Global Consumer Insights: Navigating Cultural Intelligence in Market Research

MX Bites / December 7, 2023

Cultural intelligence is becoming a subject of importance in global businesses. Also, for companies seeking global relevance, cultural intelligence is an indispensable key that bridges the communication gap between companies and their customers of different cultures and languages. 

In market research, which involves sentiment analysis of customer feedback and comments, language and cultural background will be a huge barrier for companies that offer services to customers outside their coastal zone. However, the rise of artificial intelligence has taken off the barrier, enabling companies to freely interact with customers and carry out market research across different countries. This blog post aims to expand the concept of cultural intelligence and it’s importance to SMEs that are looking to increase their relevance on a global scale.

What is cultural intelligence?

Cultural intelligence, also known as cultural quotient (CQ), is a term used to describe the ability of a company to function in different cultural diversity and settings while also demonstrating awareness and cultural nuances. 

It entails the ability of a market researcher to understand and adapt to cultural differences in order to acquire accurate and meaningful insights from a broad audience. Cultural intelligence entails being aware of and appreciating cultural conventions, beliefs, communication styles, and socioeconomic elements that may influence customer reactions to products, services, or marketing methods. Businesses may modify their strategies, construct culturally sensitive marketing campaigns, and make informed decisions that resonate with varied customer groups on a worldwide scale by effectively employing cultural intelligence in market research.

How does AI bring about cultural intelligence in market research?

Nothing kills a business bond with customers as much as a language barrier. Hence, the rise of AI-based models, which take off the barrier by collecting customer data in different languages, analyzing the sentiments embedded in them, and processing them in a clear, understandable way. 

One of the greatest potencies of AI in market research is social media listening. The most accurate form of customer sentiment is gotten on social media, where customers can freely express what they feel about a brand, product, or service.

It’s complex when you try to listen to all your customers at once, and it’s even more complicated when they communicate in different languages. Since we understand the importance of social media comments, it is necessary to analyze the sentiments behind the texts that accompany them, so one can use them for product development and gain insights into business growth strategies. Also, in responding to customer comments, the trained AI models analyze the comments and give proper responses to the customer in their own language.

Apart from social media listening, AI helps in providing automated and personalised responses to customers based on their different cultural backgrounds and happenings. For example, using AI-based tools, you could send an email to all Indian customers on their independence day, crafting the message in such a way that aligns with their culture and systems. This brings them closer to the brand and creates a lasting, positive impression.

The importance of Cultural Intelligence in Market Research

In light of the above ways through which cultural intelligence can be achieved in market research, the following are the extents through which cultural intelligence can impact market research:

• It provides a deeper platform for deeper connections with customers. One of the deepest ways to connect with a person is when you understand their culture and speak to them in a language they understand. When applied to businesses, it increases their trust in the business and creates a lasting impression that could turn them into regular customers. Even more important to them is when they receive personalized messages about events that are important to their lives.

• It increases customer retention. Customers, though they know they’re many, still want you to deal with them as one. That way, they feel more important and are encouraged to stay. Therefore, with the use of trained AI models, companies can communicate with customers on a more personal level, fueling their commitment to the company and making them loyal customers.

• It provides credibility. Relating with customers based on their cultural uniqueness provided a sense of credibility for the company. It gives customers a sense of safety and assurance about their patronage. Aside from this, it increases a company’s reputation and can sporadically grow its customer base because they’ve proven to be capable of providing excellent services to customers across different countries and cultures.

Conclusion

As of today, no company should ignore the importance of cultural intelligence in building business on a global scale. Big businesses already understand this; however, SMEs and startups aiming to operate on a global scale should start putting up measures to develop AI-trained models that can be used to break communication barriers that exist between companies and customers. Companies with established cultural intelligence position themselves as world-class businesses capable of catering to the affairs of customers all over the world. Once this impression is given, the customer base increases sporadically. Hence, the impact of establishing cultural intelligence in business administration cannot be overstated.