Revolutionizing Market Research Through AI

MX Bites / June 29, 2023

Market research is the process of discovering, collecting, and analyzing the viability of a product or service in a specific market. It helps you to identify your target market and evaluate their perception of your brand. It is from this inference that you gain insight into the necessary developments to be made about your product and service.

Market research is generally carried out through various methods such as product testing, interviews with customers, surveys, and more. Some companies also specialize in making this process possible. However, as the market places more demands on your services, and data at size becomes impossible to understand the above methods of carrying out market research begin to prove ineffective. Hence there’s a pressing need for you to explore the nuances of AI in carrying out this process.

How AI-Powered Market Research Works

Keeping track of customer perception of your brand is usually a very ambiguous process. As a result, many businesses navigate the procedure without the necessary efficiency. Instead of obtaining genuine consumer insights and making decisions based on them, they create assumptions and experience several failures along the way.

However, today’s business revolution demands an accurate insight into understanding customer’s perceptions of your brand. Making decisions based on assumptions or inaccurate inferences may be risky. Knowing how important it is to accurately discover and analyze customer perceptions about a brand and its behavior through their buyer’s journey, how is this achievable given the ambiguity of the process?

This process is effectively achieved through AI-powered market research. Since the human mind is too limited to comprehend millions of customer feedback and extract meaningful insights from them, AI tools have been developed to make the process achievable. In this article, we’ll demystify the concept of market research and how AI functions in making the process more effective.

How AI Revolutionizes Market Research

AI is the new icing on market research. It accurately captures customer opinions about a brand and analyzes them through common KPIs such as Customer Satisfaction (CSAT), Sentiment Analysis, and Net Promoter Score (NPS). It does this by leveraging the power of machine learning algorithms, natural language processing, and predictive analytics. The following expresses the ways through which AI works out market research.

1. 1. Data collection and analysis: Getting customer feedback progresses from taking surveys to collecting real-time feedback from social media and other platforms where customers expressively communicate their thoughts about a brand, product, or service. Though the feedback and comments are many and too ambiguous to process, AI can gather all the unstructured data, analyze them and extract valuable insights from them. It is from the insights gained that businesses are empowered to make better decisions and enhance growth.
   2. Data Storytelling: Data storytelling encompasses the process of collecting data, extracting insights from it, and using the insights to tell stories that are understandable and relatable. Due to the complexity of data and the inability of some important stakeholders in the business to read and understand data, data storytelling is used to reduce the complexity and make communication easier.

Importance of AI-powered Market Research

The market research sector is increasingly being transformed by artificial intelligence (AI). It helps organizations save time and money by automating and optimizing operations, while also getting deeper insights into their consumers and markets. The following highlights the importance of AI-powered market research:

1. 1. Efficiency: AI automates the process of data collection, data analysis, and reporting, which usually consumes the time and effort of researchers. With  AI, this process is faster and more efficient.
   2. Accuracy: By identifying patterns and trends in data that would be difficult or impossible for humans to notice, artificial intelligence (AI) can assist to increase the accuracy of market research. Businesses can then use the insights to make better decisions regarding their goods, services, and marketing tactics.
   3. Common barriers are easily surmounted: For very established companies with customers all over the world, it may be difficult for them to understand and analyze customer feedback due to the language barrier. However, using AI-powered market research software makes it possible to communicate with customers of different cultures and analyze their feedback.
   4. Cost Efficiency: By subscribing to AI-powered market research software, you are minimizing the cost of employing market researchers to carry out the process.

Conclusively, in today’s highly competitive corporate scene, the relevance of AI-powered market research is more pronounced. AI has transformed the way businesses collect, analyze, and use data to make informed decisions and remain ahead of the competition. It also helps organizations to unearth important insights, recognize emerging trends, and understand consumer preferences accurately.  Therefore, businesses need to embrace this revolution to gain a competitive edge.