So you are ready to conduct some market research? After months of your own research to understand whether you want to use a Voice of Customer (VoC) or Image and Awareness Study, you are finally ready to take the next steps. You understand the value that market research can add to your organization and you've heard about the amazing impacts of a customer survey from your former colleague.
You pitch the idea to your boss in Monday morning's staff meeting. Here you thought this was a slam dunk but she wants more information as she's not sold on the commitment quite yet.
Your boss wants to know the following:
- What is the cost?
- How long does it take?
- What kind of ROI can we expect?
- What are the steps involved?
- What do we get?
- How do we get started?
Lucky for you, we've got answers to all 6 of your bosses questions here.
With answers to these 6 questions, you'll ready to respond. Like a Boss.
Point 1: What is the Cost of Market Research?
Let's start here because this is always the most common question. If you are looking to get market research (or any outsourced service really) cost is always the major barrier. The cost of market research is truly dependent on your needs and objectives. A small Voice of Customer (VoC) survey is less expensive than 8 focus groups. An intercept survey project at an event is less expensive than an extensive 1,000 complete telephone survey project.
The key here is to work with a market research firm who is flexible and is willing to work on a cost-effective solution for you. The best market research option isn't always necessarily the most expensive. If the cost of the market research exceeds the budget, ask the market research company how the project can be restructured to fit the amount your boss has in mind.
Point 2: How Long Does Market Research Take?
Depending on the methodology, market research can move fairly quick. A short online survey administered to a panel or through social media can move lightning fast. Here is an example of a national Millennial survey our market research company in NY completed in less than 1 week.
Online and email surveys offer quick turnarounds. Phone survey and mail survey projects take much longer. Qualitative market research like focus groups and in-depth interviews (IDIs) can often take 4 to 6 weeks (or longer if there are 4+ groups or 12+ participants for interviews).
All market research can be accelerated if needed. It's important to share your expectations and timeline with a market research company. The firm can give you an accurate timeline estimation for your unique project.
Point 3: What is the Return on Investment (ROI) for Market Research?
The value of market research lies in the ability to improve marketing, optimize strategy, and reduce business risk by making wrong decisions. The ROI of market research is specific to each type of study. The ROI of creative testing is to ensure you choose the right advertising message and design. It ensures you stand the best chance of advertising success when you run the campaign.
The ROI of a feasibility study is to understand market demand and the potential success of a venture. A feasibility study might address a new product, new type of business, or identify the best-use for a plot of land.
The ROI for pricing market research using the Van Westendorp pricing model will help you find the optimal price point for your product or service. This market research will help you avoid mistakes with your pricing which could impact sales and margins.
Here is an example of how website market research had a 665% return for an e-commerce client. The project used user experience (UX) market research to make improvements to a website.
Point 4: What is the Process for Market Research?
Each market research company you work with will likely have a slight process variation. Here at our market research company in NY we have created a standardized and task-oriented process which makes the entire project more efficient. We move our clients from proposal to kickoff, workplan, setup and design, testing, fieldwork, analysis, and reporting.
Although this varies by qualitative and quantitative market research, this process employed is fairly similar from project to project. The workplan does an excellent job at laying out tasks, completion dates, and responsible parties.
Point 5: What do we get From the Market Research?
Market research is a very service oriented business. However, there are certain deliverables exchanged throughout the process (such as kickoff meeting agendas, workplan, survey document, interview guide, and the report).
The report is the ultimate deliverable of a market research project. The market research report typically includes an executive summary with themes, recommendations, an infographic, customer persona(s), and question-by-question results.
The real value of the market research report comes from the insights and action items recommended by the market research company. It's one skill to collect the data but a whole different one entirely to develop strategy based on the feedback.
Point 6: How Do We Get Started With Market Research?
All market research projects start with a quote, estimate, or proposal. Are you looking for a quote on your market research project? Use this handy checklist to make sure you include all of the details the market research company will need.
The proposal will include all of the details on the scope and process. Items like your objectives, approach, timeline, and a final cost. This is the first document you are likely to receive from a firm and one you should request as you evaluate your decision with your boss.
Here are the 7 components of a market research proposal.
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Contact Our Market Research Company in NY
Drive Research is a market research company in New York. We offer a wide range of market research services in not only New York State but across the country.
Questions? Contact us at [email protected] or call us at 315-303-2040.