Short Description: Consumer Analysis is a very important type of analysis that almost all Marketing Managers, Business Analysts need to do before making important decisions. A most comprehensive analysis will require these 3 layers of data to support business decisions and define marketing strategies.
Consumer analysis is essential in a company’s business plan, especially in a marketing plan. Either as you’re leading a marketing team to launch your company’s new product, or you just simply to review your knowledge of the current target profile, then conducting a consumer analysis is a step to do.
So what is a consumer analysis?
“Consumer analysis is a process of identifying & collecting information about the target market and target consumer, that in the end, to be able to make decisions based on a better understanding of consumer profile, consumer needs and their behaviours.”
This type of information could possibly serve to make business decisions on target marketing (where / what / who to target), process optimization, and customer relationship management, etc.
The first step of consumer analysis is consumer profiling. How to make your consumer profile become appealing and drive company marketing activities based on it?
Consumer Profiling contains 3 levels of data that could possibly get from multiple sources from in and out of your cooperation systems.
Identifying consumer profile via internal systems (CRM system, website analytics, mobile apps, point-of-sale, social network channels…)
Extending consumer profile through external sources by purchasing somebody else’s data whose consumer is similar or overlapping in demographics
Verifying your consumer profile by paring it with consumer knowledge provided by a 3rd party like market research companies.
P1 - Three layers of data sources
The purpose of Consumer Profiling is fulfilling as much as possible what to know about your target consumer such as: where are they in terms of geographic, their behaviours online-offline, their habits and interests, gender, lifestyle, what do they need and care for when purchasing the product/services that your company is offering, referred payment method (credit card or cash or online transactions), etc. pretty much all the environmental factors that would help you to shape out the typical consumer that would bring out the most sales and revenues in the future.
P2 -Consumer Profiling Components
Layer 1: Identifying consumer profile via internal systems.
You’re already on the way defining your consumer profile, then you will need to give it a deeper view as well. Start collecting every information about your consumer and store it in your CRM system, this as well, by the meaning of implementing of website tracking with Google Analytics, Google Tag Manager, social media platforms tracking (Facebook, LinkedIn, Zalo, Youtube, etc.) A proper tracking set up will not just able to give the information you need about the people who visited your website & social media channels but to break through all the myth of “unknown” sources of traffic. From then, the consolidated data from online and offline channels becomes useful for the analysis stage.
If you already have a target consumer in mind, double checking that knowledge between channels: comparing the ideal target profile with people who gave visits on your website are the same type of profile that also check out your social media channels and in the end the one who makes a purchase?
Layer 2: Extending consumer profiling by purchasing another company’s owned data.
It’s never too bad to say that you want more data, specifically the type of data which would enhance your target consumer profile, and increase the chance on conversing consumer to buy your products or creating a brand new revenue stream. Purchasing another company’s owned data is the 2nd layer that would bring target marketing at the next level.
A pretty common usage of 2nd layer data is applying in Airlines - Hotels - Car Rental Services Industries for which all parties find the complimenting benefits while sharing the information, For example, Airline customers receive hotel deals or are reminded to book car rental services after booking a flight online or vice versa.
Here is another example in the retail industry. A shoe manufacturer’s customer shares the overlapping profiles with an apparel retailer’s customer. Therefore, the shoe manufacturers can purchase the customer email list from apparel retailers for their email marketing strategy.
One top thing to keep in mind before using this 2nd layer data is the data quality. This data needs to be collected and owned by the company-owned system before making any purchase decision or partnership setup.
Layer 3: Verifying your consumer profile with a 3rd party data such as a market research company and Data Aggregators company.
If using the 1st and 2nd layers of data could give you a deeper and broader understanding of your consumer profile. Using these two sessions already helps to extend your revenue earning possibility, but a 3rd party data from companies like market research companies or Data Aggregators (Acxiom, Oracle…) would bring the volume into your decision making. This is not only to verify what you have already known but also extend it with scale and ranges in your customer base.
To be able to apply the 3rd layer data, you need a clear understanding of (1) your business, marketing goals and internal operations; and (2) Data Aggregators’ way of collecting data and their methodologies. By then, the purchased data will actually show the result on investment.
Example 1: Running a targeting ad for your products based on mobile locations (which purchase from company collects mobile phone locations or via wifi connection...)
Example 2: You are running a luxury spa services company and you want to target customers who are having the lifestyle and income that could be able to afford your services. By purchasing a research study that focuses on affluence consumers and their behaviours on both online and offline by a market research company will help you invest better in your marketing strategy.
What are the best practices?
In reality, not all companies are able to purchase both 2nd and 3rd layers of data since it requires knowledge, money and time, etc... At DRIVE, our opinions when it comes to implementing data into the business are:
Always start small and scale. It's better to cross different data sources, find quick wins and move on.
It’s not just data OR business sense, it should be both. A good Business Analyst is able to find the right balance between business context and what data is saying (aka you can not read the patterns, find the insights if you don't know where to dig)
Data beats opinions. Many companies are still making the decisions based on sense or gut feelings and sometimes it’s difficult to change some mindsets and strategies that have been implemented for years.
For further info, you can meet us, call us, message us or take a look at our website www.drive-agency.com
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Created in 2017, DRIVE is a digital performance company providing clients with a data-driven marketing strategy, powered by skilled talents, reliable data, and scalable technology system. Certified on major analytics and conversion solutions such as Google Analytics, AT Internet and Adobe Analytics, we combine our expertise to meet your business expectations. With experience in both brand and agency matters and working within international environments for more than ten years, we can accompany you in facing your challenges.