What Is Customer Centricity All About?

Businesses think they understand their customers—what they want, where their pain points are, and what makes them tick. But when you get under the hood of their textual data, the findings are often surprising.

Customer research is a common way for businesses to get to know their customers on a deeper level, but traditional solutions rarely make it past the surface level. In this blog, we’ll explore what customer research is, how to do it well, and why AI-powered platforms like Viable are revolutionizing the space.

What is customer research, and why is it important?

Customer research is a strategic approach that businesses employ to truly understand their target audience. By gathering, analyzing, and interpreting information about potential and existing customers, businesses can gain a comprehensive understanding of their audience's needs, preferences, behaviors, and feedback.

This understanding is pivotal, whether a company is on the brink of launching a new product, aiming to enhance an existing service, or just trying to stay competitive. The insights derived from customer research serve as a compass, guiding businesses towards informed and impactful decisions.

Here are some of the ways it helps businesses improve their offerings:

Informed decision making

In an era dominated by data-driven strategies, possessing accurate and relevant information about one's customers is invaluable. This treasure trove of data enables businesses to craft strategies that align with their audience's needs and anticipate future trends. The result? A drastic reduction in potential errors, ensuring every business move is strategically aligned with a company’s overall goals.

Enhancing user experience

The modern consumer is discerning and has specific expectations. Through customer research, businesses can delve into these expectations, understanding the nuances of their audience's desires. This deep insight allows for the refinement of offerings, ensuring every product or service touchpoint meets the consumer's needs. The impact of this is profound: delighted customers don't just transact; they forge relationships with brands. They return, remain loyal, and crucially, they champion the brand, amplifying its positive reputation.

Competitive advantage

In a marketplace overflowing with choices, differentiation is both challenging and essential. Customer research equips businesses with the tools to stand out. By deeply understanding their audience, businesses can identify market gaps, cater to unmet needs, and even predict emerging trends.

Types of customer research

In the vast domain of customer research, various methodologies cater to different business needs. Each method is designed to extract specific insights, ensuring businesses have a holistic understanding of their customers. Let's explore these methods in greater detail:

Surveys and questionnaires

These are among the most popular tools in the researcher's arsenal. Surveys and questionnaires are structured instruments that collect quantitative data, often from a large sample size. By posing standardized questions to participants, businesses can gather consistent data, making it easier to identify general trends, preferences, and patterns. They're especially useful when you want to validate hypotheses or measure specific metrics, like customer satisfaction or product preferences.

Interviews

Interviews are intimate, one-on-one interactions that delve into the qualitative aspects of customer experiences. Unlike surveys, which might skim the surface, interviews dive deep. They explore the motivations, emotions, and stories behind customer choices. By asking open-ended questions, researchers can uncover the 'why' and 'how' behind certain behaviors, providing a richer context to quantitative findings.

Focus groups

Imagine a roundtable discussion where a diverse group of participants share their views on a particular topic. That's what focus groups are all about. Moderated by a trained professional, these discussions allow businesses to gauge collective reactions to new products, services, or concepts. They're particularly useful when trying to understand group dynamics, cultural perceptions, or initial reactions to a new idea.

Observational research

Sometimes, the most genuine insights come from simply watching. Observational research is about studying customers as they interact with a product or service in their natural environment. By doing so, businesses can identify unspoken pain points, usage patterns, and behaviors that might not be evident in a survey or interview.

Feedback and reviews

In today's digital age, customers share their experiences, both good and bad, on various platforms. Analyzing this feedback, whether it's sourced from online reviews, social media comments, or direct communications, is a goldmine of insights. It offers a real-time pulse on customer sentiment, highlighting areas of excellence and pinpointing where improvements are needed.

Ultimately, the method of customer research chosen often depends on the specific objectives of the study. Whether it's understanding broad trends, diving into emotional experiences, or observing real-world interactions, there's a research method tailored to provide the insights businesses seek.

Best practices for effective customer research

Customer research is a powerful tool, but like any tool, its effectiveness depends on how it's used. To ensure that your research endeavors are both efficient and impactful, it's essential to follow certain best practices.

1. Define clear objectives

The foundation of any successful research initiative is clarity. Before diving into data collection, take a step back and ask, "What do we want to achieve?" This could range from understanding the preferences of a specific age group to gauging customer reactions to a newly launched feature. By setting clear, specific goals at the outset, you ensure that your research efforts are directed and purposeful. It also helps in designing the research methodology and crafting relevant questions.

2. Choose the right method

The world of customer research is vast, with a plethora of methodologies at your disposal. However, not every method is suitable for every objective. It's crucial to align your research method with your goals. For instance, if your aim is to get a broad understanding of market trends or general customer preferences, a large-scale survey might be the way to go. On the other hand, if you're looking to delve deep into individual customer experiences or motivations, in-depth interviews or focus groups might be more apt. Making the right choice here ensures that the insights you gather are both relevant and actionable.

3. Analyze and act

Collecting data is just the tip of the iceberg. The real magic happens when you dive deep into this data, sifting through it to extract meaningful insights. Analysis is where patterns emerge, stories are told, and actionable strategies are formed. But remember, insights are only as good as the actions they inspire. Once you've gleaned valuable information from your research, it's imperative to implement changes, tweaks, or innovations based on these findings. This is where the real value of customer research is realized.

4.  Iterate and stay updated

The business landscape, much like customer preferences, is ever-evolving. What's relevant today might be obsolete tomorrow. As such, customer research isn't a one-off endeavor. It's a continuous process of learning, adapting, and evolving. Regularly revisiting your research, updating your methodologies, and staying in tune with market shifts ensures that your business remains agile and customer-centric.

Effective customer research is a blend of clarity, adaptability, and action. By adhering to these best practices, businesses can ensure that their research efforts are not only insightful but also translate into tangible business outcomes.

Transforming the user experience through customer research with Viable

Customer research and user experience (UX) research are both integral pieces of successful product design. While each has its unique significance, their combined insights, especially when harnessed through platforms like Viable, can lead to transformative results for businesses.

As we’ve discussed, customer research is the compass that points businesses in the right direction. It's all about understanding who the customers are, their desires, challenges, and behaviors. This research offers a panoramic view of the market, highlighting potential opportunities and areas that need refinement.

While customer research provides a bird's-eye view, UX research brings the magnifying glass. It focuses on the intricacies of how users interact with a product or service, aiming to enhance every touchpoint of their journey. From the layout of a website to the functionality of an app, UX research ensures every detail aligns with user preferences and expectations.

But how can you combine the best of both of these areas efficiently?

Enter Viable. This generative analysis platform seamlessly integrates the broad findings of customer research with the detailed insights of UX research. But it doesn't stop there. Viable's AI-powered generative analysis goes a step further, unlocking deep insights that might be missed by traditional methods. By leveraging the power of Viable, businesses can transform raw data into actionable strategies, ensuring their offerings are both market-aligned and user-centric.

The ultimate aim for businesses is to design products or services that resonate deeply with their audience. With the combined power of customer research, UX insights, and Viable's analytical prowess, this goal becomes more attainable than ever. Businesses are not just equipped with knowledge; they're empowered to act, refine, and innovate with confidence.

Harness the combined might of customer and UX research with Viable's cutting-edge analysis. Dive deeper, understand better, and act smarter. Try a free demo today and experience the transformative impact of Viable on your business strategies.