Customer Insights
Actionable understanding derived from analyzing customer data and feedback.
Category
Analytics & Insights
Full Definition
Customer insights are the actionable conclusions derived from collecting and analyzing customer data, feedback, and behavior. They go beyond raw data to provide understanding that drives business decisions.
Data vs. Information vs. Insight: - Data: 200 customers gave a rating of 3 - Information: Average satisfaction is declining this quarter - Insight: Customers are dissatisfied due to recent wait time increases, and addressing staffing during peak hours could recover 15% of at-risk customers
Characteristics of Good Insights: - Actionable: Clear path to improvement - Specific: Not vague or overly general - Validated: Supported by sufficient data - Timely: Relevant to current business needs - Impactful: Connected to business outcomes
Common Use Cases
Real-World Examples
Scenario
Data: CSAT dropped 12% in March. Information: Drop correlates with new checkout flow. Insight: Customers over 55 struggle with the new mobile-first checkout; adding a "Classic view" option could recover this segment.
Outcome
The "Classic view" button increases conversion by 34% for users 55+, recovering the lost satisfaction.
Scenario
Data: NPS varies from 15-75 across 50 locations. Information: Top locations have longer-tenured managers. Insight: Manager tenure correlates with higher NPS; promoting from within and reducing manager turnover could lift bottom 10 locations by 25+ NPS points.
Outcome
Company changes hiring and retention policies for managers. Bottom 10 locations improve an average of 28 NPS points within a year.
Scenario
Data: 23% of customers mention "onboarding" in feedback. Information: Onboarding sentiment is 40% negative. Insight: Customers who complete the optional training have 3x higher retention; making training more prominent and incentivized could significantly reduce churn.
Outcome
They add onboarding completion rewards and in-app reminders. Training completion goes from 30% to 70%, churn drops 22%.
Related Terms
Voice of Customer (VoC)
A methodology for capturing and analyzing customer feedback, expectations, and preferences.
Theme Analysis
Categorizing customer feedback into recurring topics and patterns.
Sentiment Analysis
AI-powered analysis of text to determine whether feedback is positive, negative, or neutral.