Business Challenge story
Studies show that up to 85 percent of new products introduced by consumer packaged goods companies fail. Because the development lifecycle of new products frequently lasts several years and can cost between USD50 million and USD100 million, it’s imperative for companies to design their products and engage with customers correctly. Previously, marketing companies used focus groups of 50 people or less to determine customer needs and shape new products. When 113 Industries launched in 2010, it recognized that its customers could accelerate the development and improve the performance of new products by including social media conversations in their consumer research. Until recently, however, cognitive technology wasn’t mature enough to gather, process, index and understand the enormous volumes of available social media data.
Using IBM Watson technology, including the IBM Watson Personality Insights service, 113 Industries is helping its customers listen to millions of social media conversations in real time, including text, image and video data. The new solution collects, indexes and analyzes this data to help companies determine consumer behaviors, attitudes, lifestyles and preferences at a massive scale. Using this information, companies can refine product designs and engage with customers more effectively.
By using IBM Watson technology, 113 Industries has helped its customers significantly expand the scope and improve the efficiency of their consumer research. The new solution enables customers to process and understand the psychology behind millions of consumer conversations. As a result, 113 Industries is able to help its customers understand what consumers want and how to engage them when they launch a product. The client reports that the new solution helps its customers test whether products are going to be successful at a large scale. In addition, the solution has enabled companies to launch new products in just three to six months. Finally, the Watson technology is providing its customers with a level of confidence in their new products that they’ve never had before.