Over the past few years, we have gained more data and insights about consumers (where, what, when and how they spend, save and shop), leading to greater visibility, efficiency and effectiveness in targeting consumers. This data-driven approach is necessary but not sufficient to generate real knowledge.

This requires combining data analysis with on-the-ground engagement, observation and trend detection. The imperative for leaders, therefore, is how to gain consumer insight into the development and deployment of strategy, whether in terms of innovation, communication or activation, or even choice around organization and operational model.

We have identified six practical principles that can help you on this journey.

Be clear on the key question: are you trying to generate new information or are you testing specific hypotheses? Both are useful in their own way. But most of the time, teams only focus on the latter, and worse, they tend to confuse the two.

As a leader, it is important to ensure that the key questions and how they contribute to solving a business problem are clear. There’s a difference between trying to understand why a category’s penetration and growth has stagnated versus choosing between two flavors (or scents).

Talk to the “exs” (experts and extreme users): Every business has a target segment defined by certain parameters. However, if a business needs to discover something new, it is not enough to only cater to the “average” target consumer. We would argue that engaging with the “average” consumer has diminishing returns, especially when it comes to discovering revolutionary ideas.

We have found that discussions with subject matter experts are extremely helpful in developing knowledge. For example, in hair care, talking to a salon stylist and a trichologist reveals some interesting patterns.

Engaging with “extreme” users (both heavy users and former users) is also informative in defining the value proposition, as they provide important clues and clues about what works and what doesn’t. , the latter often providing richer information.

Listen to the broader team: Business partners and sales teams interact with consumers every day and are a rich source of information. One must develop a keen sense of judgment to filter their contributions (what is influenced by their quarterly goals versus what is not).

The other part of the organization that interacts with consumers is the customer service/complaints team. These service interactions are a treasure trove of how and why a product or its proposition does not meet user requirements and how it could do so.

Observe, then ask (repeatedly): What consumers really want, what they think they want, and what they say they want are three completely different things. Most research involves asking a model question, to which the consumer gives a cursory answer. Observing the consumer as they purchase and use the product is essential.

As an example, in refrigerators, consumers not only use freezers to make ice and frozen foods but also to store masalas (using every cubic inch), which would influence product design . It is essential to question the consumer about their choice as they made it. Don’t just accept “I like the brand” answers, but ask follow-up questions. Why, for example. This can be very revealing.

Generating insights is a team sport: Consumer interactions should be done in teams of two to gain a balanced perspective, reduce bias, and allow a team to ask active questions.

Generating insights only begins during consumer interaction, and synthesizing the insights generated is an even larger team sport that requires different teams of two to come together. We have found that facilitating this synthesis requires skill and experience. This also needs to be actively planned.

Traveling across geographies (and time): Not all information generation requires interaction with the consumer. We are not suggesting that what worked in the West 15-20 years ago is the “lift-and-shift” solution for India (or any other geography).

But it’s useful to study trends in different markets and understand why they happened. When it comes to online behavior, inspiration may come from the East rather than the West.

In certain non-technological categories, we could go back to our roots and draw inspiration from our rituals and traditions, whether in terms of skincare ingredients or even construction materials.

The right combination of data and analytics, consumer observation and questioning, trend spotting and synthesis can create the magic potion of insights needed to ignite growth. And that requires CEO sponsorship.

These are the personal opinions of the authors.