Focus Groups With ChatGPT
Focus Groups are a staple of traditional marketing. When we have segmented the market and identified some segments to target, it's a good idea to bring some people belonging to those segments and ask them focused questions about their needs or the product/service idea we have. The problem is, it takes time and money to do this. What if we could just use AI to do this for us? I did an experiment segmenting the market of Miami Beach and then having a conversation with the focus group. Not bad for something that took me a few minutes!
Demographics
First I asked for the demographics of Miami Beach:
Population and Age Distribution
Total Population: Around 91,000 residents.
Age Distribution:
Children (Under 18): Approximately 13%
Young Adults (18-24): Around 7%
Adults (25-44): About 29%
Middle-Aged Adults (45-64): Approximately 30%
Seniors (65 and older): Roughly 21%
Racial and Ethnic Composition
Hispanic or Latino: Around 54% of the population.
Non-Hispanic White: About 36%.
Black or African American: Approximately 4%.
Asian: Roughly 2%.
Other Races: The remaining percentage is made up of mixed race and other racial groups.
Languages
Spanish: Predominantly spoken by about 57% of the population.
English: Spoken by around 35%.
Other Languages: Various languages making up the remaining percentage.
Socioeconomic Status
Median Household Income: Roughly $53,000.
Education:
High School Graduates: Approximately 85%
Bachelor's Degree or Higher: Around 44%
Household Composition
Single-Person Households: Quite common, making up a significant portion of households.
Families: Families with children are less common compared to other areas, but there is a notable presence of households with seniors.
Market Segments
Then I asked it to segment the market and give me the top segments by disposable income:
1. Affluent Retirees (Aged 65 and Older)
Income and Wealth: Many retirees in Miami Beach have substantial savings, pensions, and investments. They often have high disposable income.
Spending Habits: Focus on healthcare, luxury goods, dining, entertainment, real estate, and leisure activities.
Key Areas: South Beach, Mid-Beach.
2. Professionals and Executives (Aged 30-54)
Income and Wealth: High median household incomes, dual-income households, professionals in finance, tech, law, and other high-paying industries.
Spending Habits: High expenditure on real estate, luxury goods, dining, entertainment, fitness, and travel.
Key Areas: South of Fifth, Sunset Harbour, and West Avenue.
3. Young Urban Dwellers (Aged 25-34)
Income and Wealth: Typically have moderate to high incomes, especially those working in tech, finance, and creative industries.
Spending Habits: Spend on nightlife, dining, fashion, tech gadgets, and fitness.
Key Areas: South Beach, Mid-Beach, and Flamingo/Lummus.
4. Wealthy Foreign Investors and Expats
Income and Wealth: High net worth individuals, often investing in real estate and other assets in Miami Beach.
Spending Habits: Significant spending on luxury real estate, fine dining, high-end retail, and cultural activities.
Key Areas: South Beach, North Beach, and luxury waterfront properties.
5. Families with Children (Aged 35-50)
Income and Wealth: Generally high incomes, dual-earner households, professionals, and business owners.
Spending Habits: Spend on education, family-friendly entertainment, home improvement, and dining.
Key Areas: North Beach, Mid-Beach, and quieter residential areas.
Summary and Insights
Affluent Retirees are the top target due to their high disposable income and established wealth.
Professionals and Executives offer substantial spending power, particularly in sectors like real estate, luxury goods, and leisure.
Young Urban Dwellers present opportunities in nightlife, fashion, and tech, despite having slightly lower disposable income than the top two groups.
Wealthy Foreign Investors and Expats bring in high spending on luxury items and services, with a focus on real estate.
Families with Children are stable spenders, investing heavily in education and family-oriented activities.
Focus Group Personas
This is where the fun begins, I asked it to simulate a persona for the top 4 market segments so I could ask focus group questions to them.
1. Affluent Retiree: Charles "Charlie" Thompson
Age: 70
Background: A retired executive from a multinational corporation, Charlie moved to South Beach to enjoy his golden years. He has a substantial pension, savings, and investment portfolio.
Lifestyle: Enjoys fine dining, cultural events, golfing, and yachting. He is health-conscious and spends on premium healthcare services. Active in the local community and philanthropic endeavors.
Home: Owns a luxury condo with an ocean view in South Beach.
2. Professional: Lisa Hernandez
Age: 38
Background: A senior marketing manager for a tech company, Lisa is a high-earning professional with a dynamic career. She balances work with an active social life.
Lifestyle: Loves trendy restaurants, fitness classes, and boutique shopping. Enjoys networking events, art galleries, and the occasional weekend getaway. Health and wellness are important to her.
Home: Rents a modern apartment in the South of Fifth neighborhood.
3. Young Urban Dweller: Jake Williams
Age: 28
Background: A software developer working remotely for a startup based in Silicon Valley. Jake moved to South Beach for its vibrant atmosphere and beautiful weather.
Lifestyle: Enjoys nightlife, beach activities, and tech meetups. Passionate about startups, fashion, and digital innovation. Prefers experiences over material possessions.
Home: Shares a rental loft with friends in Mid-Beach.
4. Wealthy Foreign Investor: Elena Petrova
Age: 45
Background: An entrepreneur from Russia, Elena invests in luxury real estate and hospitality ventures. She frequently travels between Miami Beach and Europe.
Lifestyle: Spends on luxury goods, high-end dining, and exclusive events. Enjoys networking with other high-net-worth individuals and exploring investment opportunities. Values privacy and security.
Home: Owns a penthouse in a high-rise building in North Beach.
Focus Group Simulation
After setting up the characters, chatGPT started the focus group simulation
Moderator: "Welcome everyone! Let's start by sharing what you currently enjoy about living in South Beach and what you feel is missing or could be improved."
Charles "Charlie" Thompson
Charlie: "I love the cultural events and the community here. The beach is wonderful, and the healthcare services are top-notch. However, I'd like to see more senior-friendly activities and facilities. There's also a lack of upscale, quiet restaurants for a more relaxed dining experience. Sometimes, the nightlife and crowds can be a bit too much."
Lisa Hernandez
Lisa: "South Beach is fantastic for its vibrant social scene and fitness options. I appreciate the variety of restaurants and the art scene. But, I do think we could use more co-working spaces that cater to professionals like myself. Also, better public transportation would be a big plus, as it can be a hassle to get around sometimes."
Jake Williams
Jake: "The nightlife and beach activities are amazing. I love the energy here. However, it would be great to have more tech-focused events and innovation hubs. Also, affordable, high-quality fitness centers are something I think are lacking. It’s tough finding places that cater to younger professionals who are budget-conscious."
Elena Petrova
Elena: "South Beach offers the luxury and exclusivity I seek, but I agree with Charlie on the need for more private, high-end dining options. I also feel there should be more secure and exclusive networking events for investors. The privacy and security aspects could be improved as well, especially for high-net-worth individuals."
Question: Fitness Center vs Dining Hall
This is where I got to ask my question, what would they think of two of the things I think we are missing in Miami Beach, martial arts classes, and more food variety.
Me: What do each of you think of the following ideas:
A fitness center that includes different martial arts classes, dance classes, gymnastics, yoga, etc. all under the same roof. The basic idea is to have a gym that instead of specializing on weights or machines specializes on using the floor space effectively, with mats for cushioning falls or laying on the floor, bars on the side for ballet type exercises, etc.
A dining hall in the style of Malaysia's hawker stands, where you have a bunch of different cuisines under the same roof, trying to bring some of the cuisines South Beach doesn't have, like Ethiopian, Malaysian, Korean BBQ, etc.
Charles "Charlie" Thompson
Idea 1: Multi-Discipline Fitness Center "I think a fitness center that offers a variety of classes under one roof is an excellent idea. Even though I'm retired, I enjoy staying active, and having options like yoga and dance classes would be great. It would also be a fantastic way to meet new people and stay engaged with the community. However, it's important that the facility is accessible and comfortable for older adults as well."
Idea 2: Diverse Dining Hall "A dining hall with various cuisines sounds intriguing. I enjoy trying new foods, and having a place that offers different cuisines, especially ones not commonly found in South Beach, would be a wonderful addition. It would also be a great place to socialize and bring friends and family. I think it could be quite popular among both locals and tourists."
Lisa Hernandez
Idea 1: Multi-Discipline Fitness Center "I love the concept of a fitness center with diverse classes. It would fit perfectly into my lifestyle, allowing me to try different types of workouts in one place. The idea of using floor space effectively with mats and bars sounds innovative and appealing. It would be great for stress relief and maintaining a varied fitness routine."
Idea 2: Diverse Dining Hall "A dining hall featuring a range of international cuisines is an amazing idea. I love exploring different foods, and having a spot where I can try Ethiopian, Malaysian, and Korean BBQ would be fantastic. It would definitely add to the culinary diversity of South Beach and make dining out more exciting."
Jake Williams
Idea 1: Multi-Discipline Fitness Center "That sounds awesome! I love trying different forms of exercise, and having martial arts, dance, gymnastics, and yoga all in one place would be perfect. It’s a great way to keep workouts interesting and meet people with similar interests. Plus, the use of floor space with mats and bars for different activities is a smart idea."
Idea 2: Diverse Dining Hall "Yes, please! A dining hall with a mix of different cuisines is something South Beach definitely needs. I’m always up for trying new foods, and having options like Ethiopian and Malaysian under one roof would be epic. It’s also a great way to bring the community together over food."
Elena Petrova
Idea 1: Multi-Discipline Fitness Center "I think a fitness center offering a variety of classes is a wonderful idea. It would be convenient to have everything from yoga to martial arts in one place. The design with mats and bars is smart and would make the space versatile. It’s an appealing concept for someone who values health and wellness as much as I do."
Idea 2: Diverse Dining Hall "A dining hall with a variety of international cuisines is very appealing. It would add a unique touch to South Beach and attract food enthusiasts. I would love to have more dining options, especially cuisines that are hard to find here. It could become a popular spot for both locals and tourists looking for diverse dining experiences."
Me: Great it sounds like you all love those ideas, if you had to pick one or the other which one would you prefer? where would you spend more of your time and money?
Charles "Charlie" Thompson
Choice: Diverse Dining Hall
Reason: "I would prefer the diverse dining hall. While staying active is important to me, I find dining and socializing to be more enjoyable at this stage in my life. A place with a variety of cuisines would give me the opportunity to explore new foods and spend quality time with friends and family. I see myself spending more time and money there."
Lisa Hernandez
Choice: Multi-Discipline Fitness Center
Reason: "I would definitely choose the multi-discipline fitness center. It aligns perfectly with my active lifestyle and desire to try different types of workouts. I’d likely spend a lot of time there, integrating various classes into my routine. It would be a valuable investment in my health and wellness, and a great way to meet like-minded people."
Jake Williams
Choice: Multi-Discipline Fitness Center
Reason: "I’d go for the fitness center. Having access to different kinds of workouts all in one place is super appealing to me. I’d spend a lot of my time there, keeping my fitness routine varied and interesting. Plus, it’s a great way to stay active and social."
Elena Petrova
Choice: Diverse Dining Hall
Reason: "I would prefer the diverse dining hall. As much as I value fitness, I find unique dining experiences to be more appealing. I enjoy trying different cuisines and think it would be a wonderful addition to South Beach. I’d spend a significant amount of time and money there, indulging in new culinary experiences and entertaining guests."
Question: Web Application Ideas
Me: Now let's switch gears, if we were to build a digital or professional service, like a web application for you to find something or do something, or get something, what are some of the things you think are missing that would be useful to build? Now this is in the context of a software engineer trying to figure out what to build that you would find valuable.
Charles "Charlie" Thompson
Idea: Concierge Health and Wellness Platform
Description: "A web application that offers personalized health and wellness services tailored to seniors. This platform could include features like:
Personalized Health Plans: Tailored exercise, nutrition, and mental wellness programs.
Doctor and Specialist Finder: Easily locate and book appointments with healthcare providers.
Community and Social Events: Information on local events, classes, and social gatherings.
Telehealth Services: Access to virtual consultations with doctors and wellness experts.
Medication Management: Reminders and information about prescriptions and supplements.
This would help me maintain my health, stay socially active, and manage my medical needs efficiently."
Lisa Hernandez
Idea: Professional Networking and Co-Working Space Finder
Description: "An app that helps professionals like me find and book co-working spaces and professional networking events. Key features could include:
Co-Working Space Finder: Filter by amenities, location, price, and reviews.
Event Calendar: Local networking events, workshops, and conferences.
Booking and Reservations: Easy booking for co-working spaces and event tickets.
Virtual Networking: Connect with other professionals online, schedule virtual coffee meetings.
Professional Development: Access to online courses, webinars, and mentorship programs.
This would streamline my work life and help me grow my professional network."
Jake Williams
Idea: Social and Activity Hub
Description: "A platform that helps young professionals find social events, activities, and groups based on their interests. Features could include:
Event Listings: Comprehensive list of local events, from nightlife to tech meetups.
Activity Groups: Join or create groups for activities like hiking, gaming, or fitness.
Friend Finder: Connect with people who have similar interests and hobbies.
Discounts and Deals: Special offers for events, restaurants, and activities.
Itinerary Planner: Plan and share your weekend or vacation activities with friends.
This would help me stay engaged with the community and find fun activities."
Elena Petrova
Idea: Exclusive Luxury and Investment Network
Description: "A web application for high-net-worth individuals to find exclusive events, investment opportunities, and luxury services. Key features could include:
Exclusive Events: Listings of high-end social events, galas, and private gatherings.
Investment Opportunities: Access to curated investment deals, real estate listings, and venture capital opportunities.
Luxury Services: Concierge services for travel, dining, and lifestyle needs.
Networking: Connect with other high-net-worth individuals and business leaders.
Security and Privacy: Secure communication channels and privacy controls.
This would help me manage my investments and connect with others in my social circle."
My Takeaways
Those were pretty good ideas I hadn't really thought about. I think using personas instead of asking ChatGPT directly gave me a more nuanced answer. Of course I don't think this replaces an actual focus group, but it's a solid first pass and it definitely replaces just asking ChatGPT or just doing a web search.
This methodology can be used any time you want to explore an idea for a new product or a new market. It's not going to replace your marketing department, but it can give you some rough ideas of where to look.