Ever wondered how organizations come up with decisions?
Market research is one of the most important aspects of business strategy, providing valuable insights into consumer behavior, market trends, and competitive landscapes. As we look ahead to 2024 and beyond, several emerging trends are set to shape the market research landscape. From the integration of advanced technologies to the focus on sustainability and ethical practices, here are the top market research trends for the rest of 2024 and beyond that businesses should be aware of.
1. Integration of Artificial Intelligence
Artificial Intelligence enhances the efficiency of the Market Research process, allowing for a more nuanced understanding of consumer behavior. The global AI in market research market is expected to grow from $2.8 billion in 2024 to $6.1 billion by 2028., highlighting the significant role AI will play in the future.
Here are some ways AI is transforming market research:
- Chatbots and Virtual Assistants:
AI-powered chatbots can conduct surveys and gather real-time feedback from customers. This is particularly valuable for gathering in-the-moment sentiment on products or services. For example, Sephora uses an AI chatbot on Facebook Messenger to interact with customers, helping them find products and gather feedback.
- Automated Content Generation: AI can create personalized survey questions and generate reports, streamlining the research process and saving valuable time.
2. Real-time Research: The Game Changer
Traditionally, market research relied on static data collected over time. Nowadays, the need for immediate insights has grown, so real-time data collection is becoming a staple in market research. Tools that gather and analyze data instantly allow businesses to make faster, more informed decisions. This trend is particularly relevant in industries like retail and e-commerce, where consumer preferences can change rapidly. In 2024 & beyond, real-time data collection will become more sophisticated, integrating seamlessly with other business systems to provide comprehensive insights.
Real-time research methods include:
- Social Media Listening: Monitoring brand mentions, and online conversations allows researchers to gauge customer sentiment and identify emerging trends. For instance, Coca-Cola uses social media listening tools to monitor customer feedback and adjust its marketing strategies accordingly.
- Clickstream Analysis: Tracking user behavior on websites and apps provides valuable insights into user preferences and buying journeys. Amazon utilizes clickstream analysis to recommend products based on users’ browsing histories.
- A/B Testing: This technique allows for real-time testing of different marketing messages, landing pages, or product features to optimize for better results. Netflix frequently uses A/B testing to determine which artwork, trailers, and descriptions resonate most with viewers.
3. Rise of Augmented Reality (AR) and Virtual Reality (VR)
By integrating AR technologies into research methodologies, businesses can create immersive experiences for consumers, gather feedback on product prototypes, and simulate real-world scenarios to understand consumer responses in a more interactive manner. It will play a pivotal role in market research, particularly in the realm of consumer engagement and product testing.
Real-world examples:
- AR Product Demos: IKEA uses AR in its IKEA Place app, allowing customers to visualize furniture in their homes before purchasing.
- VR Focus Groups: Companies like Walmart have used VR to test store layouts and product placements, gathering feedback from participants in a simulated shopping environment.
4. The Growing Importance of Video Research
Recent research found that 93% of the market researchers and 90% of the consumers are using online/video focus groups more than they were three years ago. Consumers are now much more comfortable being on camera, which is the main reason behind this transition. Video is more interactive, more genuine, and provides unspoken data like body language, tone, and facial expressions.
Here’s how video research is making a mark:
- In-depth Interviews: Video conferencing platforms enable researchers to conduct in-depth interviews with participants from anywhere in the world, fostering a more natural and interactive dialogue. Me-Grow Meeting, an integrated online qualitative research product designed specifically for market researchers, offers wider applicability for video conferencing. This product gives researchers an edge with its advanced features, like Digital one-way mirror, Heat-mapping via eye-tracking along with Sentiment analysis.
- Ethnographic Research: Observing consumers interacting with products or services in their natural environment provides a deeper understanding of their needs and motivations.
P&G conducts video ethnographies to observe consumers using their products at home.
- User Experience (UX) Testing: Recording user interactions with websites or apps allows researchers to identify usability issues and improve the overall user experience. Companies like Google use video recordings to analyze how users interact with their services and identify areas for improvement.
5. Sustainable and Socially Responsible Research
Consumers are increasingly making purchasing decisions based on a company’s commitment to social responsibility and environmental sustainability.
Market research is adapting to reflect this shift. This involves reducing the environmental impact of research activities, incorporating sustainability metrics into data collection, and promoting socially responsible methods for engaging with diverse consumer segments.
Here’s how this trend is shaping the field:
- Sustainability Metrics: Companies are now incorporating metrics like environmental impact and ethical sourcing practices into their market research to understand consumer preferences regarding sustainability. Unilever, for instance, has committed to ensuring that all its agricultural raw materials are sustainably sourced by 2025 and uses market research to track progress and consumer perceptions.
- Social Impact Measurement: Businesses are measuring the social impact of their products and services, allowing them to demonstrate their commitment to positive change and attract socially conscious consumers.
These trends are transforming the market research industry by providing more accurate, timely, and personalized insights, enabling businesses to make better- informed decisions and drive growth. By embracing these innovations, companies can stay ahead of the competition and thrive in the ever-evolving market research landscape.