Posted on: 16th, May 2024 | By: Sourav Ray and Arnab Datta Chaudhuri
When AI Understands Humans Better Than We Understand Ourselves
The world of consumer research is experiencing a transformative era powered by artificial intelligence (AI). While traditional methods like surveys, interviews, and focus groups remain relevant, today, AI is fundamentally altering the research process. So, grab your virtual goggles, and dive straight into how AI is upending market research as we know it.
Crunching Numbers at Warp Speed
Say goodbye to grappling with endless spreadsheets and welcome AI-powered magic! With machine learning doing the heavy lifting, we're crunching numbers faster than you can say "statistical significance." Predictive analytics? You bet! AI can sniff out trends from miles away, helping us predict what consumers will want before they even know it themselves. Take Amazon for instance – they know your style and can predict what you want, better than you do! We have already had fashion shows with AI-created designs. Gap, a major American apparel brand, is using AI to predict and leverage future trends in fashion. Even beverage brands are getting in on the action, leveraging AI-generated insights to create new flavors that hit the perfect spot with consumers.
Chatting it Up with Bots and BFFs
Who needs awkward focus groups when you've got AI-powered chatbots? Just ask Sephora. Their Virtual Artist chatbot uses AI to help customers try on makeup virtually, providing personalized recommendations based on skin tone and preferences. These virtual pals are chatting up a storm with consumers, getting the juicy details straight from the source. Plus, with natural language processing, we're decoding emojis and slang like never before. It's like having a million virtual BFFs giving us the inside scoop on what makes them tick.
Cracking the Code of Feelings
Now, here's where things get really interesting! AI isn't just great at understanding words; it's also becoming a pro at decoding emotions. Netflix, for example, analyses viewer reactions to different shows and movies using AI algorithms to recommend content tailored to individual preferences. Through advanced sentiment analysis and facial recognition technology, AI can read between the lines (and smiles) to uncover the true feelings behind consumer interactions. Whether it's analyzing social media posts or scanning facial expressions in video feedback, AI is peeling back the layers to reveal the true feelings behind every interaction. It's like having a therapist and a trend forecaster rolled into one.
Consumer Research without Consumers: Testing, Testing, 1, 2, 3
Picture this: a virtual world where AI-generated personas roam free, testing out products and campaigns with gusto. It's like The Sims meets market research, and it’s genius! We can experiment, iterate, and refine our strategies in minutes. Virtual high-fives all around! This is not some distant pipe-dream, this is happening now. Today we have AI-enabled research platforms where you can simply enter your research goal and target group description. AI does the rest – from creating virtual respondent personas, framing the questions, coming up with the responses, and even giving you a preliminary analysis. Just read that once more. This is consumer research without actually interviewing any real consumers. Yet it is much richer and enlightening than traditional interviews. The AI has digested what every single person in that cohort has ever done online and is able to report it to you in a structured way that meets your research goals. First-hand experience suggests that these results are broadly aligned with market realities. And the richness of the virtual profiles and their responses has surprised many seasoned professionals. These profiles can be as generic as "Males within the age group of 18-25, living in tier 2/3 cities, with high affinity for the latest technology." Or as specific as, "Rajesh Sharma, 25 years, MHI INR 2 Lakh; Lucknow; Relationship Manager at HDFC Bank; MBA in Finance from IMT Ghaziabad; Life Philosophy – Always be curious." And with AI, we can create as many profiles and conduct our research amongst as many respondents as needed. And remember, the current technology is a "first draft". It is only going to get better – faster & more accurate. The only question is, will it become an Oracle of the near future, where you simply need to ask the right questions and get insightful answers within seconds?
Qualitative? Quantitative? Both? Neither?
These emerging techniques enable us to optimize the research the way we want, by breaking out of traditional labels. The question, "Should we go for quantitative or qualitative research?" is no longer valid. Research with virtual users help us obtain rich, in-depth insights while also leveraging the robustness of large-scale data. Setting up robust qualitative research is labour-intensive and time-consuming. And it is difficult to generalize the findings. Quantitative research, while scalable & generalizable, usually lacks depth and the emotional aspect of decision-making gets short-changed. By combining detailed stories (qualitative data) with numbers (quantitative data), virtual consumer panels enable researchers, and anyone within the business, can get a clearer, less biased picture.
The Magic of AI-powered Planning
Planners are supposed to be the voice of the consumer. What happens to us when AI not only knows far more about the consumer but also has a holistic understanding of the implications? Albert Szent-Gyorgyi, a Nobel laureate, once commented, "Research is to see what everybody else has seen, and to think what nobody else has thought." Now, for the first time, we have a realistic chance to see and understand what everybody (at least everybody who is online) else has seen. All that remains for us to do is think what nobody else has thought.
In a nutshell, AI is shaking up the world of consumer research, and we're here for it! With AI by our side, we're unlocking insights, predicting trends, and crafting strategies that are as savvy as they are stylish. So, here's to the future of brand strategy – where the only limit is our imagination!