Lack of clarity is often due to one of the following:

1. Imprecision. The goals are documented and discussed at too high a level—and that vagueness leaves too much room for interpretation during the research design, analysis and reporting phases.

Example: A team agrees on an objective of creating a market segmentation model. Sounds good, right? Not really. There are many ways to do a segmentation model, and many initiatives that segmentation can support. Which ones are relevant? A better objective would be, “To develop a segmentation model that will support near-term sales strategy development,” or “To develop a segmentation model that will help us understand emerging customer opportunities.”  In the first example, the study would likely focus on purchase plans, budget/spend behaviors, brand preferences, and might be primarily quantitative. In the second, the study would likely include a rich discovery phase. Two segmentation studies, different true objectives, and different methods.

2. Unrealistic scope. If a project is defined with too many objectives, the scope becomes too broad to execute well.  In quantitative projects, this often is evidenced by a questionnaire that is so long and onerous, that the resulting data is weak.

In most cases the root cause of an unrealistic scope is conflicting agendas. Sure, everyone on the team may agree that they need to better understand customer needs, so they agree to do a project. But the team members may have their own spin on how they want to look at needs.

Here is an example. Without some discipline, a study about “customer needs” could easily end up with 5 or 6 objectives, such as:

1. Understand relevant product category needs
2. Understand customer service needs
3. Discover customer perceptions of how to address current needs
4. Measure potential value of addressing emerging needs (for pricing implications)
5. Identify which brands have permission to address different needs

Without an agreed upon, and small, set of precise objectives, your project is at serious risk. None of the objectives will be met with excellence. You won’t have enough data specific to any one objective in order to generate any clarity or insights. And chances are, none of the stakeholders will be particularly satisfied, nor will they be likely to have enough conviction about the results to take action. And that is the real disaster.

[Want help planning a market research project? Please check out the Research Rockstar on-site workshop offerings here: LINK]

So why is this happening? Unfortunately, not everyone deals well with change. Indeed, we all know from experience that change can be painful and scary.

For some researchers, the momentous changes occurring in the wonderful world of market research are troubling—especially because so many directly impact client-supplier dynamics. Old “rules” about who does what, when and how no longer apply. Of course it isn’t surprising that we are seeing a rise in in-house research. In-house researchers have access to more tools and skills than ever before. And at the same time, other shifts are reducing the role of traditional agency offerings. For some agency-side researchers, these are big, scary, uncomfortable kinds of change.

So to client side-researchers who may be appalled at some of the comments and sarcasm about DIY research, please know that most agency-side researchers do understand that there is a continuum of research quality that exists in both the client and agency sides of the research realm. Most suppliers are constructively looking at the changes taking place, seeking out new opportunities to evolve methods and business practices.

But if you do run into researchers who seem to have forgotten that all client and agency-side researchers are ultimately on the same team, feel free to send them this as a nudge in the right direction:

We see articles all of the time lamenting lack of innovation in market research (see just about any market research-related blog or LinkedIn discussion group). What I have observed is that many client-side market research managers are so swamped with project management that they have little time for the truly strategic work of planning for innovations. I believe we need to raise awareness among corporate executives that the market research department can only innovate if it has the time and resources to do more, much more, than manage projects. My article details my suggestions on how this can be made a reality; you may not agree with my suggestions, and I know many of you won’t, but it’s a start.

So why are market research departments heroes? Because they are on the front line, fighting the battle to do more—yet they are constrained by out of date “marching orders.”

Alert magazine does require MRA membership: Link to Article.

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I was thrilled to see responses to the idea from great tweeps like  @MDMktingSource  @conversition @MargaretRoller.

Could this crazy idea have legs?

One idea: Perhaps a volunteer committee of 6 experienced researchers would get together once a month or so (virtually, of course), to review and grade questionnaires? We could come up with an agreed upon system for the grading process. And if we are daring enough, post a best and worst list?

As Annie pointed out, “Perhaps a survey rating system would encourage the quality #MRX companies to say no to bad surveys?”

And I have to confess, a “wall of shame” does appeal to me.

What do you think? Is this worthwhile? Would it encourage good survey design? Could we get a sponsor for it?? Are there legal issues? Please add comments, ideas, and sponsor nominations in comments.

Thanks!

RFPs range widely in terms of their level of sophistication and complexity. If your need is for a simple project, do yourself a favor: keep your RFP simple. It will save you a lot of time when the proposals come back and you actually have to read them.

At minimum, a market research RFP states parameters and requests responses to the basics:

• Statement of objectives
• Target population (B2B, B2C), perhaps with quotas
• Statement of geographic scope
• Sample source: Are you providing it, or is the agency?
• Statement of preference for qualitative or quantitative methodologies, if any
• Deliverables required at project conclusion
• Timeline requirements
• Qualifications required

Consider the above list your minimum RFP content. Of course, you can add many more items, depending on your project’s goals. Here are some more examples of things you can request in an RFP:

• Please provide information about your firm’s relevant industry experience.
• Provide biographies for the key team members you would assign to this project.
• Describe your methodology recommendation and how it will address our objectives.
• Provide details of your quality assurance (QA) practices.
• How will you ensure sample qualifications?
• (For international studies) Please describe your experience collecting data in the target countries.
• Please list the critical success factors and risks you see for this project.
• Please describe the expected timeline for this project, including key milestones.
• Given our objectives, what screening criteria and quotas do you recommend?

Market Research RFP Resources

For more tips on how to write a great RFP: RFP eBook

Free members and VIP members can access actual RFP templates on their member access pages

For on-site help, check out our workshop offerings: workshops

Or check out the book, available in Amazon: Amazon Link

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Market Research Training

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[We offer classes on market segmentation, product concept testing and many more. Buy a single class, or sign up for an annual membership]

Great Keynote Speakers

Take a look at these speakers—what an amazing list!

• Stan Sthanunathan, VP Strategy and Global Insights, Coca Cola
• Daniel Marcu, VP Research, IFC/Sundance
• Lane Cardwell, CEO, Boston Market
• Joe Batista, Chief Creatologist, HP
• Julie Propper, Director of Advertising Analytics, ESPN
• Dave Norton, CMO, Harrahs
• Clare Hart, Former Executive Vice President, Dow Jones & Company

My Top Pick

There will be many great speakers, but I always particularly enjoy practical market research applications. That is why I am especially  eager for this session: Isabelle Helms and Morgan Richards from AutoTrader.com will be presenting, “Building a Cost-Effective, In-House Normative Concept Test Program.”

Interested in seeking user feedback before you launch a new idea on your site? Limited concept testing research budget?  Then join us for this innovative session as we share how AutoTrader.com developed the “Concept Lab”, an in-house research solution enabling researchers to test new and revised online concepts with site users in a cost-effective manner.

My Session

I am pleased to announce that I will be presenting with Michaela Mora, at one of the Advanced Learning Sessions: Market Segmentation & MaxDiff: A Practical Application.

“Have you ever used MaxDiff in a market segmentation project? If you are looking to add an option for designing segmentation studies, join us for an interactive session on MaxDiff for Market Segmentation.

This session will start with a brief introduction to MaxDiff, for those audience members who may not have used it before. We will then proceed to scenarios of using MaxDiff to support a market segmentation analysis, including an actual case study. This session includes an interactive exercise for audience participation. The session will also include practical success tips.”

Conference Details

Place: Atlanta , GA
Date: 9/26/2010 12:00 PM  – 9/29/2010 12:00 PM

Sign up: Register by 8/26/2010 11:00 PM  for early registration fee (Registration Info)

I hope to see you there!

Segmentation models vary from basic to complex, and the approaches to developing and applying them is a topic for an entire book itself. But here are three examples of the very real benefits a segmentation model delivers:

1. Plan product roadmaps. It’s a lot easier to craft a roadmap when you have internal agreement about the profiles—including needs and behaviors—of the most attractive customer segments. If decision makers share a common view of what the most attractive segments are, and their emerging needs, planning new products and product improvements becomes a far more time and resource efficient  process. Not to overlook the obvious benefit that customer-inspired product ideas are more likely to succeed.
2. Embrace niche marketing. Few companies can afford to compete with the big fish in the big pond. Instead, a segmentation model shows you how to be a big fish in a little pond—or several little ponds.  A segmentation project can be designed to identify, profile and select profitable niches.
3. Setting your budget. Why let a marketing budget be set by something arbitrary, such as percent of sales? A segmentation model can provide a more meaningful, analytical approach. Given the size of attractive segments, and objectives for each segment (awareness/preference/market share, etc.), a strategic budget aligned with actual goals can be built. When you take this approach for the first time, you will likely find yourself investing less in some marketing programs, and more in others.

These are just 3 examples—there are many more. Indeed, there are many ways that a segmentation model can help your organization make money and save money. That said, actually creating a segmentation model is fairly complex, and success requires a very thoughtful planning process. Before you start, I strongly urge you to get assistance from someone who has experience with these types of studies—either a  consultant or a market research agency.

For those interested in learning more about market segmentation, I have three offers for  you:

First, please check out my new white paper, “9 Ways Market Segmentation Improves Business Success.” GET WHITE PAPER

Second, check out the preview of the new, 53-minute online introduction to market segmentation, “Divide & Conquer: Practical Steps to Market Segmentation Success.” CLASS PREVIEW [Research Rockstar VIP members: please note that this class is currently available in the members’ area—just log-in, click, and view!]

Third, for those interested in on-site training, I now have a more in-depth, 2-hour version of the online class, which includes interactive exercises for teams planning to create a market segmentation model. For a class outline, email me at KKorostoff@ResearchRockstar.com. Thanks!

But working with any type of consulting agency requires some level of project management on your part.  There are many risks when conducting market research; know them to mitigate them.

There are several points in a market research project where you, as the client-side manager, need to be  particularly cautious. Here are two of the big ones:

1. Risk: Ignoring sample quality. If your project is one where the agency is providing sample sources, you need to know what sources and something about their quality.  Ask how many sources the agency intends to use, what they are, and their experience with each source’s quality. A professional agency will be able to give you a clear, credible response. If you get a vague, confusing response, beware.
2. Risk: Not previewing final deliverables.  Ah the big day! The research agency is sending a sharp, knowledgeable professional to present your findings. The mistake? Not looking at their presentation at least 3 or 4 business days ahead of time.  It is totally appropriate for you to have a chance to preview and approve the presentation.  Don’t do it and you risk these very real scenarios:

• The presentation includes some conclusions that your colleagues, as experts in their market, know can’t possibly be correct. There goes the entire project’s credibility, all because of 1 or 2 poor slides.
• The presentation uses language that you just know will antagonize people. I am not saying you hide bad results; I am saying that you know your company culture and know how to present “bad news” in a productive way.
• The slides contain obvious errors.  Alas, it happens. The agency was swamped with deadlines the week your report was due, and insufficient time was spent checking your slides.  I know a research director from a Fortune 500 firm who bumped into a presenter in the parking lot 30 minutes before an executive-presentation; the speaker was still creating slides in the rental car!

Want more tips? Please check out the book on Amazon, “How to Hire & Manage Market Research Agencies.” OR, access a free chapter here: FREE.

Cathy’s point, “Customer satisfaction surveys are for measuring, not intervening.”

And Jeffrey’s, “Follow up with every dissatisfied customer who takes a survey.”

To be frank, my opinion on this topic has changed in just the past year or two. Before then, I was an ardent believer that all research must by anonymous—no matter what. I felt that any direct follow-up would show research participants that their survey responses could result in unexpected communications—and even if “helpful”, this experience could still impact future willingness to participate in research.

But in the past couple of years, two things have happened:

• First, I have been working with many clients who need to show that market research is not an academic exercise. Who need to demonstrate that research can directly, immediately, have positive outcomes. Many client-side market researchers have to negotiate for budget with non-researchers, who often view such studies as nice, but not necessarily actionable. Imposing anonymity on customer feedback reduces the research’s potential for clear, measurable usefulness.
• Second, I have seen raw data from several studies where it was obvious that participants expected follow-up. Indeed, anyone who has done a customer satisfaction survey knows that open-ended questions will often return entries such as, “The last software upgrade didn’t work—can you please fix it?” or “I have called your customer service number twice and can’t reach a live human being!”  You can bet that if they take the time to type that into a survey and you don’t follow-up, the damage will be irreparable.

Anonymity in Market Research

Yes, most surveys should be anonymous. But customer satisfaction surveys are an exception. Make it clear at the beginning or end of the survey that respondents can opt out (or opt in, if you prefer) of follow-up. Provide a phone number, web site or email address that can be used for any questions about how responses will be used.  The reality is that most customers expect follow-up.

What do you think? Do you agree? Have a different perspective? Please add your comment here or call the blog comments line at 508.691.6004 ext 702.

Want to learn more about customer satisfaction research? Check out the Research Rockstar class here: ClassList.