Competitor Comparison – Allows brands to observe what works (or doesn’t) for competitors
Types of Consumer Insights
Brands can categorise consumer insights to better understand customers and create focused strategies.
Demographic Insights
Understanding demographic characteristics, such as age, gender, income, and geographic location, enables brands to target specific audience segments. Demographic data can guide messaging, product offerings, and even preferred communication channels.
These demographic insights then allow brands to tailor their marketing strategies to specific audience segments, ensuring campaigns are both relevant and effective. Here’s how each demographic factor can contribute to a more focused and impactful strategy:
Age
Age is more than just a number and associated levels of back pain. It plays a significant role in shaping consumer behaviour, as different age groups often have unique preferences, communication styles, and shopping habits. For example:
- Gen Z prefers authentic, social media-driven marketing and values brands that champion causes.
- Millennials often respond well to convenience and value in products, with a keen interest in sustainability.
- Gen X and Baby Boomers may be more responsive to email marketing and value-focused offers.
By aligning campaigns with the specific expectations of each age group, brands can increase engagement and relevance.
Gender
Gender-specific marketing has evolved significantly since the days of blue is for boys and pink (and more expensive) is for girls, with a focus on inclusive and diverse representation. However, understanding how products may appeal differently based on gender can still be useful in targeting:
- Female consumers may respond to messaging that emphasises empowerment, beauty, or lifestyle.
- Male consumers might prioritise practicality or features in product-focused campaigns.
- Non-gendered approaches are increasingly relevant as brands aim to be inclusive, especially in sectors like fashion and beauty.
Tailoring marketing messages based on gender insights helps brands communicate more authentically with each group.
Income Level
Income level can influence buying decisions, budget priorities, and brand loyalty. With this in mind, brands can create targeted campaigns:
- High-income segments may appreciate premium, luxury-oriented messaging that highlights quality and exclusivity.
- Middle-income consumers might respond to value-driven campaigns or product bundling.
- Lower-income segments could be more interested in discounts, financing options, or promotional offers.
Creating messaging that aligns with the financial capabilities and lifestyle expectations of each income segment can make campaigns feel more relatable.
Geographic Location
Geographic insights inform brands about regional preferences, local trends, and seasonal buying patterns. For instance:
- Urban audiences may prioritise convenience and cutting-edge technology.
- Rural consumers might value durability, practicality, or products suited to outdoor activities.
- Seasonal insights are also key—for example, beachwear in coastal regions or winter gear in colder regions (except for Newcastle, where a t-shirt is fine).
Using geographic insights to tailor marketing ensures relevance and resonates with consumers based on their environment.
Family Structure
Understanding a consumer’s family structure helps brands cater to specific needs:
- Single consumers might value flexibility and convenience, responding well to campaigns for travel or self-care products.
- Parents often look for family-oriented deals or products that are child-friendly.
- Older families may focus on home improvement, financial planning, or health products.
By adjusting messaging to consider family dynamics, brands can address consumers’ specific lifestyle needs.
Behavioural Insights
Behavioural insights focus on the actions customers take, allowing brands to predict future behaviours. For instance, an analysis of purchasing patterns may reveal that certain customer segments shop primarily on weekends, allowing brands to tailor promotions accordingly.
Read more about this in our Behavioural Insights blog post.
How to Use Consumer Insights to Improve Your Marketing Strategy
Integrating consumer insights can optimise your marketing strategy by making your messages more relevant and personalised.
Personalising Customer Experiences
Who doesn’t like a personal touch? That’s why personalisation is one of the most powerful applications of consumer insights. Tailoring content, products, and communication to individual preferences can lead to significantly higher engagement and conversion rates. A classic example is Netflix’s recommendation system, which uses viewer preferences to suggest content, keeping users engaged and loyal to the platform.
Building Customer Loyalty
Chris Brown famously loved loyalty so much, he made a bad R&B song about it - and it’s just as important to brands. By understanding and addressing customer needs proactively, they can build this trust. Insights-driven loyalty programmes, for instance, provide exclusive rewards based on purchase history, deepening the customer relationship and encouraging repeat purchases.
Research by Salesforce shows that 72% of consumers expect companies to personalise their interactions based on their previous experiences, and personalised recommendations are increasingly influencing loyalty. This expectation for tailored interactions is especially strong in younger demographics, who tend to reward brands with repeat business when their preferences are recognised and met. Similarly, Salesforce’s “State of the Connected Customer” report found that loyalty programmes enhanced by personalised perks can significantly drive loyalty, with many consumers engaging more deeply with brands that make them feel valued through these efforts.
Offering consistent, multi-channel customer support is another major loyalty builder. According to the same Salesforce report, a seamless customer experience across different channels significantly impacts loyalty. About 67% of consumers reported switching brands because of inconsistent experiences across online, mobile, and in-person platforms, while brands that offer reliable support across these touchpoints are more likely to retain customers.
Trust and authenticity are cornerstones of customer loyalty. HubSpot found that 94% of consumers rank trust as an essential factor in their brand relationships, with features like transparent return policies, loyalty rewards, and seamless interactions being critical in fostering that trust. Additionally, Salesforce noted that loyalty programmes and frequent updates in response to feedback also help customers feel connected and respected, which drives long-term loyalty and is therefore Chris Brown-approved.
Optimising Marketing Campaigns
Consumer insights enable brands to refine their campaigns, adjusting messaging and timing to resonate more effectively with their audience. For example, a fashion retailer may find that their audience engages more with social media ads in the late afternoon (arguably the most fashionable time of the day), leading to optimised ad scheduling.
Case Studies: How Brands Have Leveraged Consumer Insights
Case Study 1: WaterAid - You Can’t Have a Rainbow Without Water
With traditional fundraising approaches becoming less effective, WaterAid faced the challenge of reaching new audiences and reinvigorating awareness about the global water crisis. The aim was to drive higher-level consideration among new and existing supporters by making water-related issues resonate on a personal level. This meant shifting focus from abstract global concerns to relatable, everyday experiences, ultimately bridging the gap between awareness and action.
Through extensive consumer insights, we identified that while people may not feel an emotional connection to "water" as a concept, they care deeply about the vital, everyday functions water enables. This insight shaped the campaign’s central message: "This is Personal." By focusing on the intimate, daily experiences tied to clean water access—like drinking safe water, bathing, and basic hygiene—the campaign aimed to bring the water crisis close to home, creating a visceral understanding of its impact.
We designed the campaign to resonate deeply with shared values and cultural moments. In the context of the COVID-19 pandemic, when health and hygiene were top of mind, the campaign’s messaging became especially relevant. WaterAid’s first creative piece, You Can’t Have a Rainbow Without Water, connected the water crisis to the pandemic’s pressing concerns, portraying water as essential for health and dignity in challenging times. The storytelling was positive yet urgent, aligning WaterAid’s mission with the current global focus on public health.
The campaign produced outstanding results, proving the effectiveness of Don’t Panic’s insight-driven approach:
- 57% Engagement Rate: WaterAid’s highest engagement rate for a film, underscoring the campaign’s success in resonating with viewers
- 911,000 Views on Facebook: the wide reach on social media showcased the campaign’s ability to connect with and mobilise audiences online.
- 30 Million TV and VOD Views: Exceeding the target by 15%, this reach validated the campaign’s relevance across media channels.
- 162 Pieces of Media Coverage: The campaign garnered extensive national and regional coverage, reaching over 15 million people, further amplifying WaterAid’s message.
- 18% Uplift in Donations: The campaign directly contributed to an increase in both one-time and regular donations, a significant metric of success for fundraising efforts.
The campaign exemplifies how we utilised consumer insights to transform WaterAid’s messaging. By reframing water access as an intensely personal issue, the campaign not only generated unprecedented engagement but also drove meaningful action, demonstrating the power of consumer insights in crafting campaigns that truly connect.
Case Study 2: Oxfam - Stay in the Fight
Oxfam aimed to reshape how legacy giving was presented, shifting away from the typical sombre tone in traditional ads. The challenge was to celebrate and engage an older demographic, recognising them as active changemakers rather than passive donors. Oxfam sought to boost its "Brand Love" by appealing to the lifelong activist spirit within their supporters and reinforcing a shared commitment to social causes.
Research into intergenerational attitudes towards social causes revealed a strong alignment in values. Findings indicated that 54% of 18-34-year-olds were inspired by past generations of protestors, and 42% of younger people felt connected to the same causes as their parents and grandparents, with poverty and climate change topping the list of concerns. This insight provided a foundation for appealing to older audiences by celebrating their legacy as trailblazers while motivating them to make a lasting impact.
The campaign’s message, “Stay in the Fight”, encourages baby boomers to carry forward their lifelong advocacy by leaving a gift in their wills to Oxfam. By emphasising legacy as an "act of defiance," the campaign resonates with supporters who value activism. Our hero film was supported by a robust digital and print presence and invited this audience to continue championing their causes beyond their lifetime.
The “Stay in the Fight” campaign achieved significant traction, reflecting the power of aligning consumer insights with brand messaging:
- 240+ media articles across multiple outlets, amplifying Oxfam’s message to a wide audience.
- Third Sector Awards: The campaign earned "Highly Commended" in the Communications Campaign of the Year category, recognising its innovative approach and impact.
Oxfam’s “Stay in the Fight” campaign exemplifies how a deep understanding of consumer values can reinvigorate a brand’s message. By appealing to the activist legacy of their supporters, Oxfam not only reframed legacy giving but also reinforced an enduring connection with their mission, proving that legacy marketing can be a powerful, inspiring tool for social change.
Tools and Techniques for Gathering Consumer Insights
Data Analytics Tools
Data analytics platforms are indispensable for gathering, organising, and interpreting data. Some of the most effective tools include:
- Google Analytics – Tracks web traffic, user behaviour, and demographic data
- HubSpot – Manages customer interactions and tracks customer journey
- Qualtrics – Facilitates surveys and feedback collection for customer insights
The Role of Focus Groups
Focus groups don’t just provide a selection of biscuits - they also offer deep, qualitative insights, allowing brands to understand customer perceptions and motivations. To conduct an effective focus group:
- Select participants from your target demographic.
- Prepare open-ended questions.
- Analyse responses for recurring themes and sentiments.
- Put on a lovely spread of biscuits.
Best Practices for Using Consumer Insights
Incorporating Insights Across Your Business
While consumer insights are essential for marketing, they also benefit other areas of the business. Product development teams can create offerings that meet specific customer needs, and customer service teams can address common pain points identified through insights.
Regularly Updating Insights
The consumer landscape evolves quicker than you can say, “I can’t believe how quickly this consumer landscape is evolving,” so it’s vital to keep insights current. Regularly reviewing and updating insights ensures that your marketing strategies remain relevant and effective.
Bringing It All Together
Understanding consumer insights is a powerful way for brands to connect deeply with their audience, building loyalty and driving growth. By collecting, analysing, and acting on these insights, brands can create personalised and effective marketing strategies that not only meet, but exceed consumer expectations - and that truly is the dream.
So, ready to put consumer insights to work? Then discover how Don’t Panic can help you elevate your marketing strategy with insights-driven campaigns tailored to your brand’s unique audience. Learn more about our services on our Strategy Expertise page.
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