Artificial Intelligence

Impact Of AI In Market Research | How It Is Being Improved15 min read

Artificial-Intelligence-market-research

To understand the effect that artificial intelligence (AI) can have on market research. First, it is essential to be clear about what exactly is AI and what it is not. Artificial intelligence is the machine-displayed intellect, which is often distinguished by learning and adaptability. It is not quite the same as automation.

 

Automation is now commonly used for speeding up a variety of processes in the insights field. Automation is essentially the set of guidelines from recruitment to data collection and analysis that a computer follows to perform a function without human assistance. When complex logic and branching paths are introduced, differentiation from AI can be difficult. But, there is a significant difference. Except in the most complex of ways, software follows the instructions it has been given when a process is automated. Every time the cycle runs, the program (or machine) makes no decisions or learns something new.

 

Learning is what makes artificial intelligence stand out from automation. And this is what gives those who accept it the most significant opportunities.

Examples Of AI Today With AI Market Research Companies

There is already a range of ways in which artificial intelligence can provide researchers with knowledge and analysis that weren’t possible before. Of particular note is the ability to process massive, unstructured datasets.

Processing Open End Data In AI-Driven Market Research

Dubbed Big Qual, the method of applying methods of statistical analysis to large quantities of written data aims at distilling quantitative information.

 

The natural language API in Google Cloud offers an example of this in practice. The program recognizes “AI” as the most prominent entity in the paragraph (i.e., the most central one in the text). It can also know the category of text, syntactic structure, and provide insights into feelings. In this situation, there was a negative tone in the first and third sentences, while the second was more positive overall.

 

It can reduce the time it takes to evaluate qualitative responses from days to seconds when implemented on a large scale, particularly in the case of open-ended results.

How Artificial Intelligence Will Change The Future Of Marketing: Artificial Intelligence In Marketing Analytics?

Following is the way in which artificial intelligence change the future of marketing:

Proactive Community Management 

A second direction that artificial intelligence is being used in group management today can be observed. As every group manager can attest, participant disengagement is one of the most significant challenges to a long-lasting society. It can result in a high turnover rate, increased management effort, and outcomes of lower quality.

 

Luckily, AI-driven automated market research behavioral forecasts increased the chance of disengagement. Behavioral predictions include evaluating a vast array of group members’ data points such as several logins, pages viewed, the time between logins, etc. to construct user interaction profiles. 

 

When designed against disengaged members and measured, the AI can classify the members are at risk of disengagement. It allows community managers to provide these individuals with additional support and encouragement, thus reducing that risk.

facial-recognition

Machine Making Decisions

Give enough details to a computer, and it’ll be able to make a decision. And that’s precisely what Kia did over two years ago when the company used IBM’s Watson to help determine which influencers on social media would better endorse its Super Bowl commercial.

 

Using Natural Language Processing (NLP), Watson analyzed social media influencers’ vocabulary to recognize which characteristics Kia was searching for – openness to improvement, creative curiosity, and striving for achievement. Perhaps the most exciting thing about this example is that Watson ‘s decisions are those that would be difficult for a human to make, demonstrating the possibility that AI  for market insights might better understand us than we can.

Future Of AI In Market Research

Progress, of course, never ends. We are still very much in the absolute infancy of artificial intelligence. In the years to come, it is a technology that will have a much more significant effect on market research. Although there is no way to predict precisely what the result would be, the ideas outlined here are already being formulated – and that arrive sooner than we expect.

Virtual Market Research 

It’s expensive to hire. It can quickly eat away on a research budget, depending on the sample size and the length of a task. One proposed suggestion to further reduce this expense and extend insight budgets is to create a virtual panel of respondents based on a much smaller sample.

 

The idea is that sample sizes inherently restrict the ability of a company to consider every potential customer and client’s behavior. Hence, taking this sample, representing it as clusters of behavioral traits, and building a larger, more representative pool of virtual cluster respondents offers a more accurate behavior prediction.

 

This method has abundant limitations, such as the likelihood that in the first instance, the virtual respondents will be limited to binary responses. But this still has value – particularly when combined with the ability to run a large number of virtual experiments at once. It may be used to determine the most suitable price point for a product or to understand how sales could be affected by reaction to a change in product attributes.

Chatbots

As Paul Hudson, CEO of FlexMR, emphasized in a paper presented at Qual360 North America, a question still hangs over whether artificial intelligence could be used to gather on-scale qualitative conversational research. The research chatbots of today are restricted to pre-programmed questions, presented in a user interface typical of a conversation online.

 

However, as developments in AI continue to grow, so will these distribution methods for online questioning. The ultimate test would be whether such a tool could interpret responses from respondents in a way that allowed tailoring and sampling of interesting points following questions. It will signal the change from question delivery to virtual moderator format.

 

The resource is a natural limitation to desk investigation. While valuable, desk research can be time-consuming, meaning that insight does not always reach decision-makers’ hands before a decision is taken. 

 

Artificial intelligence can read, understand patterns, and detect trends much quicker than a human being, making this a possible technology application. The current barrier to this being adopted is the procurement of material for processing the AI. However, this barrier is increasingly eroding, as a growing amount of content is archived on public and private networks.

 

Unfortunately, given the broad reach of AI, it seems that much of the discussion surrounding artificial intelligence in market research today revolves around the coding issue and how technology could improve the analysis of qualitative data. While this is an important subject, there is a much broader range of applications AI might have within the insights industry. For insight professionals to make the most of this powerful technology, which is still very much in its infancy, it’s necessary to explore this broader range of applications thoroughly.

The rise of artificial intelligence ( AI) has fundamentally changed the way companies and brands perceive their target markets and interact. Nowhere is this truer than in the areas of management of expertise (XM) and ai-driven marketing studies.

 

In public discourse, AI and machine-learning can elicit divided opinions: for example, many support AI as a means of reducing repetitive and pointless work; others fear it for precisely the same reason, fearing AI coupled with robotics will replace human work.

 

But in the world of XM research, the scales are tipped massively in favor of AI. Indeed, our research on Qualtrics research shows that 93 percent of market analysts identify AI as an opportunity for the industry. As an indication of interest in the intersection of AI and market research, the US self-governing market research company Insights Association conducted a conference in June on how AI and other emerging technologies are changing the market.

Understanding What Customers Want

AI provides market researchers with access to tools such as robust automated text analysis that can analyze millions of comments in minutes, both voice and text, and emerge with a nuanced understanding of what customers are thinking and wanting.

 

Powerful algorithms can learn from the respondents, and ask the correct follow-up questions, micro-targeting the issues specific to the interests and needs of a single respondent.

 

AI can alter nearly all the factors that characterize current market research — and it already does. Before recent advances powered by AI, market research, apart from the small implementation of automation (think SurveyMonkey), was mostly immune to the digital revolution in the past decade or two. AI would radically change market research, addressing prices, scheduling, delivery, and application.

 

The use of algorithms and machine learning makes market research quicker and cheaper, reducing timelines for the project from weeks and months to hours and days. The move alone makes it possible to use market research outside big decisions; it is possible to apply AI-driven market research to everyday decisions with fast results.

Another revolutionary shift is the opportunity to use real-time data from several sources within market research initiatives. Now, it’s possible to incorporate up-to-the-minute data from sources such as sales, emails, social media, behavioral knowledge, and passive data, which can turn market research from a method of backward-looking analytics into a discipline of the future.

Market Research In Action

Organizations are now utilizing market research powered by AI in ways that demonstrate how the method improves data access and enhances tactical decision-making. Global telecom firms, for example, must spend billions in setting up 5 G technologies in the years ahead. They should have relied on market analysis in the past to tell them where to update the networks.

 

Telecom companies can exploit the large amount of data they have in-house through AI-driven market analysis, and apply additional real-time information to determine where network investments can deliver the highest return on their investment. That’s a big leap forward, and Fortune 500 telecommunications firms are now using AI and Machine Learning to ensure that strategic advantage.

 

Optimization of the supply chain is another use case for market research powered by AI. AI has changed the supply chain industry, but its use in the market analysis allows for genuinely future-oriented outcomes such as predictive supply chains that anticipate needs and optimize the supply chain before they materialize to meet demand.

AI Will Change Everything

In light of these trends, it’s an excellent time to explore how AI-driven market research can provide measurable effects for companies that have cut back on their market research activities (and those that have been priced out of the conventional market). First, the businesses that integrate AI-driven research into their operations will gain a sustainable edge, as AI becomes more intelligent over time.

 

Market analysis powered by AI is open as it doesn’t need an expert team to create a study and analyze findings. Users can go to a site and simply ask a business question. The capabilities of Natural Language Processing ( NLP) allow the AI solution to access the correct data and provide actionable feedback in language that can be understood by everyone, ensuring more customers can use market analysis through the industry.

How Will Artificial Intelligence Support In Making Better Marketing Decisions?

AI would democratize market research by broadening access and reducing demands on research skills. It will make market research more broadly available, expanding the use cases to inform tactical choices beyond strategic decisions. For all these reasons, and more, AI will change all about market research, and the most profit will be businesses that get in on the ground floor.

 

Over the past few years, the Martech sector has experienced significant growth, but the market research industry has been declining over the same time. Global sales dropped to $45.8 billion in 2017 from a high of $46.1 billion in 2014. Yet AI is poised to revitalize the operation of market research, and it will change all about how market analysis is being performed and used around the world.

 

To recognize the potential for AI’s disruptive impact on market research, the factors that led to the sector’s decline in its conventional form need to be understood. One explanation is that consumer perceptions have been the domain of market research. Nevertheless, the rise of big data as a business intelligence resource has significantly eroded that position within an organization.

 

Traditional market research projects are labor-intensive, costly, and time-consuming, and require advance knowledge about what information is needed to formulate business strategy. That’s why market research has been used almost exclusively to make high-stakes decisions on big-ticket products such as branding, product design, or pricing — it’s too costly and time consuming to apply for more granular decision making.

 

Another downside to current market research is that the produced data and insights are closely held by a small group and are not leveraged around the business. Typically, the findings are used once to answer a business question, and then consigned to the scrapheap. And while insight is the product that generates traditional market research, users are left alone to define the next steps.

How Is AI Transforming Digital Marketing?

AI is changing digital approaches with the ability to collect data, interpret it, apply it, and then learn from it. If it continues to evolve, so does the opportunity to use it to improve digital marketing campaigns and provide useful insights for companies.

 

Artificial intelligence is indicated as indispensable in future digital products, especially in the field of digital marketing. From the movie “The Matrix” to Google AI, from the funny and insightful Siri to Tesla’s self-driving vehicle, more and more companies are incorporating AI for their businesses in digital marketing. Artificial intelligence is transforming digital marketing into a reality.

 

Marketers had refused to apply artificial intelligence to their marketing campaigns in previous years. But now, it’s been embraced and used by many famous companies within their marketing, with brands like Amazon and Spotify currently using AI systems.

 

Amazon, for instance, uses AI to show shoppers only appropriate items based on past searches, transactions, and views. It will increase the probability of a shopper, making an initial purchase or being a repeat customer with the highly sought after personalized experience.

 

AI is revolutionizing digital marketing, with the ability to capture, evaluate, apply, and then respond to data. As the amount of information on potential customers increases, AI will become more relevant because of its ability to make fast and reliable data-based decisions. Here are several aspects that digital marketing is changing AI:

Recognize And Analyse

Customer Relationship Management ( CRM) refers to a business strategy that sets out a customer-centric market approach by optimizing customer information collection and filtering valid information.

As CRM, AI technology, and Big Data analytics are integrated, they can optimize the collection of user information from different channels, obtain accurate insights for target markets and recognize the needs of users so that companies can evaluate the most effective marketing plan.

data-analytics-challenges

AI Combines With AR/VR

When AI technology meets emerging visual innovations such as AR and VR, it brings with it a new experience of consumption.

 

Coca-Cola, for example, chose to merge AI and Augmented Reality ( AR) by overlaying computer graphics over a real-world view of a consumer using glasses or a helmet inside a variety of its bottling plants. It helps technicians to collect details about the equipment being serviced and helps them to assist technicians who can see their vision, making it easier for technicians to perform maintenance and diagnose issues in remote areas.

Email Marketing

AI allows brands to personalize consumer behavior-based email marketing campaigns, meaning marketers may send out emails that other behaviors cause. It helps them to send specific emails to the inboxes of consumers, choosing subject lines, product reviews, and feedback based on the actions of a customer.

 

AI also helps marketers optimize their email campaigns, allowing them to maximize their results, as well as better custom content. Marketers can use tools like Phrase to analyze and optimize campaigns dynamically quickly, rather than having to test various messages and designs A / B, which can take several weeks.

Marketing 

Thanks to AI, you can find out which content is most successful, based on the actions of targeted consumers, enabling you to use marketing content that works. Marketers may get a deeper understanding of what content forms function best for their target market, helping them to share or build the appropriate content form.

For example, 40 percent of millennials most trust video content, meaning it’s next to blogs the second most successful type of content marketing. It means a brand that targets this audience will be better able to create relevant content using AI insights.

 

Instead of making costly videos and other content types, AI-powered software will help you create those. Tools such as the FlexClip video creator, for example, allow you to design and import high-quality videos without the need for a designer or technical skills. It ensures you can do it quickly and effectively if the viewer data suggests you need to use videos.

 

AI can be used and developed, to curate content. YouTube’s recommendation feature, for example, offers recommendations for videos that may attract users based on their previous behavior.

 

Using a similar tool would allow you to introduce items, forums, videos, or other types of content that may be of interest to a website user based on how they communicate with your site.

 

Today, AI is more available to businesses, making it a powerful resource for digital marketers. It is irrefutable that AI affects the customers’ decisions in significant measure, helping to provide specific advice and timely customer support. Looking at how you can make use of it, you’ll be better able to develop your brand and meet your customers’ standards.

 


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