Despite marketers’ best efforts, trends can take them by surprise. Scrambling to play catch-up is an option. So is standing back and waiting to see if a particular trend fizzles out. These may seem like the only two ways to go, but there is a more proactive approach. It involves using tech to stay ahead of the curve.
As technology advances, the tools available to marketers are becoming more sophisticated at spotting micro and macro changes. In turn, it makes identifying trends easier, quicker, and more precise. Yes, data analytics and AI are the main drivers. However, augmented or virtual reality and social media monitoring are in there, too. Let’s explore how brands use these tools to spot trends early on.
Predictive Data
Data analytics has the power to do more than reveal the sources of your website traffic. It can turn into a tool to help your brand forecast how different segments of your audience are likely to behave. Data analytics also fine-tunes segmentation practices by identifying granular differences within broader audience segments.
It’s a tool known as predictive audiences, which leverages both historical and real-time information. With this data, your brand can predict who’s most likely to buy, churn, and spend the most. You can also zero in on which leads stand the highest chance of making their first purchase in the next seven days. The technology is that precise.
Foretelling how people are going to act is what it does best. This way, your brand can see trends emerging within larger and smaller groups. Maybe your broader audience is gravitating toward specific product lines. Simultaneously, you’ve identified a niche segment with an affinity for engaging on a brand-new social platform. Whatever emerges, you’ll be able to target your audiences with the right offer or message at the ideal moment.
AI Algorithms
The stats on the business world’s adoption of AI reflect a growing enthusiasm. Among companies of all sizes, 35% are using the technology in their operations. This percentage rises to 50% in larger businesses with over 5,000 employees. However, 25% of smaller firms are currently using AI in some fashion. Plus, 42% of companies are considering the technology for the future.
Undoubtedly, some of this use does or will involve forecasting market trends. If there’s one thing AI algorithms are good at, it’s processing vast amounts of data. AI can also outshine human analytical ability when it’s time to make sense of what all the info is saying.
Of course, companies can see what’s trending in their industries. Yet, algorithms also reveal macro and micro implications of various market forces. It’s not a secret some industries are interrelated, and sometimes niche markets come out of widespread variables. Industry examples include the links between renewable energy and car manufacturing. Plus, niche products like fluoride-free toothpaste wouldn’t be possible without a growing interest in natural health.
Virtual Reality
Augmented and virtual reality are becoming more integrated into customers’ experiences. They can try on clothes in virtual dressing rooms before they buy them. They have the option of seeing how a piece of furniture will look in their home when shopping online. Consumers are able to see how different hair colors will look on them before heading to the beauty salon. In some cases, they can virtually custom-design clothes and other products before they decide.
While virtual and augmented reality improves customer-brand interactions, the technology has other “behind-the-scenes” benefits. Companies see in real time how audiences interact with specific products. Virtual experiences are collecting data on consumer behaviors, helping identify potential trends.
Since the information is gathered in the moment, it can be more accurate than traditional market research. In addition, the data doesn’t omit what’s happening here and now. Conventional research reports might be months behind, but real-time data isn’t. It comes directly from the source without the guards people may put up during surveys or focus groups. Brands can pinpoint interests in specific designs, product lines, price points, and more.
Social Media Monitoring Tools
Social media monitoring technology tracks conversations across platforms. The results show what people are talking about, helping brands get a pulse on competitors and markets. Slightly over half of companies use social media monitoring in their marketing activities. Besides uncovering what people are saying about businesses and products, social media monitoring tools can reveal what’s trending.   Â
It could involve general topics like how inflation is shifting consumer spending. This data might help brands adjust pricing and communication strategies. Social media buzz could also showcase what’s happening with consumer sentiment. Say there’s a rising interest in international relocations amongst certain demographics. Social media chatter and content engagement show upcoming retirees are open to becoming ex-pats due to affordability concerns.
They’re not sure they can maintain their desired lifestyles in the U.S. once they’re not bringing home a paycheck. This trend could assist companies that specialize in international relocation identify which segments are ready to explore and then act. These brands can effectively target these audiences with relevant messaging and prepare internally for higher demand for their services.
Technology’s Role in Uncovering Trends
Naturally, trends come and go. Some are cyclical in nature, taking hold for a bit, disappearing, and then coming back. Others become a long-standing part of the societal landscape. But what doesn’t change is the fact that brands must decide whether to get on the bandwagon. Forecasting what’s up ahead gives companies the advantage of being proactive instead of reactive.
Technology, including predictive data analytics and social media monitoring tools, allows brands to get a head start. These devices provide real-time, behavioral information, which is the cream of the crop in terms of market research data. If you’re not already using these technologies, your brand may be at risk of falling behind.