This month's newsletter focuses upon the purchase of sample for market research initiatives.

Tip 1: Focus on Data Quality
Like never before, the quality of the data underlying any research initiative is of paramount importance to marketers and market research professionals. Given data is the foundation for the analysis and the ultimate business recommendations, the data must be projectable and of the highest quality.

When selecting a sample provider, you should consider the:

• Ability to accurately and efficiently target your desired audience -- from demographics to behaviors to attitudes and beyond
• Honesty of respondents (thoughtfulness of answers and time spent participating)
• Ability to identify and eliminate professional respondents and "straight-liners"
• Size of the panel or list (see Tip 2 below for related considerations)
• Training and skills of interviewers (telephone, in-person)
• Typical cooperation and completion rates
• Length of your own survey (let's not forget this one!)

Without selecting a firm able to provide quality data, you might as well randomly generate your answer set. Take some time and explore the processes and techniques employed to deliver quality results.

Tip 2: Ask About Recruitment Methods and Usage Rules
It's important to know how the panel or list was originally developed. Given strict privacy and contact laws, it's vital that the provider document the sources and processes used to create and maintain the panel. And if there is a large price differential between two suppliers, the rationale will likely be in the methods used to build and replenish the panel or list. You get what you pay for!

But your inquiry should not stop here. You should ask the:

• Number of times in a defined time period an individual is asked to pacticipate in research
• Use of category or other exclusions when selecting research candidates (to limit the influence any research initiative may have on a subsequent study)
• Average lifetime of a member
• Amount of information the company has on the member (and their household)
• Average number of studies and incentives provided over a year

Tip 3: Understand the Incentives Employed
Incentives often have a material impact upon your research, and not all incentives are created equal. For example, large financial incentives often drive improper behavior as some participants only seek to secure the reward. And the lack of incentives, particularly for long surveys, will virtually ensure a non-representative result.

For business to business audiences, information (a summary of the results, industry information) is often the best incentive. For consumers, $1 or $2 is often the best approach for surveys up to 20 questions or requiring less than 15 minutes. Recall, incentives are tokens of appreciation -- not compensation for time spent.

Tip 4: Don't Overlook Customer Service
Market research is not always blessed with flawless execution. Survey skip patterns misbehave; servers take sabbaticals; and clients ask for last-minute changes to in-the-field studies. Having a partner who is proven to be both available and able to address unforeseen issues is essential when studies jump the tracks.

You should consider documented testimonials revealing responsiveness, flexibility, transparency (a willingness to share what really happened), and the willingness to do whatever it takes to capture the completions you require. Importantly, do not overlook the importance of proactive monitoring of your project and the value of early alerts. The bacon you save could be your own!

Tip 5: Price is Important, but Not Everything
In today's market, it's often tempting to purchase sample from the lowest cost provider. After all, it's only data and the true value originates from your analysis -- right? Wrong.

We encourage all market research professionals to rank order bids or responses to RFPs using a balanced scorecard approach, applying weights to each of the four above areas. Then, set an explicit target price. If the price for your top-ranked supplier exceeds your target, pick up the phone and call your supplier. Express your desire to use them for the project and begin the negotiation process.

You may want to consider a smaller sample size or perhaps providing a case study. Of course, you should always explore the advantages of establishing long-term relationships and the discount often associated with such partnerships.

Should your negotiation prove to be unfruitful, begin the process with the second-ranked firm -- and so on. This should help ensure you are acquiring quality data at competitive prices. Remember, garbage in, garbage out.

Summary
Ask your colleagues. Consult current industry customer satisfaction reports. Initiate dialogues with vendors. Do your homework and your research results will be a shining reflection upon you.

 

Mike Carroll
800-872-5401
mcarroll@marketresearchcareers.com
www.marketresearchcareers.com