Embracing synthetic users for transformative market insights

WRITTEN BY:

Sid Vanchinathan

Founding Partner & NA Regional Managing Director

Innovation and marketing managers continually grapple with a critical question: How will our new product or service be received by the target audience? This uncertainty in predicting market reception has historically been a significant hurdle. Historically, companies have relied on traditional methods like focus groups or surveys to gauge consumer interest, often finding these methods time-consuming, costly, and sometimes, misleading. It’s in this challenging backdrop that Generative Artificial Intelligence (Gen-AI), particularly with Synthetic Users (SU), emerges as a revolutionary tool, poised to redefine how businesses accelerate innovation and refine their products.

What are synthetic users?

Synthetic Users, also known as Digital Twins, are AI-generated models that mimic real consumer behavior and preferences. Far from being just data points, they offer a groundbreaking approach to consumer research, complementing traditional research methods in scope and depth. These models simulate a wide array of consumer profiles, yielding insights into varied market segments and enabling businesses to understand market dynamics in unprecedented detail. Essentially, SUs act as virtual members of the development team, offering rapid, insightful feedback on initial hypotheses and product assumptions.

Generative AI Focus Group

Benefits of using synthetic users

1. Dynamic Market Adaptation: SU provide a cost-effective and dynamic solution to keep pace with evolving market trends. They validate consumer needs in real-time, fostering rapid product iterations that align closely with market demands. In sectors like Consumer Packaged Goods (CPG), this translates to enhanced consumer satisfaction and a stronger market presence.

2. Enhanced Concept Validation: The use of SU significantly boosts the likelihood of developing concepts and propositions that resonate with consumer expectations, ensuring products are market-ready.

3. Risk Mitigation: By integrating these AI models, companies can increase their chances of success while concurrently reducing failure risks, securing a more robust entry into the market.


“From a product development standpoint, it's like having another member of your team that you can get very quick feedback and validation on some early hypothesis and assumptions.”

SID VANCHINATHAN

Founding Partner & NA Regional Managing Director at propelland


How can I start using Synthetic Users?

The implementation of Synthetic Users involves leveraging custom-trained GPT models, developed using various consumer data sources:

Transcripts from Consumer Research: These provide direct, authentic insights into consumer behavior.

Forums and Social Listening: Online platforms are a treasure trove of real-time consumer opinions and trends.

Even though SU are not a replacement for doing actual consumer research with real consumers, SU can help get some of the early hypothesis assumptions in product development. The potential of SU in market research and opportunity identification is immense. As we continue to integrate AI more deeply into our business practices, these AI models will become increasingly sophisticated, offering even more accurate and nuanced insights into consumer behavior. This evolution will not only transform how we understand our markets but also how we respond to them, ensuring that our products and services are always in alignment with consumer needs and expectations.


At propelland, we stand at the forefront of this exciting frontier, ready to guide your company in harnessing the transformative power of Synthetic Users. Let us guide your company in harnessing the transformative power of Synthetic Users, and together, we can redefine the landscape of market insights and consumer understanding.