Unlock the power of AI in Market Research.
In a rapidly digitizing world, industries constantly look for the next big thing to maintain competitive relevance. One technology consistently making headlines is Artificial Intelligence (AI). Especially within the sphere of market research, AI is becoming a game-changer.
AI breaking siloes of traditional market research-
- Traditional market research takes a lot of time, money, and effort and is mainly used for major decisions, as it’s too costly for smaller ones.
- The findings from such research are often kept within a select team, used once, and discarded, leaving people to decide the next steps themselves.
Adopting artificial intelligence has reduced these challenges and revolutionized how companies perceive and engage with their prospective customers. AI offers businesses a unique opportunity to broaden their horizons, venture into untapped markets, and redefine the realm of market research.
Get prepared to leverage artificial intelligence (AI) in market research and harness its power for an edge in the dynamic marketplace.
How AI (Artificial Intelligence) Powers Market Research?
With the advent of Artificial Intelligence (AI), market research has witnessed a paradigm shift. Let’s delve into how AI is revolutionizing market research and helping businesses make more informed decisions.
The Rise of AI in Market Research
AI’s role in market research isn’t a mere upgrade; it’s a transformation. Traditional market research methods, like surveys and focus groups, often relied on historical data and manual analysis. While these methods provide valuable insights, they can be time-consuming and sometimes need to be revised in predicting future behaviors. AI bridges these gaps by providing real-time, predictive analysis based on vast data.
Today, AI is already significantly impacting the market research industry. According to a recent SurveyMonkey survey, 26% of market researchers leverage AI daily or weekly.
Enhanced Data Collection
The era of AI has ushered in advanced tools like chatbots and virtual assistants for data collection. Chatbots can conduct interactive surveys instead of conventional survey forms, adapting their questions based on user responses. This improves respondent engagement and leads to more accurate data collection.
For example- Consider chatbots on websites. Brands like Sephora use chatbots to interact with customers, collecting real-time data on their preferences and concerns. This real-time feedback is invaluable and can be analyzed immediately for actionable insights.
Predictive Analysis
One of AI’s most significant advantages is its predictive capabilities. AI models can forecast future market behaviors by analyzing historical data and current trends, enabling businesses to strategize in advance. For instance, an AI algorithm can predict a potential rise in demand for a product based on various socioeconomic factors, allowing companies to adjust their production or marketing strategies.
For example- Netflix utilizes AI to analyze viewing patterns and preferences. This data isn’t just used to recommend shows but to predict which type of content will be a hit in the future. This allows Netflix to make informed decisions when purchasing or creating new content.
- Netflix employs AI and machine learning to determine the most engaging images for viewers as they browse numerous titles.
- Netflix introduced the AVA Discovery view to select stills from its vast collection, used as representative thumbnails to enhance viewer engagement.
Real-time Market Monitoring
AI-powered tools can monitor various online platforms, from social media to news sites, in real-time. This constant vigilance allows businesses to quickly identify and react to emerging market trends or sudden shifts in consumer sentiment.
For example- Athina Kanioura, PepsiCo’s Chief Strategy and Transformation Officer, notes that AI has revolutionized our engagement with nearly every business. It has endowed businesses with intelligent systems, revolutionizing problem-solving, consumer engagement, and product creation. For PepsiCo, AI is pivotal.
AI transforms every aspect of PepsiCo’s operations, from determining the optimal potato planting time to forecasting the number of Lay’s bags required on store shelves. As AI’s potential grows, its integration into the company’s workflow is crucial for guiding PepsiCo into the future.
Deep Dive into Consumer Behavior
Traditional market research often skims the surface of consumer behavior. However, AI-driven sentiment analysis tools can gauge consumer emotions and opinions by analyzing online comments, reviews, and posts. This profound insight helps brands understand the ‘why’ behind consumer choices, paving the way for more personalized marketing strategies.
The best example today is that Amazon’s recommendation system doesn’t just look at your recent purchases. It deepens into browsing habits, wish lists, and even how long you hover over a product. This deep understanding of behavior allows Amazon to make incredibly accurate product recommendations.
Amazon’s Just Walk Out technology, powered by Generative AI and other innovations, is rendering checkout lines obsolete.
Automating Repetitive Tasks
Tasks like data entry, sorting, and fundamental analysis, which once consumed considerable time, are now efficiently handled by AI. This automation allows market researchers to focus on more complex calculations and strategic planning.
For example, market research firms use AI tools to automatically sort and categorize large amounts of feedback from open-ended survey questions. Instead of manual sorting, which is prone to errors and biases, AI can quickly type responses into themes and sentiments.
Advanced Visualization Tools
Data is only as good as its interpretation. AI-powered visualization tools represent data in intuitive formats, making it easier for businesses to decipher complex patterns and correlations. Whether it’s a heat map showing consumer concentration or a line graph depicting sales trends, visualization brings data to life.
For example- Tableau, a popular data visualization software, now integrates AI to help automatically identify patterns and suggest visualizations. For instance, if a company like Adidas wants to see shoe sales data by region, AI can instantly recommend the most effective way to visualize that data.
Reducing Human Bias
Market researchers aim to remain objective, but human bias can sometimes creep in, skewing results. AI, being machine-driven, inherently removes this human element, ensuring that insights remain unbiased and authentic.
For example- When Procter & Gamble wanted to test a new product’s appeal, they used AI tools to analyze feedback. The tool ensured the input was analyzed without human biases, providing a more accurate representation of market sentiment.
Seamless Integration with Other Tools
Many businesses use various tools, from Customer Relationship Management (CRM) systems to sales analytics platforms. AI’s adaptability allows it to integrate seamlessly with these tools, synthesizing data from various sources to provide a holistic market overview.
For example- HubSpot, a marketing platform, integrates AI to connect with tools like Shopify. It analyzes purchase data to segment customers and predicts which segment is more likely to respond to a marketing campaign.
Democratizing Market Research
Advanced AI tools, once available only to large corporations with deep pockets, are now accessible to small and medium-sized businesses, thanks to cloud computing and Software-as-a-Service (SaaS) models. This democratization has leveled the playing field, enabling even startups to harness the power of AI in their market research efforts.
Looking at this proven success of big brands, AI will prominently take over crucial time-consuming tasks, making market research more accurate and fast.
Will AI replace jobs in Market Research? Should we worried?
Without a doubt, AI technology brings transformative advancements to research, leading many to wonder: will machines eventually replace humans? While AI might augment researchers, it won’t replace them.
While AI is adept at crunching large datasets, spotting patterns, and deriving insights, the human touch adds irreplaceable value. Researchers come equipped with domain knowledge, analytical thinking, and the capacity to provide nuanced interpretations beyond AI capabilities. They shape research inquiries, plan studies, ensure ethical considerations, and employ innovative problem-solving.
In the end, it’s the collaboration between AI and human researchers that holds the promise. Researchers can harness AI as a formidable ally to amplify their skills, corroborate their findings, and spark fresh research avenues.
As per SurveyMonkey, market researchers are embracing AI and handing over tasks that require precision.
Challenges and Considerations
While AI offers numerous advantages, it’s essential to approach it with a discerning eye. Here are some considerations.
- Data Quality- AI is only as good as its fed data. Ensuring data accuracy and relevance is paramount.
- Ethical Considerations- Using AI tools, especially those that monitor online behavior, raises ethical concerns. Businesses must ensure they’re compliant with privacy laws and use data responsibly.
- Continuous Learning- AI models, especially those based on Machine Learning (ML), require ongoing training to remain accurate and relevant.
Future Outlook of AI in Market Research
Reviewing the data underscores AI’s entrenched role in market research. Already, 61.4% of marketers incorporate AI into their strategies. The trend is poised for expansion, with 68% of marketers planning to employ AI for email marketing and another 63% for influencer campaigns.
The financial trajectory for AI in marketing is equally impressive. Estimated at $12.2 billion in 2022, its market value is projected to skyrocket to $77.4 billion by 2030, reflecting a substantial CAGR of 25.2%. The message is clear- AI’s role in market research is not just prevalent but set to intensify. Adopting AI now could widen the gap between enterprises and industry frontrunners.
Yet, the pinnacle of consumer insight merges human intelligence with AI-driven market research. While traditional methods, like social listening, hold value, the marriage of AI and automation in market research is indispensable, given the sheer magnitude of data in today’s digital age.
Connect with OnGraph for AI-powered Market Research Solutions
AI technology promises to be a game-changer for the market research sector. It brings many advantages, including enhancing research quality, delivering sharper insights, facilitating instant decision-making, and supporting predictive analytics. Through AI-enhanced tools, businesses can elevate the customer journey, boost efficiency, and cut costs. In the rapid tempo of today’s business landscape, embracing AI is crucial for companies aiming to maintain a competitive edge.
With OnGraph AI-powered solutions, you can drive your market research projects cost-efficiently, create innovative surveys to keep your customers engaged and avoid survey fraud with powerful fraud detection techniques integration, and create and manage multi-regional panels for fast turnaround and quick results.
If you are looking for AI-powered market research solutions to drive your research, connect with us today.
