Market research is the main tool for businesses to get information about potential and current customers, the competition, and the market. In recent years, new technology was introduced into the Market Research playing field – Artificial Intelligence (AI). Unlike traditional market research, AI market research accounts for the entire customer journey, from the first click to the satisfaction surveys. This is a major game changer.
This article will explain what Market Research, discuss the impact AI technology has had on it, and will show four ways Artificial Intelligence will transform Market Research in 2020.
What is Market Research
Market research is data driven evaluation of the potential of a new product or service, or understand what changes can be done to make a brand more attractive. This research allows businesses to identify their target audience, collect market information and analyze customer insights. Moreover, the data helps overcome potential marketing challenges, and is the base for marketing strategies that improve brand innovation and success.
Market research is often conducted in two steps:
- Primary Research – This initial data collection is a combination of qualitative and quantitative research. businesses reach out to their consumers through surveys and questionnaires. The research can collect either exploratory or specific information.
- Exploratory research uses an interview format with open ended questions, usually with a sample group.
- Specific Research is more focused and the aim is to solve problems identified in exploratory research.
- Secondary Research – This research uses data organized by an outside source such as government agencies and the media. This information is collected from reports, studies, newspapers, and other publications.
Why is Market Research important For Business?
According to Forbes, doing quality research before launching a new product or service provides you with information needed to make data driven decisions. The data informs pricing, branding, marketing design and potential brand innovation. It will also allow you to know if the new product or service is sought after by consumers.
Identify potential consumer markets and industry gaps
Quality market research will also help you identify potential consumer markets. it’ll become clear who your target customers are, what are the best marketing channels to reach said audience.
Stay in touch with your customers
Market research keeps businesses connected with their customers.
Using surveys and questionnaires, brand can obtain consumer insights that provide valuable knowledge of consumer desires, needs, and motivations. This way a brand can improve customer experience and increases sales.
How to conduct Market Research
Identifying current and potential consumer markets is the first step of primary market research. After finding the wider market, it is important to divide customers into smaller groups based on shared characteristics (similar needs, interests, lifestyles or demographic profiles).
After identifying the consumer market, there are three main research methods:
- Online Customer Surveys – Polls and surveys have become the most popular tool to gauge customer attitude. Surveys provide insights on customer experience with a product or service.
- Social Media Listening – Monitoring and analyzing Social media provides valuable Social Sentiment – customer satisfaction or critique of a brand.
- Focus Groups – One of the most traditional ways of conducting market research, focus groups are formed of 6-10 diverse individuals. They are asked a few questions about new services, possible product launches or innovations, marketing ideas, and more.
The information extracted helps to better understand what customers are missing in the current market, and aggregate customer sentiment.
How Artificial Intelligence will transform Market Research?
So, we know Market Research is great. But let’s talk about how AI will make it even better in 2020:
Faster Research Delivery
Market research needs to be done ASAP in order to maintain relevance. Delay in delivery often results in outdated insights and inaccurate sentiment analysis.
Most of a market researcher’s time is spent writing reports. And It takes time. A lot of time. This results in delayed delivery, and often outdated data. AI-based market research delivers results in near real time. The AI technology collects the data form a selected target audience, automatically monitor and scan keywords or topics. And it does it all a lot faster than a human would.
More Flexible Solutions
For the Research to be effective and provide quality information, the data collection tool has to be designed with the target audience in mind. For example, Customer Satisfaction Surveys that aren’t user friendly often cause low response rates that alter scoring or provide inaccurate information.
AI technology makes surveys more interactive and pliable by using customer’s answers. Computer learning technology allows for a more dynamic analysis, and helps modify the existing tools to better suit the customers.
Improve CX Quality
The research has to provide highly granular analysis for marketing campaign design and resource allocation. One of the biggest risks to research integrity is human-error or bias. For example, leading survey questions that will skew the data, and provide misleading analysis. Inaccurate data analysis results in unsuccessful marketing and lost sales.
AI enhances traditional CX analysis methods. Research results are provided quickly, accurately and free of any human-errors or biases. The end product is a rapid, highly granular, spot on market research.
Accurate Text Analysis
It is impossible to keep up with all the emails, open-ended survey responses, social media comments and call logs.
AI powered algorithms dive into those millions of words, perform quality text analysis, and provide insight into what customers are thinking, feeling and looking for in the current market. Using both Natural Language Processing (NLP) and Sentiment Analysis, AI technology runs through thousands of text comments, reviews and survey answers, and provides real-time quality analysis.
Revuze developed the first self-training, low touch AI technology that collects and analyzes customer feedback automatically and serve back valuable consumer insights. The data is independently scanned and analyzed by self learning algorithms.
The end result is highly granular Market Research that informes data-driven marketing design and resource allocation, improving sales and earnings.