Why Generative AI Is Ushering in a Revolution in Consumer Insights
In these last few months, generative AI has been the hottest topic in the marketing world. Led by the crushing success of Chat GPT, countless companies implemented generative AI-powered software into their list of services in a bid to enter the AI race: this is ushering in a revolution in the way we, the end users, define business processes and productivity.
Think about it: are you a web developer and need to code? Chat GPT got you covered; want to crop videos into multiple viral TikTok snippets without the hassle of sifting through your own content? Check Opus; need to radically change one image without hours spent on labour-intensive design? Adobe Firefly comes to the rescue. Heck, I wrote this article using not one, not 2, but 4 AI-copywriting tools (Chat GPT, Notion, Copy AI, and Wordtune in case you are wondering)!
In short, AI-powered task automation and content creation are helping us work quicker, better, and more creatively than ever before. But how does generative AI behave in traditionally human-driven tasks, like qualitative consumer research? How can machine learning provide accurate and actionable insights when it needs to analyze human emotions and reactions? Let’s find out.
Qualitative Consumer Research: is it still a slog?
Let’s face it, qualitative consumer research is seen as painfully slow, complicated, and expensive. The traditional notion we have when thinking about this kind of research is that of a stuffy room, with one moderator and 6-10 participants commenting on a given ad or tagline. This would result in countless weeks of research, and by the time we get any insights, the market has already shifted, leaving us with a useless report and our marketing budget in the red.
The Dealbreaker: Speed of Insights
The key factor that makes or breaks any qualitative consumer research is speed. The faster you can get insights, the faster you can act and make an impact. However, speed often comes at the expense of lower quality and higher cost. This forced marketing teams of all sizes to limit the use of consumer research to a few critical projects.
How to solve this conundrum? Quick, inexpensive, and intuitive insights. And if there’s something that can deliver results fast and at a low cost, that’s generative AI.
Enter AI-Generated Insights
Now, you might be wondering, “Okay, AI can process data quickly, but can it really understand human emotions and reactions?” Well, hold on to your hats because it can do that and more.
AI-powered insights platforms can run advanced sentiment analysis capabilities using natural language processing (NLP) techniques to understand the feelings, tone, and emotions of online interviews.
But just like any other AI, the data set the model has been trained with is crucial. AI models trained with real qualitative studies can also recognize the context in data analysis, analyze videos to capture subtle emotions and sentiments, and create actionable insights.
This means that you can reliably count on AI to generate trustworthy, high-quality, and lightning-quick insights to boost your marketing work.
Where Human Intelligence Meets AI
At Sonar, we have spent the past four years building a proprietary Generative AI. The key to its success is a digitalised dataset of 100,000 qualitative studies that we have conducted in the past 10 years. Our data is proprietary, meaning that companies do not have to worry about open-source sharing of their data, which has proven to be a big discussion point for big enterprises when it comes to using AI.
In simple terms, we have built an AI that has learned to code and structure information and emotions provided in video interviews into actual answers to business questions. This means that when our platform has captured video of, for example, 15 participants delivering interviews based on a designed study for brand perception, our AI will turn these interviews into structured data and clear, actionable insights within minutes. This task would normally take hours upon hours of work by experts listening to and analyzing the data. Want to learn more? Book a demo here.
AI-generated Insights+Marketing = 8.5x Success Rate
“Fine, AI-generated insights are a thing. How can they help me become a better marketer?” According to Forrester, insights-driven businesses with advanced capabilities are 8.5 times more likely than their beginner counterparts to report annual revenue growth of 20% or more (24% vs. 3%).
The formula is simple in theory: the more insights you have, the more you get to know your customers, and the better, and more profitable, decisions you make. But how do AI-generated insights translate into real marketing impact?
1. Insights Spark/Influence/Validate Your Marketing Creativity
Qualitative consumer insights have the power to spark new ideas by uncovering unique perspectives that fuel innovative strategies and captivating campaigns. They can also influence existing marketing ideas, refining messaging and design as they are under development. Moreover, they validate marketing collateral, ensuring messaging is impactful and resonates with your target audience.
2. Insights Improve Speed and Agility
With a steady stream of insights coming your way, you can constantly check in with your consumers and understand their shifting pains, needs, and desires. This agility enables you to respond swiftly to changing market dynamics, adapt your strategies, and seize emerging opportunities, giving you a sustainable competitive edge.
3. Insights Reduce Costs
By understanding your consumers at a deep level, you can avoid costly mistakes such as launching products or campaigns that don’t resonate with your target audience. This translates into, laser-sharp marketing strategies, optimized marketing efforts, and better resource allocation, ultimately reducing unnecessary costs and maximizing your ROMI.
4. Insights Grow Revenue
By truly understanding their customers and their motivations, businesses can develop targeted marketing campaigns, personalized offerings, and compelling messaging that resonates with their target audience. This deep connection builds trust, drives customer loyalty, and ultimately leads to increased sales, higher customer lifetime value, and sustainable revenue growth.
Generative AI is revolutionizing consumer insights by providing faster, more valuable insights to marketers. It is crucial for businesses to recognize the transformative role of generative AI and adapt to this new era of consumer insights to stay competitive in the marketplace. By embracing AI-powered platforms and leveraging AI-generated insights, marketers can enhance their decision-making, drive revenue growth, and transform the success of their marketing endeavors. We happen to have a platform to do just that! If you are interested, you can book a demo below!