Customer insight has been defined as a profound truth about a customer based on issues and goals related to their behavior, experiences, beliefs, needs, or tasks.
Customer understanding is not simply about raw data or research. It is a multidimensional view of customers derived from a strategic analysis of various qualitative and quantitative data and information, including demographic data, surveys and consultations, actual operational data, frontline staff feedback, formal and informal correspondence, and customer feedback.
There are three key elements to customer understanding that help show which anticipated services customers aren't using and what their expectations are:
Segmentation
Which of the proposed services do you think customers prefer, and which ones do not use them?
Use
Analyzing existing customer databases to determine which customers will receive service and through which channels they prefer to communicate (mail, in person, online, etc.). This can be compared to expected uptime identified through segmentation.
Participation
Consulting, customer journey mapping, customer satisfaction measurement, etc., to analyze customer needs, wants, behaviors, and expectations.
Customer information can be used to inform strategy and policy, allocate resources, manage performance, market services, change behavior, and inform service design.