Our customer insight fundamentals blog series aims to unpack important components of effective customer data analysis, prediction, and activation strategies. This article was curated from Tia Martin, Director of Customer Success at Faraday.
From aligning creative and messaging based on who your customers are, to monitoring how your customer base is shifting as it grows, having a solid understanding of the individuals that make up your customer base is critical to maintaining successful growth strategies.
What is a Customer Insights Report?
At Faraday, we generate a wide range of customer insights and deliver them to our clients in the form of Customer Insights Reports. These insights are interpretations of trends in human behavior over time. They are intended to be both informative and actionable.
I’ve coordinated customer insight discovery projects for dozens of consumer brands — it all starts with getting the right data together. Before diving specific data requirements, let’s take a look at how Customer Insights Reports are created.
What can Customer Insights Reports tell you about your customers?
Customer Insights Reports can reveal a wide range of meaningful trends and patterns about your customers. Some analyses include identifying what makes your customers stand out from the greater population or specific geographies, patterns in product preferences and shopping behaviors amongst key cohorts, what differentiates one-time purchasers and loyalists, etc.
There are a variety of ways in which companies can approach developing a Customer Insights Report, beginning with a qualitative approach that would include surveys and direct interviews. Another way to approach this would be through quantitative analysis, using factors such as actual purchase history or financial information. These methods can be used independently or combined to help strengthen marketing strategies.
Faraday focuses on the quantitative approach, by combining first-party customer data, (think purchase history) with third-party consumer data, (demographics, purchase history outside of this company, and more) to develop a holistic picture of who these customers are.
These reports are customized based on what types of first-party data are available, as well as the kinds of insights that are meaningful to your current objectives, as well as your business as a whole.
Data requirements for Customer Insights Reports
Third-party data is necessary to expand the breadth and depth of your customer insights. We’ve built our own consumer identity graph which is comprised of nearly 300 million U.S. consumers and includes demographic, property & purchasing data from about a dozen sources.
When it comes to developing a Customer Insights Report, the first step is getting the right first-party data to match into the Faraday Identity Graph (FIG), which allows us to enrich the data you already have on your customers with hundreds of additional attributes.
In order to match first-party customer data into FIG there are a few basic fields that are required, these include:
- First Name
- Last Name
- Physical Address
- Phone (optional)
- Email (optional)
Technically that is all we need to match into FIG. However, when it comes to generating meaningful insights and fully leveraging our prediction platform, more data is preferred.
Additional first-party data required for deeper analysis
Specific information about your customers such as when they became a customer and what they purchased will allow us to build predictions and provide insights on specific behaviors and actions future customers will take.
Below are some examples of the types of additional data that help expand the depth of your insights:
- When someone became a customer
- Items purchased
- Amount spent
- Number of purchases
- Transaction history (purchase dates, order value, products purchased, etc)
- Product(s) purchased
- Discount used
- Purchase amount
The rule of thumb is the more data the better. The more information our models can train off of, or the larger data set to glean insights from will allow for much more meaningful results versus just being based on a random or predetermined set of data.
Learn more about Faraday's customer insight discovery solution.