Chat GPT, the Open AI’s latest offering, has made its way into the top tech talks, and it isn’t coming slow. Reaching millions of users in the first few days of its launch, Chat GPT raised a bar for all its competitors. Users from across the world have been utilizing it for all sorts of tasks. But the question remains- Can we use Chat GPT for market research? If yes, then how?
This article has everything that you need to know about using ChatGPT for Market Research..!
ChatGPT in Market Research
Market Research is a method of seeking data and information about customer preferences to make more informed decisions. Unlike the traditional research processes, Chat GPT brings in the exemplified conversational AI that aids the research activities with quick facts and numbers. Here’s how you can use ChatGPT for market research.
1. Puts NLP in Practice
Natural Language Processing or NLP is the ability of the computer to understand spoken and written human language, simply put. Chat GPT fairly accepts and processes NLP that helps researchers work on the data easily. Unlike complex codes in programming languages, it eliminates the need for manual data entry or cleaning. It gives an instant push to the market research process, providing great insights into customer preferences.
2. Automates Data Analysis
Free from the hassles of running codes, Chat GPT can work smoothly for data analysis with more accuracy than humans. It not only saves time but reduces the risk of human error. Researchers simply have to prepare a relevant prompt, and the AI chatbot furnishes the details in no time. This, if used sincerely, can serve huge benefits in market research.
3. Generate Virtual Assistants
ChatGPT is not limited to answering pre-research queries. It can also help develop chatbots and virtual assistants for market research. They can be personalized to gather customer data, analyze surveys and provide insights into customer behavior and preferences. Moreover, chatbots and virtual assistants can be integrated into systems according to the requirements and are cost-effective.
4. Predictive Modelling
When it comes to predictive analysis, Chat GPT can use time series forecasting or classification models in the marketing research process. It can analyze large chunks of data to let companies make more informed market decisions in the future. This way, the companies can stay a step ahead and updated with the current customer needs and preferences.
5. Efficient Processes
To enhance the customer experience, Chat GPT for research can save businesses time and resources by tackling multiple queries at a time. It allows for improving customer service by spending lesser time on a single query and directing the businesses to spend more time on priority tasks. Therefore, accuracy and efficiency can be achieved simultaneously.
How to Use Chat GPT in Market Research: An Example
We decided to test the viability of ChatGPT or GPT-4 for market research process by creating a hypothetical business example. Assuming a solopreneur looking to start an online organic beauty chain for teens, let’s explore the responses at each step of market research.
1. Establishing the Fundamentals of Business Data
Prompt: I want to start an online organic beauty line for teenagers (age group: 13-19 years) residing in London. I am looking for specific information about their demography, both residents and foreigners. Act as a marketing research assistant and furnish all the information about the teenagers residing in London.
Comments: Here, we can notice that Chat GPT was able to fetch the required facts and figures to give an overview of the beauty trends in the United Kingdom. Moreover, it added the TikTok influence to solidify the statement about teenagers being interested in beauty products. We guess it’s a great point to begin our business!
2. Identifying the Relevant Competitors
Prompt: Can you please name ten or more brands that target teenage skincare in the UK? Research and share the relevant D2C brands, big or small. Also, show details about their market share and their popularity amongst the target audience.
Comments: It is important to note that since we asked for the market share for small businesses in the beauty line, Chat GPT couldn’t fetch the data due to privacy reasons. However, it gave a good outline of our existing competitors, which otherwise would have been time-consuming research.
3. In-Depth Competitor Research
Prompt: Can you disseminate more information about the competitor brands? Share their website URL, Instagram handles, and some key details about their brand values.
Comments: A point worth noting here is that Chat GPT repeated the brand introductions, which may, at times, overwhelm the researchers, and they often lose patience. Nonetheless, the query would have been addressed better if we had framed it better. A brand value, however, can prove to be a strong point for our case!
4. Building Audience Persona
Prompt: Okay! Also, can you build an audience persona using the following information: Demographic information, Preferences, likes and dislikes, and psychographic information? You can be as detailed as you want.
Comments: It is as much crucial to know about your audience as it is to know about your competitors. Investigating what your target audience wants is a huge component of market research, and Chat GPT brings it to us in a blink of an eye. It provided a piece of detailed information which can be a great cue to improve our business idea.
5. Small but Big Details about Product Design
Prompt: What can I do to make my products stand out from competitors? What specific areas should I focus on in product differentiation?
Comments: We see Chat GPT can serve some beneficial product differentiation ideas to amp up the businesses. At least, it is smart enough to present some major points which can aid researchers in the further development of the product.
Key Takeaways
Chat GPT’s ability to understand and process NLP makes it a more convenient and time-saving choice for most researchers. The responses are not extraordinary but a good Kickstarter to the market research process. Our examples can be considered as a very basic overview of how the Chat GPT can be employed in market research and used to gain consumer insights. Now that you know how to proceed, HAPPY GPT-ing!
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ChatGPT for Market Research – FAQs
How can I optimize Chat GPT responses?
Well, the best way to receive optimized Chat GPT queries is to frame the prompts. You can have everything on your plate, but you still need to extend your hand to take the plate. As a human being with 10x more intelligence than the AI chatbot, it is on you to put your questions wisely. The more cogently and precisely you send queries, the more optimized answer you will receive through Chat GPT.
Will it be okay to rely on Chat GPT for market research?
An AI bot is a man-made offering that has been trained extensively to give out the best results. However, it would not be advisable to rely solely on Chat GPT. No matter how attractive it may look, it is bound to produce more errors. For excellent results, traditional practices must be coupled with AI. For example, you can fetch basic information or data using Chat GPT and later use credible resources (like papers, articles, reviews, etc.) to fuel your market research process.
What are some limitations of Chat GPT in market research?
One of the major pitfalls of Chat GPT is that it is trained on limited data. Since market dynamics change every minute, the AI bot may not be able to provide up-to-date information. As a researcher, you must be vigilant and updated about the latest developments in the market. Moreover, at times, Chat GPT may struggle to interpret the exact context of the query, which may result in an irrelevant response.
