53 Focus Group Questions to Ask for Better Insights

Focus group questions allow discussion to be used as a means of gaining detailed qualitative information. From issues regarding PR to product specifications, nothing brings more information than an in-depth, interactive conversation. Find out below how to ask the right focus group questions to understand the market better.

Focus groups can be highly useful, but too often, you won’t get the information that you need from them. They have disadvantages; whether that’s due to misinterpretations, misunderstandings, or simply recording information the wrong way, you can end up more confused than when you started.

Focus group questions can lead to confusing & conflicting information if not asked in the correct manner.
Focus group questions can lead to confusing & conflicting information if not asked in the correct manner.

The key to great focus groups appears before you’ve even opened your mouth, and that’s writing excellent focus group questions. 

In this piece, we’re going to help you nail this aspect. We’ll talk a bit about focus groups, and discuss use cases, but – more importantly – we’ll provide you with dozens of amazing focus group questions that will help you refine your market research and understand what your customers want and need.

Sometimes, it’s not what you say but how you say it that makes the difference.

What are the four types of focus group questions?

Focus groups function similarly to any conversation or debate you might have. You need to break the ice and introduce the main topics in a way that is easy to understand.

There are four types of focus group questions you can ask, and these should be used no matter the topic that you’re exploring. 

These consist of:

  • An introduction.
  • A prompt. 
  • A discussion.
  • And a way to wrap up the discussion without leaving anything unsaid. 

In that way, focus groups are similar to an essay or article in structure.

Let’s take a look at the four types in more depth and learn why they’re necessary.

Introductory focus group questions

Introductory questions are the foundations upon which your group will form their discussion. 

Essentially, introductory questions set the stage for what is to come next. They’re ideal for ensuring that everyone is on the same page, but more importantly, they allow the group members to relate to one another. 

They should be simple and easy to answer, as it can prove difficult for participants to answer fully and honestly to strangers.

Introductory questions also serve as a means to gauge everyone’s experiences with the topic that you will be discussing. Someone who’s been interacting with you on a monthly basis will have more insight on the topic compared to someone who does so once in a blue moon.

Some examples of introductory questions might be:

“Welcome to our focus group. Today, we’ll be discussing [topic]. Could each of you please share a story about how you’ve interacted with [topic] recently?”

“Hello, and welcome to our focus group. How did everyone find the journey here?”

“We’re [brand], and today we’re leading this focus group. Can you tell me when you last bought something from us?”

In each of the above examples, a context is given, and a simple question is asked. While these might seem irrelevant to the larger discussion, you should always ensure that the results are noted down for context.

Information is power.

Exploratory focus group questions

These are the sparks that will light a fire in your participants.

Exploratory questions are always directly linked to the topic that you intend to gather information on and are designed to provoke discussion among the group. 

These questions should be carefully designed with customer personas in mind so as to steer the conversation in the direction that you desire.

Each exploratory question should be specific enough to determine what your group will discuss but vague enough so that there isn’t a straightforward and easy answer. 

While that might sound paradoxical, remember your aim is to get your participants talking, not simply to get a yes or no answer.

Some exploratory questions that you might ask are:

“Could you give me an example of a bad experience you had with us?”

“If you could choose {this feature} or {that feature} when looking for product features, which would you pick and why?”

“What alternative features do you think we should include with our product?”

Follow-up focus group questions

Follow-up questions happen in the discussion period and are intrinsically linked to exploratory questions. They’ll always come after an exploratory question has been asked and are related to that specific discussion.

Because of this, some analysts might place them within the same category. However, there are distinct differences between the two.

The key difference is their focus. Exploratory questions are vague. They’re designed to provoke a whole host of potential opinions from coming forth. 

Follow-up questions are precisely the opposite. They’re designed to get pinpoint accurate information on how your participants feel, think, and might act. 

Some examples of follow-up questions are:

“You said that you dislike this feature. Why specifically would you say that?”

“You’ve pointed out that there isn’t much flexibility. How would you go about improving that if you were the designer?”

“When you use this item, you said you felt frustrated. Could you tell me a little bit more about what frustrates you about it?”

In each of the above examples, context is taken from the previous discussion and used to form the question. 

It can be very tricky to write follow-up questions in advance since they’re so intrinsically linked to how the discussion evolves. Humans are unpredictable factors, and these discussions don’t always go in a direction that you anticipate.

After all, if you could perfectly predict what people were going to say, what would be the point of a focus group?

The key to forming good follow-up questions is thinking on your feet. It’s not easy, but if you know the topic well, you should have an idea of what information you need and how to aim these questions correctly.

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Exit focus group questions

Exit questions are exactly what they say on the tin, questions designed to end the discussion and wrap up the focus group.

While it might seem easy, there are several factors that you should keep in mind.

  • Not everyone may have gotten to air their opinion fully over the course of the discussion. 
  • Someone may want to mention something tangentially related.
  • Even with hours and hours, you’ll never be able to predict every facet of the topic that someone may want to mention.

Exit questions are designed to solve these issues. Essentially, their purpose is to ensure that you get all of the information you can possibly get out of your focus group.

Let’s take a look at some examples:

“Thank you for your time. Before we wrap up, is there anything that you’d like to mention?”

“Do any of you think there’s something that we missed in our discussion today?”

“If we were to cover other factors involved, which do you think would be most relevant to the discussion we’ve had today?”

Each of these is short and to the point, but also open to interpretation. This way, any information not already given can be obtained with ease.

Are you ready for even more focus group questions?

Focus group questions examples to focus your participants

Describing the four stages of questions in an abstract sense is all well and good, but how do you make it relevant to your topic?

Don’t fret, for we’re here to provide you with some fantastic examples of focus group questions. Each of the following sections will contain several questions on a specific topic, as well as some general advice on how to use them. 

Remember, though, context is key! Be sure to mold the questions to fit your business, your products & services, and your way of doing things.

Focus group questions for new products

❔ “Were we to create an updated version of [product], what features would you like to see added?”

Features are the backbone of most products, and unfortunately, you can’t usually put them all into a single package. This is especially true of physical products but applies to software too.

When asking this question, you gain insight into what features that were left off would be of use to your customers, and by delving deeper with follow-up questions, you can find out why. By using this information, you can make your product better in the next iteration.

❔ “Who or what product do you think would rival any new launch we put out?”

There’s no use in launching a brand-new updated product if your competition surpasses it a week later. Knowing who and what your customers would view as competition lets you know what you have to account for in your marketing and placement strategies.

Remember, customer perception doesn’t always equal reality. You might judge your competition by cold, hard facts, but the general public won’t have access to all your information. It’s entirely possible for an inferior product to beat you out. 

❔ “Would you be interested in beta testing the new version of [product]?”

Not only will the use of this question potentially gain you willing testers that are enthusiastic about your latest releases, but it allows you to see whether your customers are interested in testing products before launch and/or becoming involved in the design process.

Focus group questions for marketing

“How did you first come across us?”

If you know where your marketing strategies are seeing the most engagement, you’ll be able to judge how well they’re doing.

This question is most often used in surveys where you can judge proportions from a high number of responses but is useful in focus groups too. 

The discussion that comes with a focus group can reveal not only where customers first encountered you, but what their thought processes were afterward.

“When you shop online for [product], what sites do you generally use?”

While not directly related to your brand, knowing where your customers would look to find a specific product or service tells you where you should prioritize your efforts.

To use a rather extreme analogy, there’s no use putting up a great big billboard in the middle of New York if your customer base is located in Los Angeles.

“What methods of communication with us do you prefer?”

In the 21st century, there are dozens of different ways in which you can communicate with others.

The problem is, different demographics have preferences for different means, so which do you choose? Well, you ask.

Your customer will generally have qualities in common with each other, and one of those is communication methods. You’re likely to have more than one demographic of customers, so expect different answers here depending on who you ask.

“How often would you prefer for us to communicate with you?”

If you’re anything like the average person, you probably get newsletters & similar email marketing materials that you subscribed to but don’t actually read.

While it’s a harmless nuisance to most email users, what you might not know is that unopened newsletters can actually harm your credibility as an email sender! Oh no!

By matching your customers’ schedules on when they prefer to receive communications from you, you can ensure that they’re more likely to actually open and read them as opposed to simply deleting them, or worse, sending you to the spam folder.

While a focus group is a great start to understanding your customers’ preferences, creating an email preference center where each subscriber can tell you exactly how they want you to communicate with them is a must.

“Would you consider our advertisements intrusive, or say that they know too much? If so, where have you experienced this?”

When dealing with personalization, there’s a fine line between being relevant and coming across as knowing a scary amount of details about you. Computers, which we rely on for advertisement algorithms, aren’t the best at knowing where the line is; bless them.

A key factor in e-commerce is product recommendation, however, you need to balance that against coming across too strongly. Once you’ve identified the areas in which your advertisements put customers off, you can reassess the methods you use in order to lessen further damage.

Customer experience

“How has your opinion of us shifted in the past X amount of months/years? Why would you say that is?”

Customer experience isn’t static, and knowing how opinions are shifting can help you decide whether your CX strategies are working or not.

One thing to keep in mind when asking this question is that time periods and the experiences tied to them are highly contextual, and the specific events happening around that time need to be taken into account.

“Do you use our products more than you did in the past? Or would you say your usage is decreasing?”

Customer interactions are the basis of customer experience. You can’t say you’ve experienced something if all you did was observe it from afar, after all.

This question aims to judge how these customer interactions are progressing and whether or not you need to make changes to your strategies in order to retain customers.

Once again, this question is highly contextual. As the worldwide COVID-19 restrictions come to an end, a disposable mask manufacturer would expect purchases to decrease. This wouldn’t be a CX red flag for them, as the underlying reasons behind the drop aren’t within their control.

“Are there any particularly positive experiences you’ve had with us? What made them stand out?”

When dealing with customers, it’s the standout experiences that affect opinions more than most. 

Let’s say you’ve had a particularly rough day, and the cafe you go to is busy. You don’t expect much, but the person behind the counter notices your bad mood and tries to cheer you up.

You’d remember that more than if they simply gave you your order and waved you away, right?

Standout experiences let you know when your brand went the extra mile and can give you a blueprint as to how to perform brilliant customer service in the future.

“Are there any particularly negative experiences you’ve had with us? What made them stand out?”

On the other hand, there are bad experiences that stand out too.

To use the analogy from above, you’ve had a terrible day, and when you drop by the cafe, your coffee is cold! “That’s it,” you say to yourself. “I’m never coming here again!”

While not exactly a fair and rational judgment, it’s nevertheless the thought process that many of your customers (or ex-customers?) would follow if they had a particularly bad experience with you. 

It’s been proven that negative interactions are far more impactful on a person’s feelings than positive ones, and one bad experience can override dozens prior.

These experiences provide a blueprint of what not to do, essentially, as they’re the events that stuck in the minds of your participants as particularly bad. While it’s unfortunate that they had these experiences in the first place, you can turn them into teaching moments to ensure that they aren’t repeated.

“From your experiences, can you say what you expect when purchasing something from us?”

Experiences create expectations. That’s true whether you’re talking about business or baseball, and the experiences that your customers have with you will shape what they will come to expect from their interactions.

Sometimes these experiences are controllable and influenceable, sometimes not. The key is to identify which parts of said experiences & expectations you can replicate and make a part of your repertoire.

Focus group questions for customer perception

“Would you recommend our brand to others? Why/why not?”

This question lets you get to grips with one of the basic questions of customer perception, whether or not you’re a brand to recommend to others.

While it’s not absolutely essential in business to have customer advocacy, it is a huge boost to your sales ability without you having to spend a penny.

“What made you choose us over the alternatives?”

The root differences between you and your competition reveal a lot about how your brand is perceived. Knowing what you do better than others allows you to maintain an edge, whether that’s an advertisement, product features, or simple availability.

“What would make you choose an alternative over us?”

On the other hand, there are always things that your competition will have the edge in. By identifying these, you can factor them into your product strategy and hopefully overcome any weaknesses it possesses.

“Where would you expect to find our products?”

Are you a part of the eye-level shelf where the premium brands lie or are you on the bottom shelf with the discounts? Are you found solely in specialized stores, or could you be found in a supermarket?

When you know exactly where your customers expect to find you, it can tell you a lot about how they view you.

“When you compare [product] to the previous version, how well do you think we incorporated customer wants & needs?”

This one is applicable to all types of products barring those expected to last a lifetime but is mostly aimed at those with short lifetimes.

Essentially what you’re asking is, “do your customers feel heard?” which has been rated as one of the most essential qualities for a brand to possess.

Focus group questions for competitor research

“If you intend to buy [product], what brand comes to mind besides us?”

When you think of a certain product, there are usually go-to brands that you’ll look for, no?

In most cases, there is more than one brand that fits the bill. Knowing who your customers think of besides you when looking for a certain product allows you to identify your biggest rivals on a practical level.

“Who do you see as our biggest rival? The Xbox to our Playstation, if you will?”

Sometimes you may have a direct competitor, and sometimes not. It’s always useful to see who your customer base sees as an alternative, even if, in practice, they might not purchase from them due to said rivalry.

“Is there any situation where you’d prefer our competitor’s product to ours? Why is that?”

Knowing what your competition is doing is important. Knowing what they’re doing that’s better than what you do is even more so.

Specifics are key here. You should ask your participants to provide information on features, availability, etc., in order to judge these situations and how you might turn them to your advantage.

“What would you recommend we do to become more useful/enjoyable than [competitor]?”

Specifics are good. By narrowing the field to a single competitor, you allow specific strengths of theirs to come to light, ones which you can learn from.

When you delve further into this topic, you can use follow-up questions to find out why these competitors are preferred to you.

“In what areas does [product] succeed where its competitors fail?”

In the world of product design, it’s often more important to be better than the other option than it is to simply be good. By finding out where you stand out, you can ensure that future versions maintain and amplify these qualities to retain customers.

Focus group questions for branding

“When you see our brand, what immediately springs to mind?”

Knowing what gut reactions customers have to your brand is important. These feelings are the root motivations behind every interaction that they will ever have with you. Knowing what customers feel will allow you to shape the way you interact with them in the future.

“How much more would you be willing to pay for our products over an alternative?”

Brand equity is the ability to charge more for products with your logo on them. It’s a form of trust and it shows that customers value your brand highly. 

By asking this question, you’re able to both measure your brand’s value and quantify it with a numerical value (often a percentage).

“What kind of reputation does our brand have when it comes to X?”

Of course, a brand can have a good reputation overall but a bad reputation when it comes to certain practices.

Knowing precisely how you are viewed in certain circles is key to improving your practices, as well as maintaining the ones in which you are held in high regard.

“Can you name a few positive aspects of our brand?”

Another vague question, this one allows you to open the topic to any and all answers, not simply the ones that you anticipated. 

By asking about the positive aspects of your brand, you’re going to know what to continue doing in order to keep customers loyal.

“Can you name a few negative aspects of our brand?”

On the flip side, there are going to be negative aspects, no matter how hard you try to purge them.

By knowing your weaknesses, you can improve upon them. Remember, these are merely the negative aspects in the minds of customers and can be inaccurate!

If that’s the case, you should look to spreading awareness about your practices rather than improving them.

Focus group questions for industry trends

“Have you noticed any new trends in our industry recently?”

While you’re certainly going to want to keep on top of industry trends, there’s always a chance that you’ll miss something or simply not be able to see it because of perspective bias.

Not only can your focus group identify trends that you may have missed, but you’ll also get information on their perspective about what’s going on in the industry and what they expect to change in the coming months.

“What sources do you get your industry news from?”

When you’ve identified where your customers obtain their news, you can look to involve yourself with these sources further. 

Whether that’s interviews, collaborations, etc., becoming more visible to your target audience should be your aim.

“Is there anything in our industry that you think is lacking?”

Industries are made up of businesses, which are made up of people, and people miss things sometimes. 

There’s every chance that customers are looking for something but haven’t been able to find it because it simply doesn’t exist in the industry yet. If you’re the one who asks them about it first, you’re the one who gets a leg up on the competition.

“Are there any individuals or publications that you see as industry experts and would trust their opinion?”

Whatever the industry, there are always those big-name sources or people with lots of letters after their names that are trusted more than anyone else.

Why? Well, mostly it’s because they’re seen as knowing what’s up. They can tell the good stuff from the bad, the value-for-your-money from the ripoffs.

Whether these big names are actually experts, that’s largely irrelevant. The important thing is that your customer base will think they are, so it’s best to either get them on your side or avoid their wrath.

“When you’re keeping up with our industry, what type of content do you prefer to engage with?”

Knowing what type of content your customers engage with is just as important as knowing where they look to obtain it. 

Short-form vs. long-form, essays vs. articles, technical specifications vs. overall statistics, all of these are different forms of content that say and do different things. If you know which of these is preferred, you can keep your industry engagement in those forms so as to appeal to your customer base.

You’ll likely have more than one type of customer, which means you’ll have more than one type of content that is preferred. 

Focus group questions for positive aspects of your products

“When using [product], what are you always satisfied with?”

By using the term “always,” you ensure that you receive the most positive aspects of your product. You can also use this question as a starting point to rank product features and aspects, asking when they are “mostly satisfied” and “usually satisfied.”

“What situation would make you reach for [product], as opposed to an alternative?”

Asking for the motivations behind the purchase will grant you insight into customers’ thought processes. The strengths that are the root causes of their purchase are what you should aim to obtain, whatever those may be. 

“What made you decide to purchase [product]?”

This question allows for any motivation behind the purchase to shine through, even some that you may not expect. Sometimes products have uses that even the creators didn’t think of!

“When you first saw [product], what stood out to you?”

When looking through the eyes of someone unfamiliar with a product, the first things they see will shape their experiences with it. Ensuring that you know which features are the most prominent will allow you to influence that first encounter in a positive way.

“What features of [product] are the most useful to you?

Product purchases are driven by their usefulness. If you know what features are essential, you can ensure that those are preserved and advertised further in the future.

Conducting a focus group vs. a survey

A focus group is a small group of people who are brought in and asked questions about their experiences with your brand. You ask them questions, they answer, and you analyze the results.

So what makes this any different from customer satisfaction surveys or other forms of collecting feedback? Why should I bother bringing a group of people into a room together when I can just as easily send out emails?

The answer to that is simple, and it lies in group dynamics. 

You see, in a focus group, the participants don’t just rattle off answers like a computer. They talk about them with others and can come to conclusions that an individual couldn’t reach alone.

Ever had a feeling that you needed to put into words but never could, only for someone else to describe it perfectly? That’s the type of interaction that can happen in focus groups.

While surveys can give clean, easy-to-analyze answers, they often lack the depth that focus groups can provide. 

If you’re looking to the future and offering “what-if” scenarios, a focus group’s in-depth discussion will give you a much better idea of your customers’ responses to those scenarios than surveys ever could.

There’s also the fact that focus groups usually have a moderator, someone who represents the company and will be actively involved in the group.

They’ll ask the questions, set the stage, and keep things on track. You can think of them as being akin to a courtroom judge, only not as likely to bang on a gavel.

Why are focus groups useful?

So, focus groups can give you in-depth information. But how can they be used? What information can they help you find?

Well, as mentioned before, the key to focus groups is discussion. 

Focus groups are all about diving into the minds of your customers, about understanding what they want, what they need, and what drives them. 

Unique perspectives coming together

Different people will have different perspectives depending on their situations in life. That’s true in any regard, but especially important with respect to focus groups.

You see, different perspectives combined will give you a much clearer picture of the situation you’re in than simply seeing from those angles independently.

Thank you to our friends at CCRC for showing this concept perfectly. Their VIEWPOINTS podcast exemplifies this concept, bringing different perspectives togetherto fully explore topics.

Combined perspectives exemplify the saying “more than the sum of their parts.”

Non-verbal information

There’s a lot of information in what people say, but even more information in how they say it.

Take, for example, sarcasm. It’s hard to detect in writing, and might even cause you to think that a person believes the opposite of what they actually do.

There’s also tone, body language, and a whole host of other indicators that can tell you a lot about how a person feels. Using cameras to capture these provides you with an easily accessible, accurate idea of what’s going on.

The more strongly you feel about something, the more it shows up in how you present your case. You can say that you dislike two individual aspects or features of a product, but if your tone is clearly stronger when speaking about one of those, it’s obvious which one you hate more.

All in all, when done right, focus groups can give you a lot more information than any text-based source of information. 

Interactive questioning

When answering a survey, you’ll often put down the first thing that comes to mind when answering a question.

After all, most people’s aims when completing a survey are to get it done, not to think it over for any great length of time.

The facet that puts focus groups in a different light from other methods is the fact that you can interact and respond to the answers that are given to you. This provides more information, more depth, and a greater understanding of what the person in question is thinking.

Surveys, questionnaires, and ratings are all well and good, but nothing gets to the heart of the matter like a conversation.

Which focus group type should you pick?

It might not come as a surprise that there are multiple types of focus groups. These largely perform the same function but differ slightly in their methods. 

Let’s take a look at the most common types.

Single-focus

The single-focus group is the traditional focus group, where a group of participants actively discuss topics when prompted by a moderator. 

There is no split in the group, no division that sets participants apart from each other, and as such, all participants are treated as equals.

Two-way

In a two-way focus group, you have two separate groups. One discusses the topic, while the other observes the discussion. Following that, the second group conducts their own discussion.

The key to this type of focus group is that seeing the way the first group interacts with the topics can alter the way in which the second group thinks, opening them up to new ideas and perspectives without introducing a direct form of conflict.

Two-way focus groups are useful when you have a split customer base, where two or more demographics might think about your brand or product differently.

Dueling moderators

So, we get the moderators to face off with pistols at dawn, right?!

Hehe, no, that’s not the meaning of the word duel that happens here, but the general gist is the same.

In a dueling moderators focus group, you have two moderators who take specific sides in an issue that’s being investigated in order to prompt discussion of opposing viewpoints.

These types of focus groups are intended to investigate how an opposing viewpoint might affect customers’ opinions. You can think of it as playing devil’s advocate, whereby conflict is purposefully used to gain more in-depth information than you’d otherwise get.

After all, if everyone in the group agrees on a certain topic, you’re unlikely to delve further.

Wrapping Up

In the end, a focus group is about as useful as you make it.

The way you deal with the information that’s given to you by your focus group is just as, if not more important, than what you obtain from it. That’s why having a good brand strategy is crucial to modern business.

Your brand strategy should revolve around your customers – what they want, think, say, and do. Customers are the lifeblood that drives business, and without them, your brand will falter.

Great focus group questions can assist you significantly in creating a customer-centric brand strategy, using the knowledge you’ve gained to become relatable and reliable, and creating a brand identity that truly stands out.

You can find out more about brand strategy and innovation in our guide here.

 

Natural Language Processing (NLP) Techniques & Examples

Data is key to understanding what customers want and need. But sifting through mountains of data and analyzing it can prove a daunting undertaking. That’s where advanced AI tools come in. In this article, we’ll discuss natural language processing techniques (NLP) and share examples of their application, examining how they can drive your growth.

The AI revolution is coming. Today, 35% of companies report using AI in their business, an increase of four percent from 2021. And an additional 42% report that they are exploring ways to begin using AI. 

No matter where you are in terms of readiness to begin adopting artificial intelligence and machine learning in your company, it’s to your organization’s benefit to learn about these emerging technologies and understand how you might be able to apply them in order to improve business outcomes. 

Natural language processing, or NLP for short, is the perfect place to start. 

It’s a powerful application of machine learning technology that can be used in a wide variety of industries for countless applications to help with everything from streamlining business processes to boosting efficiency to improving e-commerce customer experience and brand loyalty.

In this article, we’ll dive into everything you need to know about natural language processing including: 

  • What it is.
  • Its advantages.
  • Relevant techniques.
  • Applications.
  • And, finally, real-world examples.

Let’s start from the top.

What is natural language processing?

Natural language processing is a branch of artificial intelligence that aims to help computers to understand human language input in the form of text or speech. 

NLP combines multiple disciplines, including computation linguistics, machine learning, deep learning, and statistics. 

These technologies work together to essentially give computer software the ability to process and understand human language in the way that another human could, including its meaning, intent, and sentiment. 

NLP technology is used in a variety of applications including:

  • Digital assistants such as Siri.
  • Speech-to-text dictation software.
  • Voice-operated GPS systems.
  • Customer service chatbots.
  • Predictive text.
  • Digital voicemail.
  • Autocorrect.
  • Search autocomplete.
  • Email filters.

Additionally, companies are increasingly using NLP to create enterprise solutions that help businesses simplify processes, increase productivity, and streamline operations.

The benefits of employing natural language processing

It’s standard these days for companies to collect, store, process, and analyze large quantities of numerical data in order to generate valuable insights that can improve results. 

Natural language processing opens up and empowers businesses to make smarter decisions that are based on larger sets of data. Further, this collection and analysis process happens quickly, especially compared to traditional methods.

For this reason, natural language processing has a number of relevant advantages. 

When working with so much data, you’ll be able to generate insights to improve customer experience with the launch of new products.

On top of that, using NLP helps businesses become more efficient by automating work processes that require reviewing or analyzing texts. This frees up employees to work on other needle-moving tasks.

Taken together, you’re bound to see improved productivity, reduced costs, and an uplift in revenue.

The top techniques used in NLP

NLP is a rich field requiring the use of a number of different techniques in order to successfully process and understand human language. Below, we review and define a selection of the techniques commonly used in NLP technology. 

Tokenization 

Also called word segmentation, tokenization is one of the simplest and most important techniques involved in NLP. 

It’s a crucial preprocessing step in which a long string of text is broken down into smaller units called tokens. Tokens include words, characters, and subwords. They are the building blocks of natural language processing, and most NLP models process raw text on the token level.

An example from Medium of how a simple phrase can be broken down into tokens.

Stemming & lemmatization

After tokenization, the next preprocessing step is either stemming or lemmatization. These techniques generate the root word from the different existing variations of a word. 

For example, the root word “stick” can be written in many different variations, like:

  • Stick
  • Stuck
  • Sticker
  • Sticking 
  • Sticks
  • Unstick

Stemming and lemmatization are two different ways to try to identify a root word. Stemming works by removing the end of a word. This NLP  technique may or may not work depending on the word. For example, it would work on “sticks,” but not “unstick” or “stuck.” 

Lemmatization is a more sophisticated technique that uses morphological analysis to find the base form of a word, also called a lemma. 

The difference between how stemming and lemmatization work is illustrated in this image from itnext, using different forms of the word “change.”

Morphological segmentation

Morphological segmentation is the process of splitting words into the morphemes that make them up. A morpheme is the smallest unit of language that carries meaning. Some words such as “table” and “lamp” only contain one morpheme. 

But other words can contain multiple morphemes. For example, the word “sunrise” contains two morphemes: sun and rise. Like stemming and lemmatization, morphological segmentation can help preprocess input text. 

John Hopkins shows morphological segmentation by breaking the word “unachievability” into its morphemes.

Stop words removal

Stop words removal is another preprocessing step of NLP that removes filler words to allow the AI to focus on words that hold meaning. This includes conjunctions such as “and” and “because,” as well as prepositions such as “under” and “in.” 

By removing these unhelpful words, NLP systems are left with less data to process, allowing them to work more efficiently. It isn’t a necessary step of every NLP use case, but it can help with things such as text classification. 

Examples from geeksforgeeks of what short phrases look like with the stop words removed.

Text classification

Text classification is an umbrella term for any technique used to organize large quantities of raw text data. Sentiment analysis, topic modeling, and keyword extraction are all different types of text classification. And we’ll talk about them shortly.

Text classification essentially takes unstructured text data and structures it, preparing it for further analysis. It can be used on nearly every text type and help with a number of different organization and categorization applications. 

In this way, text classification is an essential part of natural language processing, used to help with everything from detecting spam to monitoring brand sentiment. 

Some possible applications of text classification include:

  • Grouping product reviews into categories based on sentiment.
  • Flagging customer emails as more or less urgent.
  • Organizing content by topic.

Sentiment analysis

Sentiment analysis, also known as emotion AI or opinion mining, is the process of analyzing text to determine whether it is generally positive, negative, or neutral. 

As one of the most important NLP techniques for text classification, sentiment analysis is commonly used for applications such as analyzing user-generated content. It can be used on a variety of text types, including reviews, comments, tweets, and articles. 

The Revuze platform employs sentiment analysis to understand how customers feel about various aspects of products. This allows companies to gain insights about consumers’ needs in real-time, and act accordingly to improve overall CX.

In this example from the Revuze platform, you can see how customers rate different aspects of the product.

Topic modeling

Topic modeling is a technique that scans documents to find themes and patterns within them, clustering related expressions and word groupings as a way to tag the set. 

It’s an unsupervised machine learning process, meaning that it doesn’t require the documents it is processing to have previously been categorized by humans. 

A sample NLP workflow from Frontiersin demonstrates how Input text is proprocessed before undergoing topic modeling, which breaks it into several topics. 

Keyword extraction

Keyword extraction is a technique that skims a document, ignoring the filler words and honing in on the important keywords. It is used to automatically extract the most frequently used and essential words and phrases from a document, helping to summarize it and identify what it’s about. 

This is highly useful for any situation in which you want to identify a topic of interest in a textual dataset, such as whether there is a problem that comes up again and again in customer emails. 

Text summarization

This NLP technique summarizes a text in a coherent way, and it’s great for extracting useful information from a source. While a human would have to read an entire document in order to write an accurate summary of it, which takes quite a bit of time, automatic text summarization can do it much more quickly.

There are two types of text summarization:

  • Extraction-based – This technique pulls key phrases and words from the document to make a summary without changing the original text.
  • Abstraction-based – This technique creates new phrases and sentences based on the original document, essentially paraphrasing it.

An example from the Microsoft tech community of how the two types of text summarization work.

Parsing

Parsing is the process of figuring out the grammatical structure of a sentence, determining which words belong together as phrases and which are the subject or object of a verb. This NLP technique offers additional context about a text in order to help with processing and analyzing it accurately. 

This is how parsing might work on a short sentence.

Named entity recognition

Named entity recognition (NER) is a type of information extraction that locates and tags “named entities” with predefined keywords such as names, locations, dates, events, and more. 

In addition to tagging a document with keywords, NER also keeps track of how many times a named entity is mentioned in a given dataset. NER is similar to keyword extraction, but the extracted keywords are put into predefined categories.

NER can be used to identify how often a certain term or topic is mentioned in a given data set. For example, it might be used to identify that a certain issue, tagged as a word like “slow” or “expensive,” comes up again and again in customer reviews. 

A sample by Shaip of how named entity recognition works. 

TF-IDF

TD-IDF, which stands for term frequency-inverse document frequency, is a statistical technique that determines the relevance of a word to one document in a collection of documents. It works by looking at two metrics: the number of times a word appears in a given document and the number of times the same word appears in a set of documents. 

If a word is common in every document, it won’t receive a high score, even if it appears many times. But if a word frequently repeats in one document while rarely appearing in the rest of the documents in a set, it will rank high, suggesting it is highly relevant to that one document in particular. 

Natural language processing applications 

NLP is a quickly developing technology with many different applications for organizations of every kind. Some of the different ways a business can benefit from NLP include:

  • Machine translation – Using NLP, computers can translate large amounts of text from a target to a source language, which can be used for customer support, data mining, and even publishing multilingual content.
  • Information retrieval – NLP can be used to quickly access and retrieve information based on a user’s query from text repositories such as file servers, databases, and the internet.
  • Sentiment analysis – This NLP technique can be used to monitor brand and product sentiment to help with customer service and product sentiment, among other applications.
  • Information extracting – This process, which includes retrieving information from unstructured data and extracting it into structured, editable formats, can be used for business intelligence, including competitive intelligence.
  • Question answering – Question answering uses NLP to give an answer to a question asked in natural human language and can be used for chatbots and customer support.

Natural language processing examples

Here are just a few more concrete examples of ways an organization might apply NLP to its business processes.

NLP in ChatGPT

One of the most popular recent applications of NLP technology is ChatGPT, the trending AI chatbot that’s probably all over your social media feeds. ChatGPT is fueled by NLP technology, using a multi-layer transformer network to generate human-like written responses to inquiries submitted in natural human language. ChatGPT uses unsupervised learning, which means it can generate responses without being told what the correct answer is. 

ChatGPT is an exciting step forward in the application of NLP technology for businesses and individuals alike, with many saying it can rival even Google. Possible uses for ChatGPT include customer service, translation, summarization, and even content writing. 

NLP for customer experience analytics

Using NLP for social listening and customer review analysis can lead to tremendous insight into what customers are thinking and saying about a brand and its products. With sentiment analysis and text classification, companies can:

  • Understand general sentiment about the brand – Does the public feel positively or negatively about us? 
  • Identify what customers like and dislike about a service or product.
  • Learn what new products customers might be interested in.
  • Know which products to scale and which to pull back on.
  • Discover insights that can be used to improve customer experience and boost customer satisfaction. 

For example, let’s say spicy chocolate brand Shock-O just released a new Popping Jalapeno Chocolate and wants to get a sense of whether or not customers like it. Shock-O can use an NLP-powered tool to analyze customer sentiment and learn what people are saying about the Popping Jalapeno Chocolate, whether they speak about it positively or negatively, and what themes come up again and again in reviews of this product. 

All of this information can then be used to determine whether to continue producing Popping Jalapeno Chocolate, whether to increase or decrease its production of it, whether to make it spicier or less spicy, etc. 

NLP for customer service

90% of customers believe that it is essential or very important to receive an immediate response when they have a question. Yet human customer service representatives are limited in availability and bandwidth. 

This is just one reason why NLP-powered chatbots are growing in popularity. By being able to properly understand and analyze customer inquiries, chatbots can offer the necessary answers to questions, helping to improve customer satisfaction while cutting down on agents’ workload.

NLP can also be used to process and analyze customer service surveys and tickets in order to better understand what issues customers are having, what they’re happy with, what they’re unhappy with and more. All of this serves as crucial data for boosting customer happiness, which will, in turn, increase customer retention and improve word-of-mouth.

NLP for recruitment

HR professionals spend countless hours reviewing resumes in order to identify suitable candidates. NLP can make this process much more efficient by taking over the screening process and analyzing resumes for certain keywords. 

For example, you might set up an NLP system to flag any resume that uses the word “Python” or “leadership” for a human to review later on.

This can increase the likelihood of finding strong candidates, helping an organization fill open positions more quickly and with better talent. What’s more, it can also free up HR professionals’ time to focus on tasks that require more strategic thinking.

Conclusion

The idea that data has important insights to offer companies has been widely accepted, leading businesses to invest in various business intelligence technologies in order to improve their processes and offerings. 

But if your organization is only mining numerical data, you’re missing out on a wealth of valuable information to be found in unstructured human language-based data. 

Natural language processing is a powerful technology allowing text and words to be analyzed as efficiently as numbers can. By learning about and investing in NLP, you’ll be able to achieve a number of desirable outcomes, including streamlining processes, improving brand reputation and loyalty, and ultimately boosting revenue.

The next step would be taking these actionable insights and using them to further drive CX with e-commerce personalization.

 

How Brand Equity Can Positively Impact Your Business and Drive Growth

Brand equity is the ability to be recognized and acknowledged as more than simply another face in the crowd. Some brands have it, and even fewer know how to build it. With time and effort, you can learn how to become a master of brand equity, similar to giants like Apple & Microsoft. Your Journey Starts Here.

Brand equity is a great tool to have in today’s ever-changing competitive markets. 

The main benefit of having strong brand equity is that consumers will continue considering your products even when the cost is high. 

Consumers perceive them as having innate value or quality solely because they associate it with your brand.

Being the top brand whenever consumers think of your market sector is the ideal position, but it’s not quite that straightforward. 

I’m sure you’ve heard of the Pepsi vs. Coca-Cola, Apple vs. Microsoft feuds, etc. No one side can claim to truly be at the top of the market, despite all having strong brand equity.

Still, it’s a great position to be in. 

In this guide, we’ll take you through the steps of creating strong brand equity, allowing you to dominate the conversation. 

Let’s begin with the basics.

What is brand equity?

The definition of brand equity is a brand’s perceived value according to consumers. It can also be defined as the level of positive feelings that consumers have about a brand when compared to others in the same market space.

For example, if you order a rum and coke at a bar, you might be asked if Pepsi is okay. Some would answer yes, some no — that’s brand equity. If you buy a new gaming console and are dead set on having a PlayStation? You guessed it, that’s brand equity once again.

Some brands even dominate the market to the point where their name becomes the commonly used word for the item they produce. 

Coca-Cola and Sellotape, for example, have become synonymous with their markets, despite being only one among dozens of brands. That’s strong brand equity at work.

If you have strong brand equity, you have a dedicated customer base and the option to charge premium prices. 

When launching a new product, you’re guaranteed to get customers’ interest no matter what it is. 

That said, you can’t coast by on brand equity alone. You must ensure your products are still top-quality and are within the market’s expectations. Microsoft learned that the hard way with Windows Vista and even Sony with the $600 PlayStation 3.

Keller’s brand equity model (aka brand equity pyramid model)

It’s worth mentioning the Keller Brand Equity model here. We won’t cover it in too much detail as that would be an article in and of itself, but let’s go over it to give you a general idea.

Keller’s brand equity pyramid model states that to gain strong brand equity, you need to shape the way your customers think and feel about you. 

This starts at the base level with establishing your brand identity, then works its way up the pyramid by asking questions about what your brand might want to achieve.

It’s a step-by-step process that makes thinking about how you plan to position yourself and what feelings you want to evoke in your customers. 

Each stage contains crucial components that evoke brand loyalty, so be sure to give it a look if you want to build your brand up to the next level.

The impact of brand equity on customer interactions

Now that you know what brand equity is, you might be asking yourself – “is it worth it?”

It’s true that building brand equity is a long and difficult process, but the results are well worth it. 

Let’s take a look at some of the most tangible benefits, ones that you can point to when an investor asks why you’re putting so much effort into building your brand’s equity.

Customer spending

Brand equity impacts customer spending in two main ways. 

First of all, if you have a high brand equity you can charge more for a product than you otherwise might. In fact, it’s often expected of you to do that. So much so consumers will become suspicious of a product line if you don’t. 

When was the last time you saw a new iPhone going for less than $1,000? It would seem suspicious if it did, right? That’s Apple’s brand equity at work.

The second way in which customer spending is impacted is in making decisions about what to buy, especially in cases where a customer has little knowledge of the products in that market sector.

When a not technologically aligned parent decides to buy their child a simple phone for calls and texts, they’re left to rely on what little they know about a brand’s reputation.

What do they pick? An obscure and niche phone with specific uses? Or a well-known brand such as Apple or Samsung that they’ve probably heard of in passing? Probably the latter, right?

That’s brand equity in action. 

Customer loyalty & advocacy

I’m sure you’ve come across a friend or acquaintance who buys only from a specific brand and won’t accept replacements. I mean, what other laptop could replace my trusty Macbook?

I’ve grown to love it and how it functions so much, that buying another Macbook when it’s time to replace it is a no-brainer. And there are millions like me.

That’s the epitome of customer loyalty, which is different from customer retention (coming up in a few paragraphs).

Customer advocacy is when that loyalty is taken one step further. 

In essence, the customer becomes someone who will promote your brand to their friends and acquaintances, sometimes to the point of convincing them to switch brands.

Brand equity is of great help here. Not only do customers have a much easier time advocating for a brand that is well known, but the actual process of loyalty can be sped up tremendously.

Customer loyalty relies on great experiences, that’s true, but the opinions of others also matter. A HubSpot study on the topic found that 81% of consumers would rely on referrals from friends and family to choose & try a brand over an advertisement. This means that you’ll likely need a recommendation simply to get on the customer loyalty ladder in the first place!

Having strong brand equity means that people are more open to trusting you from the get-go, which makes climbing that ladder from customer to loyal customer to brand advocate that much quicker.

Customer retention

Your customer retention rates are one of the key metrics that help your business keep going. After all, if your customers leave unsatisfied and don’t return it’ll hurt your performance in the long run. A mere 5% increase in your retention rates can bring up to a 25% increase in profits!

Your churn rate, or the rate at which you lose customers over time, is another measure that’s similar to customer retention, just in the opposite direction.

It’s calculated by taking the number of customers who stopped interacting with you over a set period of time and dividing it by the number of customers you had at the start of the time period, then converting it into a percentage.

If your churn rate is high, your customer retention rate is low. Churn is often a more useful metric to look at than retention since it’s more directly comparable over different periods of time.

So, what does brand equity have to do with customer retention? After all, retention rates are solely about customer experience, right? Well, not entirely.

Research has shown that customers care about more than simply their experiences with you, with 80% being willing to change brands based on “a company’s social responsibility, inclusiveness, and/or environmental impact.” How does news on these topics spread? Via brand equity of course.

An apt metaphor to describe this would be meeting someone for the first time. Consider what would happen in the following circumstances.

You meet someone who is clearly in a bad mood, is rude to you, and snaps over minor things. You’d feel insulted, maybe even a little scared. You mark this person in your brain as bad news, and won’t want to deal with them again.

You then tell people that you know about this encounter, and how you felt. They have met this person before and reassure you that they aren’t normally like this, that it must have been a bad day or something similar. 

From this, you decide to revise your opinion, and the next interaction you have with them is great! Clearly, it was just an off day and they’re not normally like this. 

Having strong brand equity keeps customers coming back to you, even when they’ve had one bad experience. 

It’s a sense of trust that the consumer population as a whole has with you, which means that individuals are willing to give you another shot even when they didn’t like what you had to offer the first time around. 

Brand equity’s impact on your internal workings

Brand equity doesn’t just impact your dealings with customers, rather it shapes the very way your business will operate. 

There are plenty of strategies and tactics that big brands with strong brand equity can use that smaller, less well-known ones cannot. 

One example that springs to mind is the TV show Rick and Morty, which premiered its third season completely unannounced back in 2017. 

Any other television show would spend time hyping up a new release, using advertisements, press releases, and other means to keep the buzz going. 

Rick and Morty’s strong brand equity meant that it didn’t need to do that in order to keep viewers engaged.

There are more internal benefits to having strong brand equity than pickles and portals. Here are a few.

Stock prices

Stock prices are a great indicator of how your business is doing. Of course, this is only applicable if you actually have them up for sale, but let’s go over them briefly anyway. If this isn’t relevant to you, feel free to skip to the next section.

Strong brand equity will increase your stock prices, as it brings with it the expectation that the brand will continue to perform well. This in turn can also increase your brand equity in a feedback loop, though there is a limit to it.

So, why are stock prices important? Well, they’re an indicator of how well your brand is doing in its market, as well as a status symbol that can open doors to you that would otherwise be closed.

Higher stock prices are also attractive to investors who will continue to put funding into your brand if they think it’s going to give them a good return on investment.

Easy expansion of product lines

Creating new product lines is never easy, however with brand equity you can make the process a bit smoother.

Imagine a completely unknown business releasing a new line of soda drinks. They’re unusual flavors that haven’t really been tried before, and overall the public seems uncertain. Would you buy that drink, or would you avoid it for your regular soda?

Now, let’s flip the circumstances. Let’s say that Coca-Cola releases lots of new and unusual flavors. You know the brand, and know what they usually make is considered good quality, so you’re more likely than not to try it out at least once.

There is actually a great real-world example of this with Walkers, the UK-based potato chip company that regularly comes out with absurd flavors such as Breakfast, Fish & Chips, and even Squirrel! That’s not a joke, they actually did this.

Thanks to their strong brand equity, Walkers have been able to turn their experimental product lines into a game of sorts, with the most popular limited-time flavor being kept and turned into a regular product. 

Not only did the public do their research for them, but they actively engaged with their product testing and expansion. 

Imagine a no-name brand releasing these flavors, they’d likely be considered a joke. That’s what brand equity is truly capable of doing! 

Greater influence on the market as a whole

Strong brand names bring with them a sense of dominance. 

With strong brand equity, you’ll be able to negotiate with others from a position of power rather than equal footing or from a position of weakness.

With this position at the negotiating table comes opportunity. Partnerships, sponsorship deals, and collaborations, all these are possible only if you have a strong bargaining position. 

You also open yourself up to greater investment potential and maybe even get better deals from your suppliers once you’ve made a name for yourself.

Five ways of measuring brand equity

Alas, measuring brand equity isn’t straightforward. There are many factors to consider, and which one you put weight on will depend on your business model, industry, etc. 

Further, brand equity isn’t something you can measure in cold numbers. Still, there are a few tried and tested brand equity analytics you can use. We’ve laid out five of them below for your consideration.

Competitive analysis

Competitive metrics set you up against your competitors and see how you’re doing compared to them. 

It’s a more aggressive form of analysis that takes their marketing campaigns and yours, sees their results, and tells you how well you’re doing in comparison. If your competitors are lagging, that means you’re leading, and vice-versa.

Other factors you can look at to compare brands include relative customer sentiment, acquisition rates, social media engagement, etc. 

Remember though, just because your competitors are below now doesn’t mean you can relax. They’ll be looking for ways to improve just as you are, and if you stop to watch, you’ll be left behind!

Financial data

Another metric you can use to measure brand equity is financial data. 

Market share, profits, revenues, prices – these all tie into how well your brand is doing, since more brand equity correlates with more customers. Compare these to those of previous years or quarters, and you’ll be able to measure brand equity data over time.

Customer lifetime value is another strong indicator. 

Essentially it’s the value that a customer brings to you during the entirety of their total interactions with you. 

CLV = Average purchase price Average purchase rate Average customer lifetime

Strong brand equity correlates to higher CLV since loyal customers will bring in more revenue for you overall. Conversely, if you need to keep re-attracting customers, it might end up lowering their overall value to you since acquiring a customer is more costly than keeping a current one.

Also worth mentioning is the cost of acquiring new customers, which is a huge indicator of brand equity.

If said cost is high, it means that it takes a lot of incentive for a consumer to switch from a competing brand to yours, meaning your brand equity is low, and you need to work on your image.

Brand awareness

Brand awareness is another abstract quality that’s hard to measure, but nevertheless, it’s very valuable when you’re looking at your brand equity. 

To put it simply, if consumers don’t know about you, then they won’t buy from you. Further, if they know of you only vaguely, you won’t be their first thought when looking for a product.

Having high brand awareness means that you’re synonymous with the market you’re in – like the examples of Coca-Cola and Sellotape mentioned earlier. 

Being so well known comes with certain risks to your brand, as you lose copyright on any name that becomes the commonly used term for an item, but it’s a definite sign that you’re well up there in people’s minds. 

Coca-Cola managed to retain its trademark since the commonly used term is the nickname Coke. Sellotape, However, lost theirs when the term was deemed genericized enough.

Ways you can measure brand awareness include:

  • Surveys.
  • Store traffic.
  • Search volume.
  • Google search rankings.

These aren’t the end all be all, but they’re a good start. You can also look to social media for hints, but this information will be highly polarized due to the nature of such spaces. 

After all, when would you be more likely to post on social media? After a routine, bog-standard experience, or one that was absolutely awful? 

Customer sentiment

Customer sentiment is about feelings, specifically customers’ feelings towards a particular product or brand, depending how you measure it. 

Customer sentiment is a measure of how strong the emotions associated with your brand are, and how positive or negative they are. 

It’s especially important in today’s markets, as 86% of customers are willing to spend more after a positive experience with a brand.

Generally, customer sentiment is generated by surveys or similar methods, asking customers to rank their experiences based on how they felt about their interactions with you. 

However, it can also be found by scraping review data with sentiment analysis or analyzing social media chatter. 

It’s not straightforward at all to measure customer sentiment, and you may need to use specialized platform like Sentimate to analyze the data for you.

Brand audits

Something to consider when you’re analyzing your brand’s equity is what’s the total value of the brand itself, or what it contributes to the business simply by existing. 

There are a myriad of factors you can measure when doing this, but depending on who you are and what you do some will be more important than others.

In general, things to consider when auditing your brand are:

  • The cost to build the brand. How much money did you pump into advertising, trademarks, etc.?
  • The market value of the brand, or how much value it brings to stamp it on a product. Can you charge more for a branded product compared to a generic equivalent?
  • The income value of the brand, or how much money it brings in by making customers aware of your products. Can you launch a new product and expect high sales, or would you need to put funds into advertisement?

How to build & develop brand equity (with examples)

Brand equity develops in two distinct ways. 

Firstly, there’s the way in which awareness about a particular brand can spread over time from person to person naturally. This is often overlooked as a method of building brand equity as it is a slow process but nevertheless is important.

The second way is to build it yourself, taking action to increase your brand’s visibility, reputation, and relationships with consumers. 

We’ve outlined below the processes by which these two methods take place, as well as how you might go about beginning the latter.

How brand equity develops organically

Brand equity is something you’d ideally want to craft, however, it’s also something that can develop naturally over time. 

Back in the 1950s, for example, they didn’t have the knowledge we do on how brands can build equity for themselves, yet Ford was still considered a top-tier manufacturer of cars. 

This happened because information can spread organically from person to person by word of mouth, which increases brand equity without any input from the brand itself. 

Let’s take a look at the process by which this happens.

Awareness

In the first stage, a consumer becomes aware of your brand’s existence. This can be via spotting products on shelves, seeing advertisements, or simply by word of mouth.

They will have no immediate opinion on them beyond what others might have told them and their immediate gut response to anything of your brand’s image they’ve seen.

At this stage, it’s not likely that a person will buy from you, but a small number of them might do so. If they do, they skip the next step and go straight to the third one.

Recognition

Next, the person in question will come across your brand again. This time they’ll recognize it, and it won’t be completely unknown to them. 

Their prior experience with your brand will add to the current one, forming an opinion. 

This is where good advertisement comes into play, as many potential customers simply gloss over a brand at this stage if it doesn’t catch their eye, forget about it, and do not progress further along in the process.

Trial

In the third step of the process, a consumer will feel comfortable enough with your brand to test one of your products. This might come after coming into contact with your brand just a few times, or it may take longer.

The important part of this step is that the person takes the leap from consumer to customer. They’ve invested money into you, and their opinions will be highly polarized by their experiences with your product or service. 

If the customer likes what you have to offer, it’s likely that they’ll come back. If they don’t, they won’t, and might even badmouth you. This fact is why businesses will often advertise their generic products more, leaving the more niche ones aside as fewer customers would prefer those as their first experience with the brand.

Preference

Next, a customer who has had good experiences with your brand will begin to prefer you to others in the market. This step absolutely requires that you get the previous one right, with most potential advocates straying from the track at this point. 

It’s not enough to simply be good, you see, you have to be better than their previous brand in order to convince them to prefer you. It’s been shown time and again that humans are creatures of habit, and won’t change their habits unless given an incentive to.

In this case, that incentive is a better experience than your competitors provide.

Loyalty

When a customer has had repeated good experiences with a brand, they will not only prefer it but begin to recommend it to others. 

After all, wouldn’t you want your friends to have a good time just like you did?

It’s at this stage that a customer can be considered an advocate for your brand. They will spread information on you to another person, who will then begin this whole process all over again as they’ve just become aware of it.

Advocates don’t just help spread awareness either, their efforts can be seen at every step of the brand equity process. 

  • If you’re aware of a brand but haven’t yet tried it out, someone recommending them to you might convince you to give them a go.
  • If you’ve tried out a brand, but haven’t committed to them, the opinions of others might help sway you.
  • If you’ve tried out a brand, and had a single bad experience, hearing about the good experiences of others might convince you to give them another try.
  • If you have a preference for a brand but aren’t comfortable talking about them to others, seeing another person do so might put you at ease.

Keep in mind, however, that not everybody finishes these steps. Some may simply prefer not to air their opinions so openly, others might simply be stubbornly stuck to their current brands. That’s okay though, not everyone needs to be an advocate in order to spread brand equity!

Building brand equity yourself

Brand equity spreads organically, though this is a slow process. In order to speed things up, there are several things that you can do in order to increase your brand equity artificially.

These factors really dive into the why and how of your brand. Consumers want brands that stand for something, that have a purpose and a meaning behind them. 

You need to have more tangible business goals than simply “be successful and make money”, and they need to be ones that consumers can relate to in order to truly create brand equity.

The sections below aren’t steps per say, but rather overarching guidelines that you should always keep in mind when attempting to build your brand equity. There’s no point at which you can say you’re finished, you should instead be constantly analyzing your brand and the world around it.

Understanding your brand’s drive

The purpose of your brand needs to be clear in order to build strong brand equity. If you take a look at the most prominent brands today, you’ll find that they put their purpose and drive at the forefront of their communications.

That’s not to say that they all have the same messages or goals. Each brand has its own unique approach, meaning you can’t simply copy someone else’s drive if you want to set yourself up as unique.

So, what kind of messages are there? Let’s take a look at two prominent examples in the tech industry – Apple and Microsoft.

Apple

Apple’s stated purpose is to stretch the limits of technology, to create things that no one else can. To that end, they portray themselves as providers of future technology.

Apple’s advertising tends to focus on the brand itself, more than the products, which has allowed them to break away from their initial focus on computers and into phones, tablets, and even TVs.

Overall, Apple’s strategy has been to present itself via dazzling and simplified displays that cling to people’s minds. It’s certainly worked, with their advertisements being some of the most memorable and creative in recent years.

Microsoft

In contrast to Apple, Microsoft portrays itself as reliable, down-to-earth, and hard-working. In other words, similar to your average working Joe. Instead of being a futuristic, out-of-this-world brand that dazzles you, they stick to the practical aspects.

Microsoft positions itself as the good old reliable company that will never let you down, one that keeps working people in mind. 

While certainly less exciting than Apple’s dazzling displays there’s no denying that the straightforward, practical-centered message resonates with a lot of consumers worldwide, resulting in Microsoft’s systems being the most used by far.

Of course, a brand’s drive can change over time.  Markets change, technology evolves, and the needs and desires of consumers change too. A business that aims to provide dial-up internet service would find it extremely difficult to attract customers today, for instance, despite it being a fairly attractive, low-cost option just 20 years ago.

Developing your brand’s message

When you’re creating messages that consumers will encounter, it’s important to make sure that they’ll find them appealing and interesting in order to further engage with you.

In other words, it’s not just what you say, but how you say it too.

The key element of your brand’s message is taking your drive and translating it into real-world problems that consumers face. Specifics and details are extremely important, as consumers are put off by vague wording and ill-defined tones.

So, how do you find out what consumers would relate to? In one word, data.

  • Consumer opinion surveys can tell you directly what worries them.
  • Search traffic is a great indicator of what topics are growing in importance.
  • Social media is a goldmine of opinion data and is searchable and segmentable.
  • Reviews and ratings of similar products or services to yours can give insight into consumer desires.

One thing to keep in mind is that deciding your message isn’t something that you do once and then stick to. As times change, you need to change too, and altering your message in order ot appeal to consumers more is standard practise for most brands.

Driving awareness of your brand

Being aware of a band means more than acknowledging its existence. You want customers to understand both what you stand for and how you plan to uphold your values.

Awareness comes with long-term strategies, and taking actions that align with your values. It’s a trust factor, one which will only come after you’ve demonstrated your commitment to upholding the values you’ve stated.

The most important thing you can do with your awareness strategies is to be consistent. Consumers connect the most with brands that they can form emotional bonds with, which onloy happens if that brand is consistent in its ways. You’ll get more out of long-term, loyal customers than you ever would by simply partaking in one-and-done sales.

In short, focus on the broader future of your brand instead of simply the next transaction. While you might profit in the short term, you’ll lose out in the long run.

Maintaining consistency & transparency

Once you’ve established your brand, don’t change it unless you have to.

This might seem completely opposed to everything we’ve spoken about in the previous few sections but bear with us here.

When we say keep your brand the same, what we mean is the personality and tone behind your brand needs to remain consistent in order for customers to continue to relate to you.

While there have been a few instances of brands radically altering their image in order to refresh themselves – see Savage Wendys – it’s generally better to maintain your image.

If you do pivot, make sure to stay consistent. Wendy’s has been roasting ordinary people and antagonizing their competition on Twitter for over half a decade now, and has become something of a sensation.

The customers that you retain tend to do so because they relate to you and your brand. If you wipe the slate clean, you’ll have to re-acquire loyalty from them all over again.

Sometimes, newer isn’t always better. Then again, that’s up to you to decide.

Customer experience

Customers are at the heart of brand equity. News can travel faster than ever in the age of the internet, and bad news always seems to spread the fastest.

The solution? Simply providing a good customer experience.

Brands aren’t defined just by what they do anymore, they’re also known for how they do it. Unless being rude to your customers is part of your appeal, and yes, there are actually businesses that do this, you need to put great customer experience at the heart of your brand.

Social media is a great place to let customers air their praises and grievances to you. By taking note of the former you can continue to provide great experiences in the future, and by responding to the latter you’ll be potentially turning a negative into a positive. Almost all brands, even smaller, local ones, have some kind of social media presence.

An often overlooked way to gain insight into what kind of experience your customers want with you is simply to ask them. While it’s not always possible to get real-time feedback, asking your customers how you did at the end of each interaction can get you detailed information on how your strategies are working.

At the end of the day, the customer is king – at least when it comes to brand equity, anyway.

Real-life examples of building brand equity

All this talk of brand equity sounds very impressive, but you might be wondering – if it’s all hypothetical, nothing guaranteed, what’s the point of it? 

Well, we’ve gathered below some real-life examples of how brand equity was built, as well as the lessons you can learn from them.

Maggi

You might know Maggi as a provider of cheap, filling instant noodle snacks. What you might not know is that they were banned in India in 2015, after regulators determined that their products weren’t as free of MSG as they claimed, and even contained lead!

The validity of these tests was later called into question, but you’d expect there to be some damage to their reputation … right?

Despite the fact that these noodles were banned in the entire country of India for almost six months, and that production had been halted during this time, there was still an enormous demand from the Indian population for their one-pot snacks.

So, why is this?

Well, Maggi’s success was in adapting to the culture present in India. In quite a few nations, offering noodles as an alternative to rice would be seen as sensible, however in India, the idea of “rice for dinner” is so ingrained (no pun intended) that they needed to try a different strategy.

Instead, they advertised their noodles as an afternoon snack, something that could be made and eaten quickly by those in a rush – for instance, parents who needed to feed their children quickly after school.

In essence, Maggi offered itself as an “in-between” option and did so with great success. The convenience of their products meant that even after a scandal that halted sales for six months, many households still returned to consuming them almost immediately.

The lesson here? Adapt yourself to the demands of the market you find yourself in.

Netflix

Netflix is a huge success story when it comes to brand equity. Once they were nothing but another video rental company, now they’re synonymous with online streaming services. 

They’ve even entered our casual vocabulary as a verb … to Netflix and chill. 😉

Netflix was able to build its brand equity by being one of the first organizations out there to expand into what it’s now known for – streaming services.

In fact, I’d bet that a few of you reading this don’t even know that it did anything else before streaming.

Netflix was in the right place at the right time to begin the streaming revolution, launching its platform in 2008. It may not have been the first streaming service, but it was definitely the first major one.

Why was this the case? Well, they were already established as a video rental company at the time. 

With the rise of the internet, Netflix saw that they had an opportunity to expand their services. Eventually, as their streaming service gained momentum, they turned it into their primary source of revenue.

Today, Netflix no longer offers video & DVD rentals.

The lesson here? Adapt your brand’s strategy and identity to changing times.

Conclusion

Hopefully, after reading this guide you’ll know a little more about brand equity – what it is, how it’s grown, and how it’s maintained.

Brand equity requires knowing your brand, and knowing what your brand’s greater purpose in the world is. That’s a big question to ask, and a lot of brands can’t even boast of having one.

By having a purpose, a message, and the means to spread awareness of these, you can propel your brand to great heights. People naturally seek purpose in life and align themselves with those brands that hold values they can understand and empathize with. 

It’s not entirely out there to say that these purposes sometimes matter more to them than the products & services that these brands provide. 

Take a deep breath, and ask yourself – what is our brand’s purpose? What can we do to make sure this purpose is fulfilled? Do that, and you’re on the right track to having brand equity for yourself.

How Convergence Marketing Empowers Your Brand and Customers

Today’s world is all about data, and bringing your data together is the heart of convergence marketing. When every department can access it, your customers stand to win through personalized and improved experiences. Let’s dive in to understand how convergence marketing benefits everyone and how to apply it successfully.

 

Traditionally, a business’s marketing, communications, and IT divisions are kept separate. These sections run independently of one another, interacting only when necessary. 

This allows businesses to operate smoothly without having the burden of double and triple-check everything.

Customer reviews

It’s a good approach, born from times when most management strategies were being developed. Times when keeping everyone up to speed meant sending paperwork back and forth between departments. It’s a lot of hassle, and efficiency dictated people should know only what’s needed for them to perform their jobs.

But we live in different times.

In today’s world, with technology allowing for instant communication and data sharing, this approach might seem outdated. Siloing your departments might be what’s always been done, but that doesn’t mean it’s the only way to go. That’s where a new approach comes in, called convergence marketing.

Keep reading to discover what potential it holds for your customers and company.

What does convergence marketing mean?

Convergence marketing is more of a philosophy than a strict step-by-step approach. In essence, it’s the art of merging your marketing, information, and design divisions in order to allow a unified message across all forms of marketing media you use.

The main idea of this approach is to place the customer at the center of all forms of communication, seeking to ensure that all messages they receive present a single, unified front. 

This reduces the number of mixed messages the customer receives, allowing for greater brand recognition and trust to flourish.

Convergence marketing generally applies the most to digital or digital-supported forms of marketing. That’s because digital information can flow freely and seamlessly, as it’s retrieved from a database within milliseconds. 

As such, attempting to converge marketing strategies that are mostly offline will be very difficult.

Convergence marketing vs. integrated marketing

A similar yet different term is integrated marketing. 

Integrated marketing is all about coordinating marketing messages across different communication channels to increase brand awareness.

While this might seem identical to convergence marketing, this approach only considers the marketing department, ignoring all other aspects of the brand that might serve as touchpoints for customer communication. 

It shares the same idea as convergence marketing but applies it on a smaller, more isolated scale. That being said, integrated marketing often happens naturally when you do convergence marketing, as you’ll likely factor in all communication channels.

Convergence marketing vs integrated marketing

What are the advantages of convergence marketing?

Now you may be thinking, this sounds like a lot of work, and that’s because it is. 

Bringing separate departments of a business together is never easy, doubly so if you want them to be able to communicate in real-time. 

If it’s that difficult to employ convergence marketing (which means it’s likely to cost a decent sum of money), why do it? 

The benefits of convergence marketing tend to outweigh the costs if done correctly, as presenting a unified message on all fronts has numerous benefits. Let’s go over the most immediate ones.

Customer empowerment

By putting the customer at the center of your marketing strategy, you’ll be empowering them to act and provide feedback, giving them a voice in future decisions.

Any customer-centric marketing strategy takes in feedback, but where convergence marketing empowers customers is the linking of marketing and communications channels. Each piece of information collected by the communications team will be passed on to the marketing team and vice-versa.

Two way communication

This has the effect of not only increasing the customers’ voice within the organization as a whole, which allows you to tailor your marketing campaigns appropriately but increasing brand recognition overall.

While it might seem as though useful customer data is difficult to get, it’s been proven that two-thirds of consumers will willingly share their data with you if they think it will improve their overall experience. 

They’re also willing to let you use first-party tracking cookies and other means of observing their online behavior if they think they’ll get something out of it.

In other words, convergence marketing is like symbiosis. Each party gives and takes, and both benefit overall.

Improved customer experience

Convergence marketing necessitates a shared database of information to which all sections of the business have access. 

By creating this cross-transfer of information, various departments of your business will have access to all data collected on customers, enabling them to see previously documented interactions, and provide a better overall customer experience.

A Google report showed that up to 85% of digital customer journeys use more than one form of interaction with you. That’s a lot of data that you might miss if you’re relying only on information from one IP address.

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With all available information on a particular customer, you will be able to learn what experiences they’ve had with you in the past, what approaches they respond best to, and even what might cause them to walk away satisfied. 

Remember, engaging your customers is the best way to make sure they walk away happy! 

Integrated communication between departments

Convergence marketing requires departments to collaborate, which means you need to have a robust communications system between them. Integrated communication isn’t so much an unintended benefit as a necessary part of convergence marketing. 

Once the channels of communication are open, they can be used for more than they were designed for. Departments can share ideas and get feedback on them, ask for help from one another, etc. 

Another factor is post-purchase customer service. Almost 60% of consumers would use social media to get this, but without information from the sales team on what’s been purchased, whoever is running the social media won’t be able to do their job.

Collaborations are also an option. With the traditional siloed form of organization, the different departments wouldn’t know about each other’s plans and, therefore, wouldn’t be able to offer assistance or request adjustments.

One of the greatest examples of inter-departmental collaboration in modern times can be found in Apple’s Transparency Report, designed to keep track of both government and private party data requests to Apple.

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Apple’s aim here was to keep their customers reassured that their data was safe and wouldn’t be sold to third parties. 

In order to achieve this massive task, Apple had to keep a record of any and all requests for data, the reason for such, and whether or not the request was granted. 

This quite obviously involved their communications department. The collaboration also involved their legal team, who determined whether or not to release data in the face of law enforcement requests, and their information security team, who decided how to release the data.

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They pulled all information together and released it in the form of their Transparency Report, released annually. In the above table, taken from their 2021 report, you can see that over 70% of private-party data requests were rejected. Apple is practicing what they preach, being open and honest about its responses to data requests when needed.

Apple scored a major PR win with customers who want to keep track of their data and be reassured that Apple would only release it as a last resort. It’s arguably their greatest collaboration and one that perfectly exemplifies convergence marketing.

Instant access to information

Converging your departments necessitates placing information within a shared database. It also means that your data will take a standardized form and that anyone within your organization who has access can use it.

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Imagine you’re a member of the marketing team who’s had an idea about using some of the latest designs in your new marketing campaigns. Without a unified database, you’d have to:

  • Request the designs from the design team.
  • Wait for a member of the design team to read your message.
  • Wait for the design manager to okay sending the designs over.
  • Wait for the design team to actually send the designs over.

Each of the above steps takes time, whereas with a unified database, you can simply hop into the relevant folder and pull the designs out for use. 

Where and how can you apply convergence marketing in your business?

Convergence marketing isn’t something that you can apply overnight. It’s a slow and steady process that brings different sections of your business together, requiring careful preparation. 

The simplest, and altogether the most sensible approach, is to alter each of your departments’ approaches little by little until they’re aligned with each other. 

Once the processes and guidelines that each part of your business uses are similar, you can begin the sync, allowing them to work in harmony.

Let’s go over what each department needs to do to get the convergence ball rolling.

Where and how can you apply convergence marketing in your business

Marketing department

Convergence marketing, as the name suggests, is focused on marketing. It should come as no surprise in that case that the marketing department will be at the center of your efforts to converge.

When implementing convergence marketing, the first step in the process is to begin documenting and recording your marketing efforts within a database. That is, if you have not already done so.

Marketing department

The next step is to take a look at the way you store information, including but not limited to:

  • Acronyms.
  • Filetypes.
  • Naming conventions.
  • Database layouts.
  • Access protocols.

These all need to be standardized into a form that the other departments involved in your efforts will be able to read and understand. 

Once information is standardized it can be read by anyone who knows the syntax used, which should be provided to all other teams involved. Other teams may not necessarily use the same software as the marketing team, so you’ll need to take this into account.

You might be asking yourself, why is data standardization important? Surely anyone who needs to use the data can simply convert it into a form they can read.

The answer is two-fold. 

Firstly, errors can crop up in translation. The data you end up with might not match the data you started out with, and it’s not feasible to manually check every piece that comes your way.

Secondly, your staff is only human. It’s inevitable that someone will forget to convert data, use the wrong conversion methods, etc. 

If you think this is overstating the matter, please remember that NASA lost an entire Mars probe in 1999 thanks to someone forgetting to convert from inches to centimeters. Hopefully, any mistakes that crop up in your departments won’t cost $125 million and involve crashing objects into planets.

While standardized information is vital for all departments involved in the convergence efforts, it’s especially important for the marketing department. 

And since marketing plays an integral part in your efforts, you should consider convergence within the department.

Internal convergence

Converging your marketing efforts can mean many things. Perhaps the most important aspect you should look at is converging your online and offline forms of marketing.

Due to their different philosophies, it’s common for businesses, especially larger ones, to silo these two forms of marketing into different teams so their operations flow smoothly.

Online marketing is a far more advanced approach, crunching big data from each particular consumer and personalizing ads and offerings based on behavior, interests, and more.

Offline marketing, on the other hand, needs to be far more general. It’s not that you can’t make offline forms of marketing more personalized; it’s that the amount of effort that it takes means it’s not always worth it.

In today’s world, attention spans are shorter than ever. It’s estimated that the average human’s attention span is just over 8 seconds, a drop of nearly 5 seconds from the year 2000. This puts the average human’s attention span at less than that of a goldfish!

This drop doesn’t come as a surprise, given how technology has sped up in the past 20+ years. With this information in mind, it’s more important than ever to grab consumers’ attention early on in your interactions. 

That doesn’t mean you should ditch offline marketing efforts. Some can work brilliantly. Take the billboard below as an example.

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It was created as part of a Minnesota anti-smoking campaign. 

It’s a simple design, with only the website link on the billboard itself, but the pole beneath dressed up as a cigarette makes sure that we know the purpose of the advert. 

The green color often associated with hospitals is the final nail in the board, subconsciously reminding the reader why they should consider getting in touch.

In short, the billboard has conveyed:

  • What service is offered.
  • How to best contact them.
  • Why you should do so.

Online marketing can learn a lot from offline forms. Digital designers may be tempted to make elaborate and attention-grabbing content, but paradoxically it’s best to keep things simple even when you have a theoretically unlimited amount of space.

No one wants to keep scrolling forever, after all. It’s estimated that the average website user stays on a webpage for only 50 seconds, and that’s with an engaged audience, so you want them to take in as much information as possible in that time.

This is where the convergence of online and offline marketing comes into play, with the two learning from one another and leaning on each other. In all forms of media, you have to present information in a very efficient way. It’s not enough to simply make a consumer aware of your product. You need to tell them what it is and why it’s the best option for them to purchase. 

The below images taken from IKEA’s website showcase how simple designs can convey a lot of information. 

This image displays a sense of aesthetics that would make the viewer see IKEA positively while not being too complex or distracting from the point.

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The second section, shown below, uses extremely simple outline images to get the point across, displaying all of IKEA’s services in a readable form.

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Simple, easy-to-read marketing.

Communications

Communications refer to the part of your business responsible for communicating with outside parties. That’s anything from customer service helplines to writing emails to your shareholders. 

In small businesses, this department might be merged with another or simply have its responsibilities spread across several other teams. Still, the principle behind convergence marketing extends whether you have a dedicated team or not.

Your communications department greatly benefits from convergence marketing, with the most obvious advantage being access to the other departments’ data.

With access to all the data your marketing department has collected on a particular customer, you’re better able to tailor your approach to them. This can extend to:

  • The channel of communications.
  • The tone used in communications.
  • The complexity of the language used.

You might think that that’s all there is to it, but there are other benefits as well. Not only can the information you get improve your communications department’s operations, but collaboration with your other departments can provide benefits that neither could produce alone.

Take this creative approach from Capital One as an example.

The company was on the ball with their Capital One Cafes, a re-imagined form of banking where their branches doubled as cafes with co-working spaces and workshops.

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Despite the fact that most banking is done online, there is still demand for in-person interaction when dealing with problems. Capital One saw this and decided to use its spaces as a means of connecting with the community better. 

This strategy was the brainchild of combined marketing and communications thinking. Not only is the cafe a great marketing stunt, but it’s also a relaxed setting that consumers can use to communicate with the business without fear.

Going up to a teller screen can be intimidating after all, and many consumers are put off by the formality of the whole process. By removing the physical barrier between the bank workers and the customers, a more welcoming environment is created.

It’s doubtful that either department would have been given the go-ahead without collaboration. Altering your entire business strategy is extremely costly and risky, but with multiple departments backing it, the alterations went ahead.

Management

Finally, let’s talk about the management side of things, specifically the upper management. While there isn’t much to say regarding implementation, it’s easy to see the benefits, especially in terms of decision-making and cohesiveness.

It’s often said that the upper management doesn’t know nearly as much about the goings-on below them as they should. This is mostly due to how difficult it is to pass information and manage it in a centralized and standardized manner. 

CEOs and COOs make the decisions, but how can they make them reliably when they aren’t getting the complete picture?

In the traditional approach, department directors report to their superiors, passing along different strategies, suggestions, and requests at once. Keeping track of all of that can prove difficult even for the most qualified managers.

By converging your marketing, there is a single, unified goal that the business wants to achieve. This means that anyone who makes these decisions can always fall back on that, rather than having to keep track of all the different strategies your business might be going after.

Convergence marketing is all about passing on information in a clear manner. Better information means better decisions, which make for better business strategies, and a more unified organization.

What tools can help enhance convergence marketing?

If you’ve read this far, you’re probably looking to apply convergence marketing to your organization. There are many ways and tools to go about it. So many that you may get overwhelmed at first.

To help make sense of all of this, we’ve prepared a list of the most useful tools and why they’re useful in tackling convergence marketing. 

This isn’t an exhaustive list. It has to be on the general side of things, as each industry and context requires a different approach. So, if you think you have a better option, we encourage you to go for it.

Social media

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Social media is a powerhouse of the current digital marketing age. It’s a tool that can create a lot of data for you to utilize, while also allowing for better interaction between your communications department and your customer base.

Social media communications is a tricky business, with even the most innocuous of comments being able to spark outrage or dissent among your viewers. By looping back real-time information into your marketing department, you will be able to mitigate any crises.

This is where social media monitoring comes in. Social media monitoring software can assist you in keeping track of your online statistics, flagging any urgent or suspicious data, and allowing you to give feedback and responses to questions rapidly.

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The software is fairly new but has already made great strides. Some countries have even used it to monitor the accuracy of news shared on social media sites, with the aim of keeping their population informed when electing their new leaders.

In short, social media can be used as both a form of marketing and a form of communication, sometimes simultaneously. 

The platform you use will depend on your market, target demographics, etc., but all share the advantage of global reach. Their downsides are also similar, with rapid responses and careful monitoring being crucial.

Mailshots

Mailshots, also called direct mail marketing, is the art of using mass production of a single advert to market to large numbers of consumers at once. Typically, the term has been used to refer to letters or leaflets you send through the post, but it is also applicable to email marketing.

The advantage of convergence marketing when using email mailshots is immense. 

You can combine clicks and conversion statistics, along with other forms of data you’ve collected on customers to further personalize communications. Something you wouldn’t see in a siloed system.

And it’s a big deal, as segmentation and personalization are by far the most effective email strategies.

Consider the following scenario – a customer is after a specific brand of eyeliner, so they send an email to a store, asking if they have it in stock.

If your departments are siloed, the marketing department won’t know about this instance, and future newsletters and promotions will be less relevant for that person.

With your marketing and communications departments converged, this information will be communicated between them, allowing for it to be used in future personalized marketing efforts. The customer gets more relevant content, and you get a happier customer. Everybody wins.

To sum it up, mailshots are all about information. The more relevant you can be, the greater their chance of paying off. Keeping the flow of information open between departments means everything can be considered, not just what the marketing department has immediate access to.

Apps

When you create an engaging app for your brand, customers are more likely to use it for browsing, purchasing, and interacting with your company. 

This gives you heaps of data about your customers in a simple and efficient manner. It’s especially true with apps as they’re usually linked to an individual account, leaving less margin for errors.

Another great thing about apps is they can be heavily personalized according to the data you just collected. Whether that’s to do with how the content in your app is laid out or specific times you’d like to use push notifications. There are even capabilities to change the design with AI-generated art, though these processes are still in the early stages.

All in all, apps are a sandbox for you to create your perfect customer contact point.

Cloud software databases

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Market Report

To move information between the different sections of your organization, you will need a database of some kind. In essence, each division needs to know what the others are doing and why they’re doing it. This prevents your sections from conflicting or producing mixed messages.

Cloud software is a particularly efficient method to use, with many tools to choose from. The main players are SalesForce, PipeDrive, and Zoho. Your choice will mainly depend on your organization’s:

  • Size.
  • Goals.
  • And ability to implement technology.

Let’s go through a list of the benefits that cloud software can provide and discuss why they’re superior to other options.

Scalability

If you’ve ever used a flash drive or similar device to store your files, you know that they can very quickly become full. Data takes up space, and the amount of data you collect won’t always fit into the storage space you’ve allocated.

If you’re using traditional data storage means, you’ll need to physically go out and obtain more storage space, install it, link it to your data collection software, etc.

All that takes time, time in which valuable data will be lost. Cloud-based services offer expansion as your organization’s data storage needs grow. Perhaps more importantly, you can also decrease the capacity when you see a drop in your needs.

Cost-effectiveness

Cloud software is a far more cost-effective solution than traditional forms of information storage. 

For one, you don’t have to store the data yourself in a physical location which would come with maintenance costs. You also don’t have to maintain and replace the storage drives every few years when the technology moves on, which is quite costly.

Another factor that bears mentioning is the time cost of duplicating files, emailing them to relevant people, and of those people downloading them. This might not seem like much, especially with smaller files, but when this process happens thousands of times a day, it starts to add up.

Easier collaboration

As mentioned before, the instant transfer of information between different people greatly benefits cloud software. However, the ability to collaborate goes further than that.

In traditional collaboration, one person might send a draft to a second, who suggests edits and sends it back. Then, if the first person doesn’t like some of those edits, they would suggest something else.

This takes time, causes great delays in projects, and is very inefficient overall. The key issue here is that each person cannot see what the other is doing until the edit is complete, and if they disapprove of it, that’s time and energy (and money) wasted!

With cloud software, the projects can be hosted online in a place that both participants in this hypothetical example can see. Each edit can be reacted to live as it is being done, saving time and effort in both parties’ cases. 

Enhanced data security

Physical means of data storage aren’t the most secure. Once a connection is made, it’s very easy for a hacker to steal data and very difficult for you to stop them without physically severing the link to your server.

Cloud computing offers a unique opportunity in the data security world. Since your providers will necessarily have great data security measures in place (that’s their entire point), your customers can rest safe and easy knowing that their data won’t be stolen.

Cloud software is necessarily shared over multiple parties, which needs to be transmitted in real-time. This makes it an ideal candidate for blockchain security measures, which are considered almost unbreakable. 

While data can be extracted from an external source, doing so requires the consent of all parties involved, so hackers would have to go the extra mile. Furthermore, a complete block in the chain cannot be altered, making most run-of-the-mill hacking methods ineffective.

Wrapping up

It’s not always easy to switch to new methods of thinking, but converged strategies are the future as customers are expecting a more personalized approach.

Convergence marketing ensures your customers will get it, as each department will be able to fetch, understand, and send data from across the company.

The next step would be to measure how customers feel about your new approach. Luckily, it’s something you can measure via advanced tools that provide sentiment analysis, providing valuable insights for your business. Read more about it here

 

5 Ways To Improve Ecommerce Customer Experience in a Post-COVID World

5 Ways to Improve Ecommerce Customer Experience in a Post-COVID World

The COVID-19 pandemic completely transformed the way our society works. Suddenly, almost overnight in some cases, people went from crowded trains and bumping elbows in stores to having to stay away from each other for their own safety.

And when people couldn’t get into physical stores, more and more turned into online shopping. This change has happened swiftly, and many retailers were caught off guard, scrambling to make the necessary adjustments, resulting in a mixed ecommerce customer experience when visitors attend their virtual shops.

This isn’t a passing trend, and shoppers are taking a liking to shopping online. Businesses have to up their game and find creative ways to improve their ecommerce customer experience if they want to generate new sales and retain existing customers.

Luckily, it’s a goal that can be achieved.

Read on to find out how to provide your customers with the best ecommerce customer experience possible.

But first things first.

What is the ecommerce customer experience?

As opposed to User Experience (UX), the Ecommerece Customer Experience (a.k.a ECX) focuses less on the technical and functional aspects of the experience and more so on the overall feeling.

It starts from the customer’s first touchpoint with your brand and accompanies them every step of the way – before they purchase anything, and some would say until the end of time.
In every one of these steps, thoughts and emotions arise. Together, they’ll dictate engagement, conversions, and retention. All of these tie into the broad term of ecommerce customer experience that shapes how customers interact with your brand.

It’s understandable why it’s such a big deal. And the data backs it up, with 73% of respondents mentioning customer experience as an essential factor in their purchasing decisions.
Yet businesses aren’t prioritizing it, as only 49% say companies provide a good customer experience.

There’s a clear gap here and a fantastic opportunity for you to differentiate your brand by providing an excellent ecommerce customer experience that will increase customer loyalty and generate new ones.

How COVID changed ecommerce

2020 marked a noticeable shift in many aspects. Ecommerce was no exception to the rule, with the impact of the pandemic being felt far and wide throughout the market.
Thanks to being based digitally, ecommerce was able to dodge most of the changes that crushed other forms of trade and, in fact, only increased in market share during this time period, with it hitting 30% of overall UK commerce during the lockdown periods.

When such a massive behavior change occurs over a very short time span, it means systems are being thrown off balance.
Let’s review how the digital market rearranged itself to better understand how to provide shoppers with a better ecommerece customer experience.

Increased demand

With consumers unable to enter their local brick-and-mortar stores, whether due to restrictions or simply not having the time, they tend to switch to online forms of purchase. This is especially true of the younger, more tech-savvy generations, though older consumers also got in on the action.

ecommerce data

In response to this, plenty of retailers upped their delivery game. Curbside pickups, increased number of delivery vehicles, and more flexible means of delivery were heavily emphasized, with ready-to-ship stock also favored.

Wider customer bases

As mentioned above, the number of those using e-commerce increased over the course of the pandemic and its subsequent restrictions. Something that also increased was the range of consumers using e-commerce.

It’s a common stereotype for those in the older generations to not know how to use new forms of technology. When a new form of technology is introduced, and you’ve grown up and lived without it, you can often carry on and get by just fine without ever learning to use it.

This isn’t the case in the middle of a global pandemic, especially one to which older people were considered more vulnerable. Whether it’s the elderly learning to use the internet or their children doing it on their behalf, the audience for online purchases definitely got wider as time went on.

ecommerce audience

The switch to pure ecommerce and the demand for interactivity

With the ratio of ecommerce to walk-in stores rising, many businesses found that it was actually more efficient and cost-effective to switch to a pure ecommerce approach than continue using brick-and-mortar stores.

Change is never easy, and though consumers weren’t likely to make the switch themselves simply due to habits, the pandemic was the perfect time to showcase the advantages of pure ecommerce.

The technology used in ecommerce also leaped. Virtual showcases, more detailed descriptions, and even interactive forms of media such as 3D models became widely used to improve the ecommerce customer experience.

Consumers like to try before they buy, a fact that has kept traditional retail stores afloat, but in the age where technology has become so advanced that you have ways of doing that from your living room, there’s very little need for them.

For example, Australian accessory company Bellroy leaves nothing to the imagination, showing potential customers what their wallets would look like.

 

ecommerce wallet

ecommerce wallet

Furniture companies employ 3D models that allow you to examine your new comfy chair from every angle to replicate the retail customer experience.

ecommerce furniture

With the shift to online forms of communication, the demand for quick answers and information has shot up.

If you have questions about a product or service, asking in-store has traditionally been the go-to method of obtaining information. With restrictions in place and limited numbers of stores allowing full face-to-face contact, those who ask these questions have had no choice but to turn to online methods of communication.

Fast responses and clarity are the main concerns. If communication is slow and confusing, customers will likely shop with another provider who will answer their questions if a clear and quick answer isn’t provided.

This leads me to my next point.

Willingness to switch brands

Customer loyalty declined during the pandemic, especially in pure ecommerce stores.

When you’re walking down the street or through a shopping center, it’s not easy to find the motivation to browse alternate stores when the one you usually go to is lacking.

You might settle for a different brand or a lower quality item instead of taking the time and effort to travel to another store. With ecommerce, that other store is merely a click away.
To keep potential customers in your virtual store, you must provide the best ecommerce customer experience possible.

Here are our top 5 ways to do that.

5 superb tactics to up your ecommerece customer experience game

Naturally, the shift in consumer behavior means you will have to switch approaches to running an ecommerce store if you want to satisfy them. This is especially true of customer experience since the lowered loyalty levels mean consumers will likely switch away from your business after having a single bad experience with you.

If you want to keep up with your CX game but are unsure where to start, don’t fear! We’ve analyzed five major changes that have seen success over the past few years and cataloged them below so you can understand what they are and how to start using them.

Building a community

You might think that building an online community is as simple as running social media pages for your brand, but it’s not entirely true. This view doesn’t take into account the nuances of what your audience wants and the values they hold.

Forming a community is less about your business and your products and more about how you shape these to meet the desires of the people you cater to – from Millennials and Gen Z all the way to baby boomers.

For example, the younger generations care deeply about sustainability, with more than 50% saying that sustainability is important when making purchase decisions.
These people have grown up seeing the effects of climate change and the impact of unsustainable business practices on the world around them. They are willing to pay a premium if it means purchasing from a sustainable source.

International shoe brand TOMS caters to this audience by putting sustainability and the community front and center on its website, with the help of informational videos and articles to educate shoppers.

ecommerce toms

Older consumers, on the other hand, have been shown to care more about things that affect their own health and comfort, including a focus on luxury items that emphasize relaxation and security above all else.

How to build your community

The first step is simple – you need to know your audience.

No matter how it is performed, all commerce is limited by what consumers are willing to pay for. This extends to your company, your values, and how the population sees them.

In business, there are no absolutes. You need to change your strategies, processes, and approaches when there is a shift in the priorities of the community you serve.

When building a community around a brand, the first area you look to is often more straightforward areas such as social media pages or forums, rather than the expensive and time-consuming process of overhauling your website. This will help you spread the word about who you are and what you do immediately and at a minimal cost.

A brand’s community is all about emotional context and familiarity. Consumers’ attention spans are shorter than ever, so try and keep your messaging short, simple, and easy to comprehend if you want to expand your community.

Those who have an emotional connection to your brand, and through that to each other, will reach out to you if you make it possible. These consumers are already willing to communicate with you and share their opinions and desires, you simply need to make it happen.

From there, regular engagement, affiliation programs, and creating community platforms where consumers can discuss your brand without your input are sensible next steps. Which of these is most effective and how you should approach them depends entirely on the individual brand in question.

Social media interactivity

ecommerce social

Using social media isn’t just a case of engaging with customers and giving out information upon request; there are actually many facets to it. Four of the main components that can be utilized are:

  • Social media listening: Using software to capture customer insights based on publicly shared information.
  • Social media marketing: Outreach and brand awareness, traditionally thought of as advertisement and spreading information.
  • Social media reputation management: Taking action on reviews or feedback left on social media, acknowledging customers’ difficulties and how you can solve them.
  • Social media engagement: Talking to your customers directly when they have questions, solving issues that they have in a publicly viewable way.

Each factor brings new information and new ways of improving ecommerce CX to the table.

Social media listening can grant you access to information from posts that both are and aren’t directed at you. In contrast, social media marketing allows you to present new information and opportunities to your consumer base.

Social media engagement allows you to directly connect with your customers in a publicly viewable and easy-to-see way, both forming an emotional connection with them and allowing others to directly witness solutions to possible problems that they can utilize themselves.

Social media reputation management consists of responding to reviews or feedback that isn’t directly visible to the average viewer unless they’re looking for it.

Interact with customers in both public and private depending on their preferences. This allows you to go into more detail and have fewer limits imposed by platforms.

Two good examples of social media reputation management in action are FAQs or customer questions on product pages within social media. Questions can be responded to either directly on the page or in a DM to the customer in question.

A good case for publicizing the answer would be to solve a similar issue for others. On the other hand, answering in private can help save face and avoid any potential embarrassment that might arise from certain questions.

While social media listening & marketing can be done formulaically and on a schedule, the other two facets require active monitoring as they’re reactive rather than proactive.

How to get started with social media interactivity

To begin, you need a social media page. Once that’s set up, you should assign duties to your CX team based on each of the four above categories of interaction.

An automated service can do the listening part of social media listening. Later on, it’s recommended that a team member will sift through and analyze the data for actionable insights.

Social media marketing can mostly be done routinely. That said, you should always strive to keep your content fresh and interesting. Using the same templates and information repeatedly will lead to consumers scrolling past you as their brain filters out your posts.

In addition, you need to consider each social media platform’s unique rules and limitations and the audience that frequents them. Tailor your posts to each one rather than simply copy-pasting.

Twitter, for instance, limits your text, so placing some of the information in image form. This will both make the post more eye-catching and circumvents the character limit. The end result is a post that will gain and hold readers’ attention.

Social media reputation management and social media engagement are both far more unpredictable. Consider assigning a dedicated night owl to manage these aspects. Social media runs 24/7 and won’t stop just because it’s after 8 PM or a weekend.

Another factor to keep in mind is speed. Like a series of dominoes, posts can come one after another, leaving your reputation in ruins. The same dedicated team can spot fresh posts mentioning your brand, respond promptly and avoid any potential fallout.

Personalizing the ecommerce customer experience

The idea of a personalized shopping experience is nothing new, it stretches back to the oldest forms of commerce on record. It’s the idea that what customers are exposed to should be relevant to them.

This isn’t just a theoretical idea. A vast majority of customers expect a personalized shopping experience. And when they don’t get it, they get frustrated. You can guess what will happen next.

How to get started with personalization

Personalization can happen in any form of communication. On your web pages, emails, SMS messages, and more. You just need a platform that can accomplish this magic and a wealth of data.

Here are some of my favorite ways to tackle personalization:

  • Localized content: language, interests, and region-specific information. Check out this example from Paul Valentine, as it recognizes the customer’s geo-location and sends them to the relevant region.
    ecommerce ringecommerce ringe
  • Recommended products: in side/banner adverts, suggested products, and email promotions. I’m sure most of you have received a “We thought you might also like” email filled with products that complement the one you just purchased.
  • Targeted discounts: relevant products in emails, pop-up promotions, and bundles.
  • Navigation adjustment/dynamic layouts: adjustment of website or app navigation functions and layouts based on the previous interactions a customer has had with you.

Dynamic supply chain planning

With the increase in online shopping, ecommerce demand and turnover have remained high even with COVID-19 restrictions being a thing of the past in most countries.

Those consumers who entered ecommerce during the pandemic largely did so as a replacement for in-store purchases. They demand instant processing and same-day dispatch where possible. They treat a website exactly like a brick-and-mortar store – a place to find answers and obtain products immediately.

This is complicated by the fact that the pandemic disrupted supply chains all over the world. Ships were stuck in port, flights were grounded, and vans were told not to start. While the gears of global supply have started turning again, various global factors have left it in less than optimal condition.

And this dramatically affects the ecommerce customer experience.

Fortunately, there are several factors you can plan for that allow you to make up for most bumps in the road when it comes to your supply chains.

The first step is to assume that there will be problems you cannot predict or fix yourself, as that’s true of any dynamic involving two or more parties. Once you’ve accepted that, you can begin looking at your supply chains and predicting what obstacles might crop up in your path, then start planning how to avoid them.

How to get started with supply chain alternatives

ecommerce dynamic

There are several things you can do to up your supply management game, all of which involve the use of technology to some extent.

Fear not, for during the course of 2020-2021, alterations were made to supply chain management (SCM) software, and most of the bumps have already been determined and accounted for by the experts.

  • Finding local alternatives to international materials/goods. With international trade being among the most disrupted, finding local alternatives to goods that you usually purchase from abroad is a must. This ensures that supply chain disruption is minimized and nets points with consumers who love to shop locally.
  • Factoring in scarcity. One of the main issues facing manufacturing in the current times is a shortage of rare materials and goods, either due to mines and plants operating at reduced capacity or supply chains having been diverted.
    In any case, if you rely on these components or goods as the main facet of your ecommerce business, you will need to adjust prices and margins to account for the increased cost of acquisition. In addition, you need to be prepared for the possibility that supplies will dry up further and stockpile to keep your operations moving while the supply chain issues resolve themselves.
    On the flip side, simply because shortages exist now does not mean they will continue to do so. The bullwhip effect, as it is called, is a well-known effect that causes supply shortages to be passed up the chain, overcompensating each step until an overabundance is created.
  • Using omnichannel for inventory management. Inventory management is a nightmare at the best of times, and when you’re dealing with ecommerce, where you might have multiple storage locations across different cities, it’s especially challenging.
    Omnichannel approaches combine all your information into one database, often using cloud software to instantly transfer information. With demand for instant answers and speedy deliveries at an all-time high, knowing precisely what you have access to and where it is located is crucial for an excellent ecommerce customer experience and success.
  • Accounting for delivery delays and transportation issues. There will always be delays and other transportation issues. That much is inevitable even if the times of lockdown seem to be behind us. While you can’t stop these from occurring, what you can do is account for them in your delivery estimates.
    Overestimating delivery times is often your best bet, especially in cases where the mode of transportation you use experiences regular delays. A customer who expects their order within fourteen days and receives it within seven is a happily surprised one, compared to the opposite scenario.
  • The uncertainty of demand. In the current market, it’s not always clear whether customers will continue their current spending habits or alter their behavior. The entire summer vacation of 2020 basically did not occur. It was a massive blow to retailers looking to capitalize on this regular, predictable demand increase for certain items. And with inflation rising, we may see purse strings tighten in the upcoming months.

In contrast to the advice given above, if demand is uncertain and you’re not sure if consumers will continue to purchase your products, do not stockpile. Some ecommerce stores have even switched to a model where they order goods from the manufacturer only after a customer has made an order. It may adversely affect the customer experience but will keep you in the black.

Informative & interactive product pages

When shopping online, consumers are unable to physically see products in person before purchasing.

Viewing a product remotely and fully analyzing its capabilities is an attractive proposition. It saves consumers time and effort while allowing them to view products from all over the country.

It’s long been believed by the general public that when you order online, buyers beware, but creating informative and interactive product pages puts this fear at ease.

How to get started with helpful pages

First of all, check what the platform you use offers. Some have strict limitations on page size and images, while others allow a more free hand.
Amazon, for instance, imposes a title limit of 250 characters and a description limit of 1,000 characters. In addition, only six photos are allowed in the main part of the listing for any individual product.

eBay imposes similar limits, though indirectly, as their pages will cut any description over 800 characters down to 250 characters on mobile devices.

Using your own website will avoid these limitations. But before you run off to the drawing board, consider if the value outweighs the costs and challenges, as creating a website that provides a great ecommerce customer experience can be tricky.

Ultimately, there is no clear line where it’s sensible to switch from a pre-existing platform to your own. It depends on your industry, reputation, and engagement, amongst many other factors.

Once you know your limits, work with them instead of against them. Aim to make your page as informative as possible within the text confines. This can include:

  • Hitting the right keywords to make sure you show up in searches (SEO).
  • Adding elaborate descriptions to give consumers accurate ideas of your products, dimensions, manufacturer, model numbers, etc.
  • Listing the parts included in your product. This is especially important if your product requires batteries or cables, etc.
  • Naming all the features of your products in order to give the customer an idea of versatility.

In addition, you should ensure that videos and images of your products are not only accurate but have a sense of scale.

Ideally, when customers view your page, they should be able to imagine themselves next to your product after seeing just the media content, knowing its size and weight, etc. Remember how Bellroy used an interactive slider to change the wallet’s look? Think like that.

Further, as consumers often view websites in other countries, it’s wise to have measurements in multiple units, i.e., in both cm and inches, both pounds and grams.

Lastly, ensure your page is optimized for all devices and operating systems. Customers move around between their laptops, tablets, and phones, and you need to make sure your page looks the part in every possibility to provide to ultimate ecommerece customer experience.

What’s after ecommerece customers experience

The world of ecommerce was shaken up immensely by the COVID-19 pandemic and the restrictions imposed on the world. Keeping up with consumers’ expectations is difficult, but after reading this article, you’ll better understand how to improve your ecommerece customer experience.

Remember, though, that the world of CX is constantly changing. What once worked may be rebuffed, and what once was reviled may become commonplace.

Ultimately, the decision about how to approach CX and what aspects to focus on is up to you, and there is no absolute right and wrong answer. Different demographics and industries have different needs, and you’ll need to test and figure out what works best in your case.

If you need a hand in analyzing what customers think of you, check out this blog post for further insights.

How to Use Consumer Insights in Your Favor: The Definitive Guide (2022)

Consumer insights are your customers’ truth – how they experience your product or service, how they felt about it, what they want, need, and desire.

Understanding your consumers’ needs and wants is essential to ensuring your brand’s future. Scanning, collecting, and analyzing customer feedback empowers businesses to learn from their customers – so they can innovate and improve customer experiences and generate positive sentiment.

This blog post is your definitive guide to consumer insights. 

We will explain what are customer insights, their importance, how you can use them in your favor, and what impact the spread of COVID-19 has had on customer feedback analysis.

Another note we would like to add, Revuze Explorer is one of the most advanced consumer insights tools out there. Our true strength is turning consumer insights into actionable action items for companies, all done in minutes instead of days & weeks.

Last update: November 2021.

What are Consumer Insights?

Consumer Insights are analyzed data businesses use to better understand customer wants, needs, attitude, and sentiment. Useful Consumer Insights are new, relevant and inspiring, and provide extensive knowledge of consumer desires, needs, and motivations. These insights help improve a brand’s interaction with customers, which creates better customer experience and improves revenue.

So, how do you find consumer insights? Well, data. 

Consumer insights are a result of data interpretation and analysis. They are aggregated from data collected with different tools, like trend analysis, customer satisfaction surveys, focus groups, Social Listening, and more.

Why are consumer insights important?

First and foremost, consumer insights give the tools to make better business decisions. Improving customer experience, focusing marketing campaigns, and optimizing brand innovation will help drive brand growth and revenue.

In addition, customer insight analysis helps identify consumer and market trends, pain points and attitudes. This information highlights consumer sentiment and experience on different parts of the consumer journey, data that helps brands build and maintain customer loyalty.

How can consumer insights improve advertising?

I’m glad you asked.

Advertising and marketing your product can be hard. It is hard to know how successful your campaigns are or how your latest ad resonated with your target audience.

The job can be even harder when we talk about e-commerce. Online consumers come from all walks of life, from different generations, with varied interests, and unique needs. For example, Baby boomers, Gen X, Millennials, and Gen Z are all very different and come with their own particular wants and needs. So, what may work for one audience won’t necessarily work for all.

This is where consumer insights come into use.

Consumer insights allow businesses to get a better and deeper look into their customers’ purchase decisions and behaviors. Insights enable brands to identify the best marketing campaigns and strategies that will resonate most powerfully with the targeted audience.

Using consumer insights allows you to make a smooth and data driven shift from product-focused marketing to consumer-centric marketing. For instance, what if you could focus your ad campaign on a customer-desired feature? Quality consumer insights enable you to do just that.

Taking an example from our latest Headphones Market Report, after analyzing customer feedback we have identified noise cancellation as the latest trend in the wireless headphones industry. Just look at the noise cancellation topic volume chart below –

Revuze Dashboard

Using this data to create a more focused, optimized, customer-centric advertising strategy will allow you to achieve your marketing objectives more effectively and efficiently, saving you valuable time and money.

How to use consumer insights in your favor?

Now that you know what are consumer insights and why they are so important. It’s time to understand how to use them in your favor.

We already covered the positive impact consumer insights can have on your marketing efforts. Here are some other aspects of your business can profit from consumer insight analysis – 

Consumer loyalty – 

Consumer or Brand loyalty is a strong positive consumer sentiment, meaning people will choose a particular brand over all the others. Businesses with a strong and well-founded brand loyalty will enjoy returning customers that’ll make repeat purchases. 

Quality consumer insight analysis provides information about which brand aspect is the customer’s favorite and why. Optimizing customer experience (or even the product itself) based on that data will make people feel heard, cultivating customers’ emotional connection and loyalty.

Customer service – 

Identifying customer pain points using insight analysis helps brands stay ahead of the game. Knowing what is bothering your customers will help you improve your customer service – you can plan your  response, prevent issues from recurring, and even train and educate your staff to better handle customer complaints and inquiries. 

Optimizing your customer service will not only create and cultivate customer loyalty, it will attract new clientele through positive word-of-mouth, and might even improve brand equity.

Consumer Insights In the COVID-19 Era

As the novel coronavirus (COVID-19) spreads across the world, consumers and businesses are forced to dramatically rethink their commercial behaviors. This means customer feedback and its analysis must change as well.

People are afraid and worried not only for their health, but for their jobs and saving too. These financial concerns have resulted in major emotional and economical shifts, ones that have to be taken into account when collecting and analyzing consumer insights.

Maybe the most important thing you can do is listen. The constantly changing global reality calls for flexibility and open mindedness. For example, you might want to abandon the normal barrage of survey questions. Asking fewer, more open-ended questions will help you get more extensive, detailed answers from your clients, so you won’t miss vital insights.

Another much needed aspect these days is adaptability. Quick thinking and short response times are essential for brands to survive such tumultuous times. building up your brand’s capacity to make short-term changes largely depends on quality information. Consumer insights allow you to test changes and prioritize future ones. Knowing what your customers are feeling and thinking will help you adapt to the coronavirus crisis.

Getting started with consumer insights

  • Establish your goals – Make sure you know what you want to learn from your data.
  • Identify resources – It’s important to be clear on how you will get the data – who’s going to collect and analyze it, what’s your collection method, what audience are you targeting?
  • Create a plan – In order to make sure all your efforts won’t go to waste, planning is key. So, think about what departments, processes, and strategies will use and benefit data the most.

We know collecting and analyzing customer feedback can be quite a challenge. Find out how Revuze’s AI powered CX analysis can help you get quality consumer insights that’ll push you to the next level!