Why is consumer insight better than ‘gut feel’?
If I had money for every time a client said they knew who their customers were or had a ‘good gut feel’, I wouldn’t need to carry on working. The reality is that a gut feel is never as good as consumer insight (definition).
Consumers are savvy today and want to be treated as individuals; they expect companies to know when and when not to communicate with them. It’s all about understanding your customers and prospects and treating them as individuals, providing information and promotions when they want it.
Consumer Profiling V ‘gut feel’
So what happens when you think you know your customers, but actually you don’t. You have a gut feel of who they are, but it’s wrong. You think everyone wants to know about everything you offer, when they don’t. It might drive some sales, but it is more likely to alienate those that were showing signs of interest. Getting bamboozled with e-shots or calls about every product or service a business has will in all likelihood drive prospects to unsubscribe, stop visiting your venue and/or go to a competitor who hasn’t alienated them.
Your ‘gut feel’ if not accurate may not disastrously harm your business but it’s not going to be doing you any favours either. Customers appreciate receiving information that demonstrates you understand what they’re interested in, shows you value them as a customer and that you respect their need for information and promotions on their terms, for services and products relevant to them.
Customer catchment analysis
Do you know how far your customers travel to visit you or do you advertise with a ‘finger in the air’ approach ? The spatial distribution of your consumers will vary by service or product. The nature of their visit and transactional spend will be varied, so if you don’t know where they are, then you can’t accurately market to them. If you ‘blanket market’ you won’t be distinguishing between different customers and prospects and how far they are realistically prepared to travel. We might all have received an offer in the past that looks great until you realise it’s a 5 hour round trip!
Gut feel can point you in the right direction, but wouldn’t it be better to have real insight, a good understanding of who your customers are, not just broadly but by the service or product you are offering. If you undertake consumer profiling you can gain more than insight, knowledge and understanding of your customer base. It can help underpin your future strategy and decisions. You understand your customer spatial spread or catchment by product or service. You now know who to contact about each promotion, you can distinguish between those that are interested in discounts to those that are brand or experience led. Customers appreciate being treated as individuals, if you get it right, you can create a loyal following, increase your up and cross sell marketing opportunities and attract new customers.
The reality of consumer insight
Consumer insight is not just about informing you of your customers, but providing you with the insight and tools to drive better marketing practice, build long term relationships with your customer base, appeal to your prospects and increase your return on investment. If you aren’t marketing to everyone about everything, but marketing to fewer who are more likely to buy , it stands to reason that your budget will worker harder for you.
Will a gut feel harm your business, depends how wrong it is ….. but it’s probably not driving people through your doors.
We deal in real insight not ‘gut feel’.
If you would like to find out more about our consumer profiling and segmentation projects then contact us now or call a member of our team on 01926 887555.
What does your customer base look like?……..