How product intelligence can help increase ROI
Calculating whether you have a low or high return on investment (ROI) involves comparing your investment costs with the value of its results.
When analysing ROI in the business and product development spheres, your calculations should extend beyond tangible financial returns. Other factors, like customer satisfaction, are also important to consider. Product intelligence enables you to use consumer-focused product research and development to maximise ROI for your business.
Read on to discover how you can increase your ROI with the help of Vypr’s product intelligence platform.
What is product intelligence?
Product intelligence refers to the optimisation of your product development process and marketing initiatives based on actionable insights from your target audience. The process begins with the use of product intelligence tools to gather reliable customer data. This data provides a deeper understanding of user behaviour, specifically the needs and perceptions of your target group.
Your business can then leverage this data by implementing agile development methodologies to make changes at different stages of your product development life cycle. This allows you to better meet your consumers’ needs, resulting in better products and enhanced ROI for your company.
ROI can be measured through a variety of short- and long-term results. These include an increase in sales, as well as improved customer experience, loyalty and retention.
Common pitfalls when aiming to increase ROI
There are several pitfalls you should be aware of when you set out to maximise your business ROI. Some common examples include the following.
Not tracking the correct ROI metrics
When it comes to calculating ROI, businesses often focus on vanity metrics instead of more results-driven factors. An example of this would be focusing on the growth of website traffic without looking at whether or not it led to an increase in conversion rates.
Vanity metrics often have little to no real value and prioritising them makes it far more challenging for a business to effectively improve their digital ROI. Rather, you should focus on tracking more impactful metrics such as brand awareness and purchase consideration and intent.
Prioritising short-term results over long-term results
ROI is often viewed as a once-off calculation of profit minus expenses and overhead costs. While immediate, tangible results like the financial return from higher sales are important, they do not take into account long-term ROI factors like customer loyalty and retention.
These sustainable results can often be far more valuable. They are, therefore, essential to consider when evaluating the benefits of a product development strategy or marketing campaign.
Using inaccurate or unreliable data
Having access to accurate and reliable data is essential for effectively calculating ROI. Businesses relying on assumptions or untrustworthy sources for their data cannot properly measure customer perceptions of and reactions to their product development or marketing efforts.
This prevents the collection of useful brand and product analytics that could be used to achieve a better ROI.
Lack of consumer feedback throughout the product development timeline
Businesses often have to make changes to a product after it has been released in order to fix problems highlighted by product usage data. This process is not only very expensive but can also reduce customer retention.
These setbacks greatly impact a company’s ROI. However, they can be avoided by validating the customer journey at each stage of the development process instead.
How to improve ROI with product intelligence
Product intelligence solutions help increase ROI by supporting data-driven marketing strategies and development processes. Here are some of the advantages of a product development process powered by Vypr’s innovative product intelligence platform.
1. Track Your Brand
Vypr’s unique brand tracker monitors your overall brand health and gathers data to help you discover what customers really think of your brand or product. This feedback helps you identify potential shortcomings and discover innovative new ways to enhance your offerings and improve customer satisfaction.
Besides monitoring your own brand, you can also track the health of competitor brands for valuable industry insights. It is also extremely useful to micro-analyse regional and topical digital marketing campaigns. This provides you with a more in-depth understanding of how certain actions influence customer behaviour.
2. Gain Reliable Consumer Insight
Gain a more complete picture of your target audience’s behaviour and needs with Vypr’s reliable consumer insights platform. To ensure consumer data reliability, all members of the Vypr Community undergo consumer profiling and validation processes. Every participant receives an integrity score, and ‘bad actors’ or unreliable members are removed.
Participants are also carefully selected to ensure representation across various geo-demographic categories. This allows for versatile cross-market testing and reinforces the reliability of Vypr’s customer insight platform.
3. Access Data Backed by Behavioural Science
Vypr’s product intelligence platform uses innovative behavioural science research to provide businesses with fast, accurate consumer feedback. Behavioural product validation testing relies on System 1 responses.
Unlike a System 2 response, which relies on slower, more logical decisions, a System 1 response requires users to answer a question quickly and make instinctual decisions based on emotions. This ensures data integrity and helps businesses gain a better understanding of customer behaviour.
Access to reliable consumer and product data is essential for effective data analysis and decision-making. By relying on scientific research rather than assumptions, businesses have a higher chance of increasing ROI by reaping the benefits of a new product development strategy that is tailored to their customers.
4. Implement Agile Innovation
An agile product development life cycle involves consumer testing and validation throughout different product development stages. The consistent use of product analytics tools allows product managers and teams to continuously optimise their designs based on real-time market intelligence and customer insights.
Agile product development methodologies enhance product performance, ensuring the best user experience possible. This not only helps to improve conversions but also reduces the need for costly changes after or during the later stages of a product development cycle.
These benefits maximise ROI by saving your business time, money and effort while also improving consumer satisfaction and resulting in increased profits.
Build better products faster with Vypr
Vypr is the world’s leading product intelligence platform. It enables you to understand changing consumer behaviour through fast, cost-effective consumer insights.
Enhance your product development and research processes. Build products that effectively meet your target audience’s needs and increase your ROI with innovative product development based on reliable consumer intelligence.
Discover the true value of your product development and marketing strategies. Try Vypr’s online ROI calculator now.