Why human insights are crucial for small business success
Image Credit: UserTesting
Throughout the pandemic, there has been a huge focus on helping small businesses and start-ups survive. With the growth of online services, the ever changing highstreet and the easing of COVID-19 restrictions, what do small businesses and start-ups need to do now?
I specialise in supporting small businesses. Every day, I speak to people from startups right through to medium-sized scale-ups, with the aim of understanding what they’re trying to do, their current challenges and where they’re working to become more customer-focused. I paint the picture of how qualitative human insights can help with that. I’ve realised that too many businesses haven’t yet understood the importance of customer empathy, how it can be unlocked with human insights and leveraging this to help a business go from strength to strength.
What do your customers want and need
Without knowing what customers want and need, how can firms create a successful product or programme? A great idea still needs to be checked against customers’ desires. Even if you fall into your target demographic, presuming to be representative of all customers can be detrimental to a business. Its vital customers are asked their opinions so that the product has the correct market fit. Without this, there’s a risk of being resource intensive without yielding results.
Many startups have tight or nonexistent research budgets, so aren’t able to commission formal research. One workaround is to speak to your personal network to get their insights. Any opinion is of value, but be mindful of friends’ and family’s biases and whether they find it hard to share critical opinions. Identify your harshest critics if this is the route you choose to take. Alternatively, set up a free, anonymous form on Google to capture feedback. This may make your network more comfortable sharing honest opinions.
For startups, keep it simple and do what you can. The word “research” can be scary, but gathering whatever feedback you can is a really important part of enhancing your business. As your business and budget grows there can be a more refined process, with more customers available for feedback.
Build out your network
For more established brands, an existing customer base can be a great source of consumer feedback. By working to show customers they are valued, they tend to be more inclined to do a brand the favour of giving feedback, pointing out flaws or bugs. This can be kickstarted by sending out an email asking to speak to people. If there’s concern about a low response rate, offer a discount or free gift in return.
While surveys are a great way of gathering feedback in a short time frame, conversations offer opportunities to dig into the details, uncovering invaluable qualitative insights. This will enrich your understanding of how customers think and feel, and ensure feedback can be clarified and solutions provided that meet customers’ expectations.
Building a network is hard and slow, especially for small businesses with a small budget, but it is important. To gain customers quickly, create an interesting landing page with a link to sign up to be the first customers. This will entice people and let them know they’re part of something exclusive.
Staying afloat after lockdown
The ecommerce landscape changed drastically during lockdown and companies had to rapidly pivot to digital-first operations. With so much time spent online, consumers became more discerning than ever before and digital experiences had to become seamless.
As the world reopens, many consumers are returning to the high street. To stay competitive, businesses are forced to offer successful omnichannel experiences to reach all of their target market, whether they choose to shop online, in-person or both.
It’s vital that businesses understand their customers' needs and behaviours, and subsequently, how these have changed over the past two years. As an example, influencers have taken advantage of the omnichannel approach by browsing clothes online, then ordering to store for click and collect. The outfits are tried on and photographed in the store’s changing rooms, then returned instantly. This saves hours of time by cutting out trips to the post office and avoiding browsing in stores. It also bypasses issues like cash flow while refunds are processed or items are not in stock. It’s a prime example of people retaining the element of “ease” from lockdown. Thus, businesses need to ensure it remains and if anything, provide an even easier service.
A common pitfall
The worst thing companies can now do is rest on their laurels, mistakenly thinking customer feedback and human insights aren’t needed. Founders are typically the most passionate person about their business, nurturing it from an idea into a successful company with many hours of hard work. So it’s no surprise they are incredibly invested, and often believe their vision is the best path forward.
However, as the business grows, it’s only natural for founders to become more removed from the customer’s experiences. To resonate with the broadest customer base, it’s important to get a varied viewpoint from a robust customer sample. Where possible, opinions should be supported by data and customer insights. This will only increase business success.
The most common successes and failures
Every piece of research doesn’t need to be perfect. The traditional research method can take months, but it isn’t the only way to gather insights. Businesses can save time and money by condensing their approach: ask about a few important things at a time instead of getting tied down to an academic approach.
Being able to adapt really quickly is incredibly successful and important for businesses in this dynamic landscape. An open and positive team that’s receptive to new ideas, ready to learn and willing to let go of plans that aren’t working is key. Be supportive of each other, listen to fresh suggestions and be willing to change the process if it’s what the customer wants. There needs to be flexibility.
To increase the pace of growth, it’s important to have an outward thinking team with a positive mentality. In my line of work, I sometimes speak to companies with a team of ten. Three months down the line, they’ve had significant growth and we’ll speak again when they have three product teams. The pace of change has often been accelerated by the team’s attitude. Finding a team who can grow with the company is often a precursor to success.
Top 3 tips
Start by trying to speak to as many customers as you can. UX researchers will often prioritise really specific and representative research. When a business is small, being too specific can be detrimental. Don’t worry too much about being perfect with it - just get as many people as possible to give regular feedback.
Set aside some time every month to check in with customers - ask them how they’re finding your product and or user experiences. Little snippets of human insights will become invaluable.
Always ask about customers’ challenges. A product should be a solution. If a company is aware of its customers' challenges, products can be put in front of them to see if they’re helpful or appreciated. If not, you can change it.
