Few things are more important than garnering a deep understanding of how your audience thinks and feels. With the right customer insights guiding key business decisions, you can execute a far more strategic customer experience.
Traditionally, marketers have relied on third-party cookies to collect customer insights. While this is still a common way to collect valuable data, marketers across industries are scrambling to implement alternatives before third-party cookies are phased out over the next couple of years. If you don't already have a solid data enhancement plan in place, now is the time to prioritize it, because customer insights will only continue to grow in importance.
Why are customer insights important?
It’s well-established that customer insights are crucial to marketers. After all, you need to know how your audience thinks, feels, and behaves in order to tailor your marketing strategy to them. Customer insights include all this information, as well as customer reactions to specific marketing efforts. And when you know all that, you’re more likely to make informed decisions that better support your goals.
A firm grasp of customer insights allows you to create more personalized marketing campaigns to meet buyers where they are, even in the early stages of identifying potential new consumers. You can measure the success of current campaigns and predict the likely outcomes of new ventures to better target ad resources and focus on higher quality leads. And once the new audience is interacting with your brand, you can continue personalizing the experience based on updated insights to bring them further along the buying process in less time.
Conversely, if a product, service, or ad campaign seems to be losing steam, customer insights can tell you why, as well as where your efforts might be better spent. What are customers looking for instead? Which teams need to work together to revamp the marketing approach—or even the entire product or service—to better meet customer needs?
If customer engagement as a whole appears to be lagging, insights can tell you which part of the buying process needs attention. Look for trends that tell you whether to focus on realigning your marketing with the right audience segments on the appropriate platforms; reassessing product design or quality; or improving customer service, including web or app shopping experiences and support for questions or complaints.
Imagine trying to address any of these issues without customer insights. You may be able to do so, but not confidently!
According to Microsoft, “organizations that leverage their customer behavior data to generate insights outperform peers by 85 percent in sales growth.” No wonder so many teams are prioritizing customer insights! But what insights are they going after? More importantly, how are they putting those insights into action to drive tangible results?
Types of customer insights
The sky’s the limit when it comes to collecting customer insights—but you have to understand what you’re looking for and why. There are key three principles to keep in mind when assessing your customer insight strategy:
- Understand what type of data will have the most impact on your business
- Determine how to surface that data in a manner that respects consumer privacy
- Have a plan for how you’re going to use that data in your marketing strategy
For example, our Faraday Identity Graph includes insights about 270MM US adults in several key categories that are valuable to most marketing teams, all of them responsibly sourced without third-party cookies:
- Life events
- Hobbies and interests
- Shopping behaviors
Within these categories, insights include traits like age, income level, marital status, household size, and the average number of online or offline purchases. With this level of granularity, you no longer have to rely on guesswork to market to your audience. Every decision can be data driven. You’ll personalize every campaign with confidence and the results will back you up.
So, what does it look like to put these insights into practice? That’s where AI is a game-changer.
How artificial intelligence can help
Here are just a few of the benefits of relying on AI:
- Instant access, real-time retrieval. Leverage AI to surface invaluable customer insights and critical patterns in your data with the touch of a button.
- Consumer behavior prediction at scale. Algorithms can parse through billions of customer insights to predict things like a customer's lifetime value or likelihood to take an action — and they can do it for your entire audience, across every channel.
- Greater security and privacy. The best AI solutions are upfront about their standards, from SOC 2 audits and data encryption to GDPR and CCPA compliance. With these guarantees in place, you can rest assured that you're handling your customer data responsibly.
- Targeted audience creation. AI can also build predictive audiences based on customer insights to be deployed in advertising platforms, email service providers, direct mail services, and more, allowing you to get precise about who you want to reach and where.
- Proactive retention. By feeding customer insights into churn prediction models, you can get a crystal clear sense of who's at risk of churn — enabling you to be proactive instead of reactive with your re-engagement campaigns.
You’re missing out on all these benefits, among many others, if you don't introduce AI to your customer insights strategy. At Faraday, not only are we laser-focused on helping marketers responsibly collect customer insights — we're also passionate about helping them put those insights into action with AI. Once you check those two boxes, the magic really begins.