Expert Mode from The Agile Brand Guide®

Expert Mode: Synthetic Research and the Future of Customer Understanding

This article was based on the interview with Mike Taylor, Founder & CEO of Ask Rally by Greg Kihlström, AI and MarTech keynote speaker for The Agile Brand with Greg Kihlström podcast. Listen to the original episode here:

Arguably among the most exciting developments in the area of marketing and customer experience is the rise of synthetic research, a novel approach to understanding audiences. By leveraging the power of AI, synthetic research allows marketers to simulate human behavior, glean insights at scale, and make better decisions, faster.  This isn’t just about replacing traditional market research; it’s about augmenting it and opening doors to entirely new possibilities. In a recent conversation with Mike Taylor, Founder and CEO of Ask Rally, a pioneering platform in the synthetic research space, we explored the nuances of this emerging field and its implications for the future of marketing.

While synthetic research is gaining traction, it’s natural for seasoned marketing leaders to approach it with a healthy dose of skepticism.  Many questions abound, particularly around the ability of synthetic personas to truly capture the complexity of human behavior.  Can AI ever fully grasp the nuances of niche audiences? How can we reconcile the inherent biases present in both human and artificial intelligence? As we’ll see, these are valid concerns, but they also represent opportunities for innovation and a deeper understanding of our customers.

Scaling Customer Understanding with Synthetic Personas

One of the most compelling aspects of synthetic research is its ability to generate insights at a scale previously unimaginable.  As Taylor explains, “You can use [synthetic research] to ask questions that you otherwise wouldn’t be able to ask that many people.” This isn’t just about cost savings, although that’s a significant benefit.  It’s about the ability to test countless variations of messaging, explore a wider range of product ideas, and gain a more comprehensive understanding of customer preferences.  Taylor highlights the practical application of this technology, noting that it allows marketers to “test every single ad that you run or explore 100 product ideas,” tasks that would be prohibitively expensive and time-consuming using traditional methods. This scalability allows for a level of granularity and experimentation that can significantly enhance marketing effectiveness.

Bridging the Gap Between Synthetic and Real-World Insights

While synthetic research offers undeniable advantages, it’s essential to acknowledge its limitations. Taylor is candid about the current state of the technology, stating that “out of the box with the state-of-the-art models today…it’s like 50%, 60% accurate or similar.”  However, he also points out that through calibration and optimization, accuracy can reach 70-80%. This underscores the importance of viewing synthetic research not as a replacement for real-world data, but as a complement to it.  Taylor emphasizes the synergistic relationship between the two, suggesting that synthetic research can “inform the parameters of the human study.”  By using AI to identify key areas of inquiry, marketers can design more targeted and efficient traditional research initiatives.

Navigating the Biases of Humans and Machines

The issue of bias is a critical consideration in any research endeavor, and synthetic research is no exception.  Interestingly, Taylor points out that in the field of AI, the challenge isn’t so much about removing bias, but about introducing it, albeit strategically. “We actually want to introduce [bias],” he says, “because we want our AIs to be biased in the same ways that humans are biased.” This is a crucial insight, as it highlights the need for synthetic personas to reflect the often-irrational behaviors of real-world consumers. By understanding and accounting for these biases, marketers can develop more effective strategies that resonate with their target audiences on a deeper level.  It’s a continuous process of refinement, where the goal is not to eliminate bias entirely, but to align it with the realities of human decision-making.

The Future of Customer Understanding

Synthetic research is not a panacea, but it represents a significant leap forward in our ability to understand and connect with customers. By embracing this technology, marketers can gain access to unprecedented levels of insight, scale their research efforts more efficiently, and ultimately make better decisions.  It’s not about replacing human intuition and expertise; it’s about empowering marketers with the tools they need to navigate an increasingly complex and data-driven landscape. As Taylor eloquently puts it, synthetic research offers access to “an incredibly predictive model that is, to some degree, a human brain simulator,” a powerful tool for any marketer seeking to understand their audience on a deeper level.

The future of marketing is undeniably intertwined with the continued development of AI and synthetic research.  While there will always be a need for real-world data and human interpretation, the ability to simulate human behavior at scale offers a transformative opportunity for marketers. By embracing this technology and acknowledging its limitations, we can unlock new levels of customer understanding and drive more meaningful engagement.  The future isn’t about choosing between human and artificial intelligence; it’s about finding the right balance between the two, leveraging the strengths of each to create more effective and impactful marketing strategies.

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