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How to generate consumer insights using text analysis

If you’ve ever found yourself Googling how to get consumer insights – look no further. Consumer insights are crucial in growing and fine-tuning a business. We’ll show you why they matter, what they can do, and how to get them.

What are consumer insights?

Consumer insight research is the process of gathering customer data to analyze purchasing behaviors, preferences and opinions. By pinpointing areas of strength or improvement, brands use consumer insights to enhance product and customer experience. 

Why is this important?

The math is simple. It costs 5x more to acquire a new customer than retain an existing one. Customer satisfaction not only makes money, it saves money. 

Concrete consumer insights give you the proof to confidently make strategic decisions tailored to the specific wants and needs of your consumer base. Consumer research eliminates the need for guessing or costly trial and error processes. Brands that utilize the power of consumer insights outperform competitors by 85%.

In the case of one retailer, a study found that they were able to more than double email open rate by analyzing consumer purchasing behaviors. The jump from 10-15% to 25-35% came down to the discovery that consumers made a purchase only once per year – but typically returned to browse online within days after a purchase. This retailer took advantage of the opportunity by communicating with consumers and marketing more products immediately after a purchase. 

Companies like Netflix owe much of their success to hyper-targeted and individually tailored user experiences. Based on previous viewing behavior, Netflix shows users the content they are most likely to watch. This collective user information all but ensures the success of original Netflix content. Tracing and analyzing viewing behavior pinpoints the specific genres, themes, actors and other elements that will result in a hit. 

The benefits of consumer insights

Decrease customer churn

Knowing what your consumers need and want decreases customer churn. Using consumer insights, you’ll know the strengths and weaknesses of your brand through the eyes of customers. Capitalizing on strengths and addressing weaknesses creates happy and satisfied customers.

Increase customer lifetime value

An understanding of purchasing behavior allows you to capitalize on potential sale opportunities. If you can convince a consumer to purchase three times per year, as opposed to one, you are increasing the value of that customer.

Personalize consumer experience

Personalize communications to specific audiences and consumers. Unique messaging delivers clearer, more resonant communications. By understanding why consumers of a target demographic purchase your product, you can advertise those elements to consumers with similar profiles. 

Market research vs. Consumer insights

I know what you’re thinking. This sounds an awful lot like market research, which we’ve already talked about. Market research and consumer insights are similar in terms of purpose, but different when it comes to application. 

Market research is the process of collecting consumer data to analyze. This is used as a general term to reference research pertaining to industries, competitors and customers. The purpose of market research is to provide knowledge and data.

Consumer insights result from market research. These insights are actionable and produce a narrative, leading to recommendations. The distinction between market research and consumer insights lies in the next steps. Consumer insights lead to strategic business decisions relating to customer experience. 

How to get consumer insights

Ask the right questions

When approaching consumer insights, you should have a business goal in mind. Uncovering that goal comes down to asking the right questions. Why are sales falling with 18-24 year-olds? How can we target a new geographic market? How has recent controversy impacted public brand perception?

In each of these questions, lies a business goal: Increase sales, expand to new markets, and improve brand perception. Without a clear business intention and next steps, consumer insights lose value. 

Find good data

Data, data, data – we can’t say it enough. Quality, representative data is crucial in ensuring the veracity of your consumer insights. Quality data includes a large number of respondents across different consumer demographics. Data sources can include reviews, surveys, forums and social media. Without reliable data, you will be left with unsound insights. 

The best data will include consumer profiles along with their comments. It can be useful to record respondent age, location, gender, product purchased, etc. Recording this information allows you to correlate opinions with demographics.

Craft a narrative

Every analysis tells a story. The next step is creating a narrative within the data by recognizing consistent themes and opinions. Connect the dots between opinions and consumers to identify the who, what, why, and what’s next of an insight. 

How can I get consumer insights and create a narrative? With the right tools. Relative Insight analyzes the data for you to produce statistically significant consumer insights that tell a story.

What is Relative Insight?

Relative Insight knows consumer insights. It’s in our name. Our NLP approach to text analysis extracts meaningful linguistic insights from any textual data source – surveys, reviews, social media and more. By comparing two or more written data sets, Relative Insight discovers the statistical differences in topics, words, phrases, grammar and emotion. Comparative text analysis applies an additional layer of contextual understanding, helping to see past frequency and uncover what makes an audience or data set unique. Use Relative Insight to enhance:

Voice of Customer

Voice of Customer research is another great way to develop a deeper understanding of your audience. Relative Insight analyzes social media conversations, forum posts, customer reviews and open-ended survey responses to learn how your customers communicate. Craft marketing communications to echo consumers, using the unique language, opinions and preferences of your audience.

Case study: How do rival brands develop unique tone of voice: Coke vs. Pepsi

Topic or brand analysis 

Use Relative Insight to understand the conversation surrounding a specific topic or brand – and how that discussion changes over time and across demographics. Relative Insight’s comparative technology analyzes the evolution of conversation, allowing you to understand consumer opinion on every level.

Case Study: Comparing NFL fan conversations ins the UK and US

Measure campaign effectiveness 

Measure the qualitative impact of marketing strategies using Relative Insight. Effective consumer insights go beyond quantitative metrics like followers and comments. Relative Insight compares conversation before and after a campaign or newsworthy event to track the evolution of public opinion.

Case Study: How Elon Musk single-handedly impacted the Bitcoin market

Survey analysis

Survey analysis made easy. Relative Insight automates the analysis process by examining open-ended survey responses within the context of a larger audience or demographic. Pinpoint the trends and opinions unique to your target audiences.

Case study: Analyzing survey data about periods

Uncover consumer insights