Closing the gap between CX and business perception by integrating consumer insights

Editor’s note: Jim Longo is the co-founder and chief strategy officer at Discuss.

We’ve all experienced it. You visit a website excited to buy a product you saw advertised, only to find yourself lost in navigating an overly complex website, unresponsive customer service and a frustratingly complicated checkout process. 

Now reimagine the scenario, except this time:

  • The website loads instantly.
  • A chatbot assists you in finding exactly what you're looking for.
  • You use a one-click checkout feature for a seamless purchase.
  • You receive a personalized thank-you e-mail with a discount code for your next purchase.

This is a classic example of the empathy gap – the disconnect between what companies think they deliver and what customers experience.

Bain & Company found that across nearly 400 organizations, 80% of companies believed they delivered a superior customer experience while only 8% of their customers agreed.

Why is there such a disconnect?

The Boston Consulting Group's article, "The Introverted Corporation," exposes the reality that many companies say they are consumer-centric but are failing to put it into action, citing a recent study that found that a staggering 80% of companies aren't using customer insights strategically. Many businesses are launching products nobody wants, crafting marketing campaigns that flop and ignoring their customers.

The solution? It’s time to embrace consumer centricity and embed consumer insights into your strategic business decisions.

Barriers to using consumer insights effectively 

If consumer insights are so valuable, why aren’t more companies using them effectively? Several barriers contribute to this issue:

Outdated consumer insights systems and processes. 

Using outdated systems and processes can be cumbersome, complex and costly, often discouraging businesses from listening to their customers more. Simplify your approach by centralizing everything into one global "human centricity" hub and leverage the digital age's powerful tools – such as live webcam interviews and asynchronous surveys – to reach a broader audience and foster deeper, more meaningful connections worldwide.

Thinking consumer data alone is enough. 

Collecting data is only half the battle; without the ability to sift through and analyze it effectively, it’s essentially wasted. According to the Boston Consulting Group, increasing your spending on consumer insights doesn’t guarantee that you will use those insights strategically or adopt a consumer-centric approach. What truly matters is having the mechanisms and capabilities to interpret the data and translate consumer insights into actionable strategies.

Consumer insights and organizational silos. 

Operating in silos often leads to strategies that are fragmented because no one has a complete picture of your customers’ needs and preferences. Consumer insights should be the heartbeat of all business decisions across all business groups. When insights are shared and leveraged across all teams, every decision, from product development to marketing, is informed by a complete and accurate understanding of your customers.

“Companies need to increase their surface area by exposing internal functions to external realities.” – Boston Consulting Group, The Introverted Corporation

4 ways to embed consumer insights into business strategies

Cultivate a consumer-centric culture. 

Foster a consumer-first mind-set throughout the organization by first defining what “customer-centric” means for your business and emphasizing the importance of the voice of the consumer. Share stories of how customer insights have driven positive outcomes. Ensure that every team member listens to customers and is aligned on that goal. Make being customer-centric a core value. For more on creating a customer-centric culture, check out this HubSpot blog.

Measure impact by setting consumer-centric goals. 

Use customer insights to set measurable, impactful goals. Not “we want happier customers” but “increase customer satisfaction by 15% this quarter” or “slash churn rates by 15%.” Clear, bold targets keep everyone focused and accountable.

This blog by Zendesk shares ways to measure the success of customer centricity and recommends carefully monitoring your customer satisfaction score, churn rate and customer lifetime value.

Leverage tools to democratize access to consumer insights.

  • Unified platform: Simplify your research process with an all-in-one data hub or platform that enables anyone, not just experienced researchers, to quickly and easily connect with customers through live interviews, asynchronous studies and more. 
  • Generative AI for deeper insights, faster decisions: Manually analyzing insights, especially qualitative insights, can be tedious as you comb through piles of interview transcripts. Streamline your workflow by utilizing AI-powered tools to analyze customer feedback and identify key themes, emerging trends and pain points nearly instantaneously.
  • Centralized global research hub: Implement a global research hub to centralize all customer feedback. This ensures that everyone across the organization, not just sales and marketing, can easily access real-time insights and integrate them into their decision-making processes.
  • Data visualization tools: Use data visualization tools like heat maps, sentiment analysis charts or affinity diagrams to make insights more accessible and engaging, helping stakeholders better connect with the consumer data on an emotional level and make decisions based on your consumers’ genuine needs and behaviors.

Adopt an agile approach to consumer insights.

Remember Blockbuster? The world changes, and so do customer needs. Establish a continuous feedback loop that leverages the voice of the consumer to direct and guide your strategies.

By regularly collecting and analyzing consumer data, whether through quantitative or qualitative studies, you can use these real-time insights to keep a pulse on emerging trends and issues, allowing you to adjust your strategies and avoid being out of touch with your consumers. It’s survival of the fittest, and in the business world, that means being agile and responsive.

Consumer-centric companies that are leading the way

While giants like Amazon, Netflix and Meta are known for their customer focus, there are also smaller companies making significant strides in consumer centricity. 

Trader Joe’s. Known for its unique products, personalized service and quality service, Trader Joe’s excels in keeping customers at the heart of the business. The grocery chain is a leader in sustainability, focusing on reducing food waste and enhancing cleanliness and safety based on customer feedback. The brand is well loved by customers and employees.

Discount Tire. Renowned for its collaborative culture and commitment to customer service and integrity, Discount Tire stands out with its Treadwell program. This initiative allows customers to find the right tires online before visiting the store, blending the convenience of online shopping with personalized in-store service and enhancing the overall customer experience.

Samsung. In 2022, Samsung introduced a revamped support site and chat functionalities, resulting in a 19% boost in customer engagement. The company leverages AI to analyze feedback and calls, identify trends and address potential issues proactively, achieving top customer satisfaction ratings among cell phone manufacturers.

Allstate. Leading the property insurance sector in customer satisfaction, Allstate swiftly implemented touchless claims using satellite imagery and mobile claims centers during the pandemic. These virtual tools enabled quick service without the need for in-person interactions.

Consumer insights fuel successful businesses

Human-centricity is the new competitive edge. With only one in five companies effectively utilizing their consumer insights strategically, there’s a huge opportunity for those willing to prioritize it. By cultivating a consumer-centric culture, setting focused goals, leveraging tools to democratize access to consumer insights and adopting an agile approach, you can make consumer insights fuel for your business’ success.

Start today by evaluating how your company currently uses consumer insights and identifying areas for improvement.