Thursday, June 11, 2009

Market research is under threat of extinction


It’s now widely acknowledged that human behaviour is causing climate change. If we don’t stop polluting the earth’s sea, there’ll be no more fish in the sea. If we don’t stop polluting the atmosphere, we’re heading for drought and famine and many more parts of the world will be under water.

Similarly, the ecology of market research is under threat of extinction. In 2007, the Advertising Age in the US reported that 50% of respondents come from less than 5% of the population. And 0.25% of the population supplies more than 32% of responses to online surveys. Clearly, this will not give us a reliable basis to make important business decisions. There appears to be a dangerous slide taking place where market research is dependent on a small number of professional respondents. This means we’ll not have a representative sample that reflects reality. Why? Well as the Advertising Age article put it we’re in a Catch 22 – “No-one really knows whether people who don’t answer surveys are similar to those who do. Because they don’t answer surveys”.


There is an interesting dichotomy here. Many people are willing to share their opinions and views via blogs and online forums, but not so willing to take part in market research surveys. Let’s face it – market research doesn’t have a good name. Ask around what people think of market research and their unlikely to say that it’s about businesses understanding their customers better so they can provide better products and services. Many people just feel like their being played – some are asked to participate and then later get harassed by sales calls, some are called/emailed out of the blue without opting in to participate. Respondents give their views but nothing changes, like the bank still treats them harshly and charges an exorbitant fee when they go overdrawn a few dollars.


So how can we use the digital environment to enhance respondent engagement, and what measures can we take to ensure market research has a sustainable future?


Over recent years, there has been a shift from telephone to online surveys. This has been driven by a number of factors including reduced cost. Many online panels have been created. The better research operators recruit a good number of their panel offline to ensure the panel is representative of the population. They make it clear to their panellists that their details will not be passed on and will be used for market research purposes only. They make it clear that panellists will only take part in approx. 6 surveys a year, and are not paid per survey. Essentially, the better panels are compliant with ESOMAR guidelines.


Perhaps the main benefit of online panels is that it helps researchers to build a trusting relationship with respondents. A panel website with clear communication and the opportunity to feedback on surveys offers vital reassurance for respondents and enhances their engagement with the operator and the survey. Rather than a financial reward per completed survey which encourages professional respondents, entries into a prize draw should be considered or perhaps a non-financial reward.


A good panel should seek to establish a sense of community – panelists want a sense of belonging to something worthwhile and valued. They want to be part of the process in developing a user friendly and effective survey. Co-operation depends not just on the now, but how the respondent feels about previous surveys. If participants know that this is an ongoing communication, not just a one-off invitation to participate, then they are more likely to give of their best.


We also need to tailor our research approach to the needs of the specific audience to remove some of the obstacles of participation. There is an array of data collection interfaces available from SMS polls to blogs to asynchronous online discussions.


Mixed mode data collection may be appropriate, for example, where it is important to get a representation of the entire population and not just the research population. An online data collection method might be complemented by an offline method, combined with propensity weighting, which takes account of demographics, beliefs and attitudes.


The development of the web has triggered a social change where consumers are more informed, involved and connected. Marketing is no longer about one-way communication; we seek to engage with consumers and encourage a two-way dialogue with the brand. Research should reflect this too.
Rather than ‘respondents’ we should talk about ‘participants’, which suggests a two-way interaction.

We should look to be more creative in engaging with participants. One idea is to invite participants to an event and expose them to issues presented by speakers, video and props. This helps them understand the issues, set the agenda and participate in a more considered and engaged way.
Online blogs via the panel website can be used to encourage debate and discussion on a topic and to give our participants the opportunity to refine/define the topics from research. And we should look to make the survey interface a more interesting and enjoyable experience, not just in terms of closed questions with no visuals.

These measures will not be cheap or easy to implement in the short term, but by doing so, we will get better quality results and greater co-operation from the general public.