Transcript 2013 Market Research Industry Survey Summary Report Copyright 2013 Crux Research Inc.

2013 Market Research Industry Survey
Summary Report
Copyright 2013 Crux Research Inc. and Bridgemark Solutions, Inc.
The material contained in this publication is intended for public use, with proper attribution. Please refer to this
study as “2013 Crux Research/Bridgemark Solutions Market Research Industry Study” in all publications,
presentations, or releases of data from this report.
Additional information from this project (data set, open-ended responses, etc.) is available. Please send
inquiries to [email protected].
Crux Research, Inc.
One North Main Street
Honeoye Falls, New York 14472
585 624 9150
www.cruxresearch.com
Bridgemark Solutions
2604 Elmwood Avenue Suite 251 Rochester, New York 14618
585 413 0090
www.bridgemarksolutions.com
©2013, Crux Research, Inc. and Bridgemark Solutions Inc.
All rights reserved.
Contents
•
Study background and purpose
4
•
Methodology
5
•
Summary of response
6
•
Executive summary: key findings
7
•
Satisfaction with a career in market research
12
•
Effectiveness of market research spending
19
•
The client/supplier relationship
23
•
The research proposal
30
•
The research sales call
35
•
Issues facing the market research field
46
•
Respondent profile
50
2
Bridgemark Solutions
•
•
Bridgemark Solutions provides lead generation and
sales support solutions, specializing in the unique needs
of market research firms. We develop and schedule 1to-1 sales presentations (or, “leads”) for our clients that
allow them to introduce themselves and their companies
to new sales prospects — in any companies, anywhere
in the world. We help our clients market their services
faster, more effectively, and with considerably less
expense than an in-house team, employing best
practices developed over years of experience. Our lead
generation service is a sophisticated and affordable way
to grow your business and keep you regularly engaged
with new sales prospects.
Crux Research
•
Crux Research is a market research firm dedicated
to connecting decision makers with customers,
inspiring new thinking, and setting new standards
for customer service. We focus on delivering
insight with the power to drive change by building
on a solid understanding of your business and
culture.
•
Every important business decision faces a vital
point, a crux, when you select which path to take.
Our goal is to guide you to the right path by
providing you with the right information for the right
decisions.
We also provide highly-customized, 100% guaranteed
lists of sales contacts for you or your sales team to
pursue on your own.
Bridgemark Solutions
2604 Elmwood Avenue, Suite 251 Rochester, New York 14618
585 413 0090
www.bridgemarksolutions.com
Crux Research, Inc.
One North Main Street
Honeoye Falls, New York 14472
585 624 9150
www.cruxresearch.com
3
Study Background and Purpose
•
The MR industry is estimated as nearly a $10 billion industry in the US,* spent by thousands of
clients with hundreds of research suppliers. MR is a highly fragmented industry – with multi-million
dollar firms competing with boutiques and independent consultants.
•
Despite its reliance on sophisticated methods and analyses, the MR industry relies heavily on
relationships. While other industry polls have detailed spending and evolving research methods, this
is the first study to concentrate primarily on the professional relationships between clients and
suppliers.
•
The main purpose of this project is to provide data to suppliers and clients that allows them to view
these relationships from the other side. Many “parallel” questions were posed to both clients and
suppliers.
•
Our goal? Simply to put this information out to the industry in the hopes that it will facilitate improved
relationships and, in turn, more effective market research.
* According to the American Marketing Association,
more than $9.5 billion was spent within the U.S. for
marketing/ advertising/public opinion research services
in 2012 through U.S.-based, for-profit research firms.
4
Methodology
•
The questionnaire was developed by Crux Research and Bridgemark Solutions, and reviewed by a
number of clients and suppliers prior to fielding.
•
The survey was recruited to the Bridgemark Solutions MR database. This is an extensive database
with tens of thousands of individuals working in marketing and market research related fields. In
addition, the survey was promoted on LinkedIn and on key MR group pages on LinkedIn.
•
The result is a convenience sample. While not necessarily projectable to a wider population, the
sample does include a breadth of experience levels, industries, geographies, and job titles.
•
Data were collected by Crux Research, using the Confirmit research platform.
•
This study was conducted online in September 2013.
•
Password-protected email invitations were sent to prospective respondents from the email database.
The questionnaire was by invitation only and not publicly accessible.
•
Qualified respondents were current clients (decision makers for MR spending in their organization)
and suppliers (from all functions excluding administrative functions such as HR, accounting, office
management, etc.). Administrative employees were included if they also had other qualifying roles in
their organization.
•
Individual interviews averaged 14 minutes in length.
5
Summary of Response
•
290 respondents in total.
•
139 suppliers. Average tenure 24 years, 20 of which have been spent in market research.
–
53 principals or owners*
–
47 senior managers (President, Vice-President)
–
44 client services/project management
–
43 research analyst
–
21 methodology/sampling/statistician
–
12 programming/data processing
–
11 field services/data collection
–
6 administrative (HR, accounting, office management)
•
151 clients. Average tenure 21 years, 17.1 of which have been spent in market research.
•
44% of respondents were male; 56% were female. While 48% of the suppliers were female, 63% of
the clients were female.
* Respondents could choose more than one job function.
6
Executive Summary:
Key Findings
7
Key Findings
The 2013 Crux Research/Bridgemark Solutions Market Research Industry Survey was conducted to help better
understand the MR industry. While we conducted the project to help improve our own sales and client
management efforts, we realize the information we gathered is of value to many clients and suppliers. The study is
thus publicly available, and redistribution and comments on the study are welcome and encouraged.
In total, 290 researchers responded to the project – about half of whom were suppliers and half of whom were
clients. Respondents tended to be fairly senior level, and with broad backgrounds. For instance, 61% of the clients
who responded also have supplier-side experience. 36% of suppliers responding also have had client-side
experience. On average respondents had more than 18 years of market research experience, so while this
respondent base isn’t necessarily representative of the entire MR industry, it is made up of highly experienced
researchers.
The study showed that while market researchers are largely happy with their careers, suppliers are a bit more
satisfied with their jobs than clients. We feel this could be because our supplier respondents tended to be more
senior in their organizations than our client respondents. While suppliers were happier with their current employer
than clients were, clients were more likely to recommend a career in market research on the client-side than
suppliers were to recommend a career on the supplier-side. And, about two-thirds of suppliers and three-quarters
of clients would choose market research as a career if they had to do it all over again.
What are the good parts of working in market research? Respondents were likely to say the MR field offers an
opportunity for intellectual challenge and growth, and has excellent co-workers. Clients were more likely than
suppliers to cite items like work/life balance, job security, work hours, and pay/benefits. Suppliers were more likely
to cite items like employer flexibility and career trajectory.
8
Key Findings
Continued
We have all heard the saying that “half of advertising is wasted.” From this study, it appears that the analogous
statistic is “between a quarter and a third of MR spending is wasted.” While suppliers say that 24% of the money
clients spend with them is ineffective, clients feel that 32% of their spending is ineffective. In an industry of nearly
$10 billion in annual spending domestically, this is a considerable inefficiency. We feel that this question is an
important one to track in subsequent years, as it is a good measure of the effectiveness of our industry.
A primary objective of this project was to understand more about the relationships between suppliers and clients,
and to understand how they can be improved. First, we found that there are many relationships overall – the
average supplier works personally with 14 clients and the average client’s organization uses 10 suppliers.
Suppliers tend to be more sanguine about these relationships than clients. For example, clients feel that they will
be expanding the work they do with 41% of their clients in the coming year, but clients only expect to expand the
work they do with 22% of their suppliers. 68% of suppliers are highly satisfied with their client relationships, while
62% of clients are highly satisfied with their supplier relationships.
An open-ended question suggested that suppliers are searching for more respect and partnership from clients.
Clients, on the other hand, would like to see better listening and customer service attention from suppliers.
Suppliers would like to see clients raise the profile of research and insights within their organization. Clients would
like to see suppliers provide more distilled insight, and fewer detailed, “data heavy” analyses and presentations.
The top attributes of a “good client” from a supplier standpoint include having clear objectives, communicating
effectively, and having respect for the supplier.
9
Key Findings
Continued
The study indicates that overall, about half of research proposals are sole-sourced while the other half are bid out
to multiple suppliers. The smallest, boutique market research firms were most likely to say their proposals are solesourced. Suppliers are overly-optimistic when assessing their win-rate on competitive proposals – 58%. If all
competitive proposals went to just two suppliers, the industry win-rate would be 50%, and since many go to
multiple suppliers, our conclusion is that suppliers are often in competitive situations they don’t recognize.
It is challenging for a supplier to generate a new relationship with a client. Clients tell us that 4 out of 5 projects go
to suppliers they have previously worked with, and the new ones tend to go to suppliers that have a specific,
narrow expertise they are searching for.
We posed a question to both suppliers and clients seeking to understand the characteristics of a good research
proposal. We found that relative to client’s needs, suppliers tend to understate the importance of client service and
the background of individuals associated with the project. Conversely, suppliers tend to understate the importance
of delivering the proposal on time, having a “brand name” behind the study, and past client experiences.
Research sales calls are a necessary part of the business, but not something that clients or suppliers appear to
look forward to. Suppliers make an average of 3.3 calls per month, and clients accept an average of 2.8 sales calls
per month. Suppliers greatly overstate the effectiveness of these calls. While suppliers tell us that 40% of their
sales calls are extremely or very effective, clients tell us that just 4% of these sales calls are extremely or very
effective.
10
Key Findings
Continued
Suppliers tend to generate new work in a reactive fashion – by referral or by inbound leads and calls. Just 28% of
suppliers say that making sales calls is something they enjoy about their job. 60% say their sales efforts are
inconsistent.
Clients tell us that suppliers need to do their homework and understand their businesses and challenges before
making the call, and above all, to show them how the firm can uniquely address their needs. Having a point of
difference is important.
The MR field is constantly changing and adapting to new technologies and new preferences of respondents and
clients. This study indicates that research on mobile devices, social media monitoring, and successfully analyzing
“big data” are the key trends to watch. It appears that older methods such as telephone and mail research are on
the way out.
11
Satisfaction with a Career in Market Research
12
Suppliers are slightly more satisfied than clients with their jobs
How would you rate your overall satisfaction with your current job?
(Means shown – 0 to 10 scale)
Suppliers
Suppliers with <5 years experience in MR
Suppliers with 5-10 years experience in MR
7.5
6.7
7.1
Suppliers with 11+ years experience in MR
Clients
7.1
Clients with <5 years experience in MR
7.0
Clients with 5-10 years experience in MR
Clients with 11+ years experience in MR
Q200 All respondents (n= 290)
7.7
7.5
7.0
13
Suppliers satisfaction is lowest among those working in the largest firms;
Client satisfaction is lowest in organizations with the smallest MR budgets
How would you rate your overall satisfaction with your current job?
(Means shown – 0 to 10 scale)
Suppliers
7.5
Boutique (<$1 million)
7.9
Small ($1 - $10 million)
7.4
Mid-Sized ($10 - $50 million)
Large (>$50 million)
Clients
MR budget less than $500K
MR budget $500K - $1 million
MR budget $1 - $5 million
MR budget $5 - $10 million
MR budget >$10 million
Q200 All respondents (n= 290)
7.8
6.9
7.1
6.8
7.1
7.4
7.2
7.3
14
Clients are far more likely than suppliers to recommend a career
on their “side” of the business
But, not necessarily at their employer
Suppose you were talking to a young person who was thinking about their career choices.
How likely would you be to recommend…?
(% Extremely/Very Likely)
Suppliers
Your current employer
A career on the CLIENT side of
market research
A career on the SUPPLIER side
of market research
Q205/Q210/Q220 All respondents (n=290)
Clients
54%
48%
51%
Your current employer
42%
A career on the CLIENT side of
market research
A career on the SUPPLIER side
of market research
73%
40%
15
Many would choose a research career if they had to do it all over again
If you had to do it all over again,
how likely would you be to pursue a career in market research?
Suppliers
Not very
likely, 7%
Not likely at
all, 1%
Extremely
likely, 27%
Somewhat
likely, 24%
Not very
likely, 9%
Not likely at
all, 2%
Extremely
likely, 31%
Somewhat
likely, 17%
Very likely,
41%
Top 2 Box = 68%
Q220 All respondents (n=290)
Clients
Very likely,
42%
Top 2 Box = 73%
16
Reasons why some would NOT consider a MR career
Reasons why some would consider a MR career
Clients:
Clients:
•
Limited mobility to other areas of marketing or outside of
marketing. Market research professionals tend to stay in MR.
•
•
I have found it [research] very prescriptive with less room for
innovation in methods on the client side. The reliance is
completely on vendors (supplier side) for new approaches.
There is a lot of variety from day-to-day. There is a lot of
satisfaction in seeing the result of your work impacting the highlevel strategic decisions being made by your employer or client.
•
There's not enough money in it and people do not truly value
good research. You tend to be “siloed” if you do it well. Since
you have the skills, you keep getting it by default.
Everyday is a challenge. It is never boring! Each project is so
different, yet gives an opportunity to learn something new about
the business.
•
I have always been inquisitive, asking questions, pondering all
sides of understanding, traveling to learn more, hungry for
answers and more questions.
•
It's a very rewarding field for a naturally inquisitive person…
Market research is a good mix of both an art and a science, and
I enjoy the balance of the two.
•
•
Would prefer a career that was more family-friendly.
Suppliers:
•
Crunching numbers gets tiring after a while. I would have done
something I have more passion for.
•
How research suppliers are treated by clients.
•
•
In the past we worked directly with line business management.
Increasingly purchase decisions in our market are being
influenced by corporate procurement professionals. This is
leading to the perception that the service is a commodity.
I like the continuous learning that goes along with being a
supplier-side market researcher.
•
I like the variety that comes with the job, as well as learning
about various types of industries and businesses. I am by
nature an inquisitive person.
•
MR does not get much respect from senior management and
is among the first things to be cut when the economy gets bad.
•
•
Too much night work and travel.
I have a passion to understand people. Research allows for
insight into how people think and choose products they
do....fascinating!
•
Love consumer insights... digging for the insights, talking with
consumers, solving problems and telling consumers' stories.
Q222 Would not consider a MR career (n=27)
Q223 Would consider a MR career (n=204)
Suppliers:
17
Clients tend to rate items like work/life balance, job security, work hours,
and pay/benefits higher than suppliers do
Suppliers tend to rate employer flexibility and career trajectory higher than clients
How would you rate the following specific aspects of a career in market research?
(% Excellent Shown)
88%
Intellectual challenge/growth
89%
88%
Co-workers/colleagues
84%
72%
Employer flexibility
Career trajectory/opportunity for
advancement
66%
62%
44%
58%
Benefits
76%
58%
Job security
Pay (salary)
Work/life balance
Training/development
Work hours
Q225 All respondents (n=290)
64%
55%
64%
50%
57%
Suppliers
49%
Clients
53%
48%
60%
18
Effectiveness of Market Research Spending
19
Almost half of clients feel market research is given too little priority
in their organization
In your current organization, would you say that market research is given …?
Clients
Too much
priority, 1%
Too little
priority, 45%
About the
right
priority, 54%
Q300 Clients (n=151)
Clients from organizations that spend
less than $500K a year in research
were most likely to say that research is
given too little priority (55%).
20
Clients are less likely than suppliers to see research spending as effective
We would like to know how effective you consider research spending to be.
We consider research spending to be effective if it yields data and insights that result in
more effective decision making.
What % of all the money that your clients spend on research
with your firm would you estimate as being …?
What % of all the money that your spend on research would
you estimate as being …?
Suppliers
Clients
Ineffective,
24%
Ineffective,
32%
Effective,
68%
Effective,
76%
Q305 All respondents (n=290)
21
Suppliers: Reasons why spending is ineffective
•
•
[Clients] are limited in what they can really do to change the
company. Some of the things that really need to be done require
top level buy-in and the research team doesn't have that kind of
clout.
Because they sometimes just go through the motions and have
little intention of carrying out any recommendations. Lots of MR
happens in a political stew, and suffers the inevitable
consequences of that.
•
Because we are constantly understaffed, we aren't able to
accompany our research with personalized consultation and
explanation of the research.
•
For my company - I think some of the "content experts" that
advise our clients are not thoughtful enough about the client’s
research objectives so they can successfully design a good
survey.
•
•
Timelines are often ridiculous and people don't spend the right
amount of time up front in determining objectives, business
needs, or what they are going to do with the results (how they
are going to use them).
Tracking projects have a tendency to live past their shelf life. It
is so difficult for some of our clients to implement any type of
change due to time, culture, executive buy-in that it leads to
ineffective research at times.
Q310 25% or more of spending is ineffective (n=158)
Clients: Reasons why spending is ineffective
•
A lot of the time it is used to either a) check a box that research
was conducted or b) confirmation of a direction already chosen.
•
[Our] industry works on gut and instinct. Often senior
management rejects findings from studies outright if the learning
don't correspond with their gut evaluation.
•
The insights gained through research are often not fully acted
upon and that is where the disconnect occurs.
•
I think that sometimes objectives are improperly defined, or not
fully defined, so we end up not always getting the most useful
data at the end of the study.
•
Some of the studies become too routine and the findings are
easily predicted (we know what the results will be already).
•
We have to compromise value (correct methodology,
representative sample, etc.) on many occasions to meet
demanding deadlines and budget constraints, lack of
understanding of research at higher levels of organization.
•
Sometimes the research does not yield the results a key
stakeholder/executive wanted. Sometimes, these people decide
they know what's best, and proceed with their intended plan
despite what the results say.
22
The client/supplier relationship
23
Market research professionals juggle many supplier/client relationships
In the past year, how many clients have you
personally worked with?
(Medians Shown)
In the past year, how many different suppliers
has your organization used?
(Medians shown)
Suppliers
Clients
All suppliers
Boutiques
(<$1 million)
14
All clients
10
<$500K
Small firms
($1 - $10 million)
$500K - $1 million
17
$1 - $5 million
Mid-sized
($10 - $50 million)
10
4
6
8
20
$5 - $10 million
Large firms
(>$50 million)
20
15
Over $10 million
Q620 Suppliers (n=121)
Q520 Clients who make or have input into supplier selection decisions (n=150)
12
24
Suppliers are more likely to feel they will be expanding the work they do
with clients than vice-versa
Are you likely to expand or reduce the amount of
work you do with these clients in the coming year?
(Means shown)
How many of these suppliers do you expect to
expand or reduce the amount of work you give to?
(Means shown)
Clients
Suppliers
Reduce the
amount of
work, 17%
Expand the
amount of
work, 41%
Keep about
the same,
42%
Q625 Suppliers (n=121)
Q525 Clients who make or have input into supplier selection decisions (n=150)
Reduce the
amount of
work, 29%
Expand the
amount of
work, 22%
Keep about
the same,
49%
25
Suppliers and clients report being satisfied with their relationships
How satisfied or dissatisfied are you with the (market research suppliers
you have used/clients you have worked with) in the past year?
(Means shown)
Suppliers satisfaction
with clients
Clients satisfaction
with suppliers
Dissatisfied,
10%
Dissatisfied,
11%
Moderately
satisfied,
23%
Moderately
satisfied,
27%
Highly
satisfied,
68%
Q605 Suppliers (n=121)
Q505 Clients who make or have input into supplier selection decisions (n=150)
Highly
satisfied,
62%
26
What would you say is the best thing about the (clients/suppliers) you currently work with –
what makes you want to work with a client over and over?
Suppliers thoughts on clients
•
Being treated with respect. Having clients that realize our expertise
and don't question everything we do.
•
Clients who share their business problems with us, and who want to
collaborate together to find solutions to those problems. Clients
who want to participate in the solution, not just have it handed to
them.
•
Easy going clients that truly understand the issues we face with
recruitment, sampling, incentivization, tight timelines are the best
kind to work with.
•
Long standing relationships make clients a pleasure to work for. I
feel like a valuable part of their team rather than a servant.
•
Those good clients understand the data collection process. They
grasp why some questions don't work well, why some audiences
are hard to target, why telephone data collection can't be completed
in 3 days, why the focus groups can't happen tomorrow, why you
can't expect employed people to do focus groups during working
hours. These clients allow a dialogue and are open to suggestions.
•
•
Our best clients are not only smart, but they know how to best use
us as a partner. They know their business, and see that we bring a
broader perspective. We love working with clients that see us as
part of the team, and not just someone who is gathering their data.
Smart, considerate partners who understand the value you bring to
the table. Have realistic expectations about timing and deliverables.
Let you be part of the team and have access to key stakeholders,
allowing us to provide a fully integrated research solution.
Q610 Suppliers (n=121)
Q510 Clients who make or have input into supplier selection decisions (n=150)
Clients thoughts on suppliers
•
They listen to my needs and articulate solutions that reflect those.
They provide thought leadership in making the study more valuable
either in the up-front scoping discussion or in preparing findings and
recommendations.
•
Client service. I want a supplier that works to meet my needs but also
knows that I am a market researcher and can talk the talk. That
means communicating to me as though I am a peer, accepting my
input, and coming to me with new ideas.
•
Anyone can have a "method" that gets to something or another. And
all methods have their pros/cons. It's the PEOPLE that make
interactions.
•
Having a familiar relationship with those suppliers; when a supplier
takes the time to get to know me on a personal level that extends
beyond a few work emails here and there, I feel as though I've
developed a much stronger relationship with that individual.
•
They "get it" - understand our products, customers and once brought
up to speed, require very little hand holding or further direction. They
are cooperative and function as a true thought partner.
•
Proactive and creative thinking. The ability to write well and design
effective presentations that combine an understanding of the
business questions, interpret results and tell a relevant and
meaningful story that can be understood by non-research audiences.
•
I want a supplier who thinks and provides value add. I don't want an
order taker. I am looking for a team that has my interest at heart and
that doesn't try to cross sell me the latest and greatest new black box
tool.
27
What is there about your current (clients/suppliers) that you would like to see improved?
What would you change about your current (clients/suppliers) if you could?
Suppliers thoughts on clients
•
•
EVERY client needs to learn respect for research respondents.
Most surveys are boring, are long, are tedious. How "good" the
survey is will impact the data. And these people who answer the
questions, attend the focus groups, allow us to follow them on
social media deserve RESPECT. They give us their time and
their opinions.
I have one client who pays well, and pays fast, so I continue to
work for them, but there is a "master and servant" dynamic that I
don't like.
•
Reasonable deadlines. There is an emphasis on speed to the
detriment of some of the work we are asked to do.
•
There are individuals who need to trust themselves, and their
positions more. Client side researchers often think of themselves
in a tactical/service role, and they (and the results) are
marginalized because of it.
•
Conducting more research that answers important questions and
provides direction for their company. Less "nice-to-know"
research. Less research by committee with too many people
involved in key decisions at client end.
•
I'd eliminate corporate procurement from the relationship. Frankly
after getting beat up over price by a long term client I am less
likely to want to give them my best work. They can't have it both
ways.
•
When we do NOT get a project with a client… the courtesy of
letting us know we were not awarded the business, with a reason
why so that we can learn from it.
Q615 Suppliers (n=121)
Q515 Clients who make or have input into supplier selection decisions (n=150)
Clients thoughts on suppliers
•
Better presentations that stick with the audience. No need to have
100 slides or to show all the data when it's not needed. Answer
the business questions only, do not show unnecessary slides just
because the analysis was done.
•
I understand that they are in business as well, however the
research companies with whom I'm least satisfied have yet to ask
me the questions you are asking.
•
Many suppliers give you only what you ask for and never go the
next step. Some don't understand the business well enough to look
at research data and know if something is out of place or doesn't
make sense.
•
Most suppliers I have worked with over my career are more
reactive than proactive. I would like to see them use their
experience to anticipate possible roadblocks.
•
Market researchers are by nature too detailed. Folks have little
time to sit through it all. Give the sound bites; with details at the
back to support those sound bites.
•
Good project management is dead. No one knows how to design
truly great research. Vendors think data on Power Point slides is
analysis versus truly doing the analysis. They report data and don't
decipher it into the compelling insights, tell the story and take a
stand.
•
Some of the larger suppliers like to nickel and dime us If they
have to expend an extra hour on a project (beyond what was bid),
they try to charge us. Smaller vendors don't do that.
28
Suppliers feel that “good” clients are ones with clear objectives and that
communicate effectively throughout the project
We are interested in the characteristics that make for a “good client”
from your standpoint. How important are the following?
Critically Important
Client objectives are clear
Important
Does not matter
80%
The client communicates effectively with you
throughout project
19% 1%
72%
The client respects you and your expertise
65%
You are treated as a partner and not a supplier
65%
Your advice is listened to and considered
28%
0%
35%
0%
34%
2%
51%
47%
2%
The client can manage his/her internal clients
effectively
50%
50%
0%
The client is consistent with his/her feedback and
guidance
49%
The client provides constructive feedback on lost
proposals
Q635 Suppliers (n=121)
29%
You are paid on time
23%
The client understand the market research
techniques you are using
22%
You are able to develop a friendship with your
clients
48%
15%
3%
63%
8%
69%
7%
62%
56%
16%
29%
29
The research proposal
30
About half of MR proposals are sole-sourced
What percent of all the proposals you write are …?
(Means shown)
What percent of all the projects you commission are …?
(Means shown)
Clients
Suppliers
Sole
sourced,
47%
Bid to
multiple
suppliers,
53%
Sole
sourced,
51%
Bid to
multiple
suppliers,
49%
Boutique firms (revenue <$1 million)
were most likely to say their proposals
are sole-sourced (57%).
Q640 Suppliers (n=121)
Q540 Clients who make or have input into supplier selection decisions (n=150)
31
Suppliers say they “win” 58% of their proposals;
Clients say the winning proposal is the lowest price about half the time
What is your best estimate for your “win rate” on
proposals?
(Means = 58% of the time)
When you bid projects out to multiple suppliers,
what percent of the time is the winning supplier the
one with the lowest price?
(Means = 52% of the time)
Suppliers
Less than 25%
Clients
Never
6%
26%-50%
42%
Less than 25% of the time
3%
10%
26%-50% of the time
51%-75%
35%
76% to 99%
100%
53%
51%-75% of the time
17%
76% to 99% of the time
18%
18%
0%
Q645 Suppliers (n=121)
Q545 Bid at least some projects to multiple suppliers (n=141)
Always
0%
32
80% of projects go to suppliers with already established relationships
New suppliers are commissioned when client is looking for a specific expertise
In the coming year, what percentage of the projects
you commission will be with …?
(Means shown)
Clients
Which of the following are reasons why you expect
to work with suppliers you do not currently work
with in the coming year?
Clients
Suppliers
you do not
currently
work with,
20%
Looking for a supplier with
expertise in a particular
issue/methodology
77%
We like to cycle in new suppliers
to keep a fresh perspective
54%
Looking for a supplier with
expertise in your field/industry
Suppliers
you
currently
work with,
80%
Dissatisfaction with current
suppliers
Need to find lower costs
Some other reason
Q550 Clients who make or have input into supplier selection decisions (n=150)
Q555 Will work with new suppliers in coming year (n=136)
41%
24%
21%
9%
33
Suppliers and clients can have different views on what makes a good proposal
When you are proposing a new project to a client or prospective client,
how important are the following considerations?*
% saying criterion is “critical” shown
Suppliers
Clients
Gap
Stressing the level of customer service the client will receive
The experience level/academic background of the
individuals who will work on the project
Being located near the client
49%
72%
-23%
31%
39%
-8%
0%
4%
-4%
Having the methodological expertise needed
78%
81%
-3%
Having a technological advantage
17%
19%
-2%
Demonstrating that we can meet client deadlines
Displaying an understanding of the issues the client is
researching
Asking good questions at the proposal stage
58%
55%
3%
90%
87%
3%
65%
60%
5%
References/recommendations
23%
17%
6%
Having a competitive price
53%
42%
11%
Specializing in the client’s industry
Stressing work your organization has done with the client in
the past
Your past client base
Having a relationship with the specific individuals who will
manage the project
Having a “brand name” that the client can trust
40%
27%
13%
34%
20%
14%
25%
6%
19%
60%
28%
21%
26%
5%
21%
Delivering the proposal on time
62%
37%
25%
Q630 Suppliers (n=121)
Q535 Clients who make or have input into supplier selection decisions (n=150)
Items clients feel are
more important than
suppliers feel they are
Items suppliers and
clients agree on
Items suppliers feel are
more important than
client’s feel they are
* Question wording to suppliers is shown. An analogous question
was posed to suppliers with appropriate wording changes.
34
The research sales call
35
Most suppliers are “okay with” being responsible for sales and revenue
generation
Just 28% of suppliers have a dedicated sales staff
Which best describes your feeling
towards sales/revenue generation?
In your firm, who is responsible for sales
(bringing in revenue)?
Suppliers
It is
something I
dislike, 13%
Management
It is an
aspect of my
job I enjoy a
lot, 28%
76%
Senior level
project staff
35%
We have
dedicated sales
staff
It is
something I
am okay
with, 59%
Mid-level project
staff
28%
9%
Clients service/project staff (11%)
were least likely to say sales is an
aspect of their job they enjoy.
Q647/Q660 Suppliers responsible for generating revenue (n=121)
36
Referrals are the primary source of sales calls/meetings
When you think of calls/meetings you have had with potential clients in the past 6 months,
which of the following describe how these calls/meetings came about?
Suppliers
Referrals – existing clients referred you
to potential new clients
76%
Inbound telephone – potential clients
contacted your firm directly
49%
Outbound email – your firm actively contacted
potential clients by email
43%
Inbound web – potential clients contacted
your firm via the Internet
43%
Outbound telephone – your firm actively contacted
potential clients by phone
None of these
Q655 Suppliers responsible for generating revenue (n=102)
25%
4%
37
Suppliers feel that 40% of their sales calls are extremely or very effective
They make an average of 3.3 calls per month
In a typical month, how many sales calls/meetings
do you have with new potential clients?
(Mean = 3.3 calls per month)
From your standpoint as a supplier, how effective are the
sales calls you make with potential clients?
Suppliers
Suppliers
Zero, 16%
Four or
more, 27%
Not effective Extremely
Not very at all, 0%
effective, 8%
effective, 8%
Very
effective,
32%
One, 22%
Three, 12%
Somewhat
effective,
52%
Two, 24%
Q650 Suppliers responsible for generating revenue (n=121)
Q652 Suppliers who have at least one sales call per month (n=102)
38
Clients take an average of 2.8 sales calls per month from suppliers
In a typical month, how many sales calls/meetings
do you have with market research suppliers who are
seeking to do business with you for the first time?
(Means = 1.9 calls per month)
In a typical month, how many sales calls/meetings do you
have with market research suppliers who are seeking to
expand the amount of work they do with you?
(Means = 0.9 calls per month)
Clients
Four or
more, 21%
Clients
Four or
more, 4%
Three, 3%
Zero, 22%
Two, 15%
Zero, 45%
Three, 7%
Two, 19%
One, 31%
Q560/Q565 Clients who make or have input into supplier selection decisions (n=150)
One, 33%
39
Clients are likely to say that supplier sales calls are ineffective
Just 4% say sales calls are extremely or very effective
How effective are the sales calls you take from
research suppliers calling on you seeking to do
business with you?
In your view, what could suppliers do to make these
calls more effective?
(Open-ended question)
Clients
Not effective
at all, 18%
Clients
•
Before you show me the capabilities presentation, talk with me
about my business issues and tailor your presentation to how you
can help ME not what you can do.
•
Don't have sales people make the calls to generate leads. Have
the true knowledgeable person make the initial call.
•
90% of the sales calls I've taken in the past have been a waste of
my time, so I've basically stopped taking them.
•
Spend time telling me what you bring to the table and how that's
different. Otherwise you are one company in a sea of sameness.
•
Spend a little time with our web site, my LinkedIn page or
something that educates you. Trust me, I won't call you unless I
think you have something to offer. So please don't call me unless
you KNOW you have something to offer me.
Extremely
Very
effective, 0%effective, 4%
Somewhat
effective,
35%
Not very
effective,
43%
Q575 Clients who take one or more new business sales calls per month (n=115)
Q580 Clients who say sales calls are not very effective or not effective at all (n=70)
40
What advice would you give a market research supplier that is calling on you hoping for new business?
Clients
•
•
A quarterly check-in is more than enough... and that should be
by email. Phone calls never come at the right time and are
always a distracting bother. I should know who you are... and
will reach out when I need you. I shouldn't have to dig too
deeply to find a recent email from you when I need you.
Be able to provide meaningful points of differentiation. Provide a
compelling reason why we should use the supplier in question
vs. another supplier. We're very unlikely to use a new supplier
who is a "me-to" operation
•
Don't be "salesly"...tell we what you've got...why it's different be transparent.
•
Don't over-sell your capabilities, and don't promise to be able to
answer every possible research need. Your particular
methodology or organizational strengths are not the best
solution for every problem out there, so admit that. Honesty in
addressing my questions and letting me know when you can
(and can't) help.
•
I like personalized messages; that shows me that if the supplier
will take the time on the front end, he/she will also take his/her
time with me once we partner on a project.
Q570 Clients who take one or more new business sales calls per month (n=115)
•
I get 2 - 3 calls a week asking me for a 30 minute introduction
session; unless you can tell me what you have that differentiates
you from everyone else, I will not make the time to meet with you.
•
Show me what you do that is unique from the rest of the MR
suppliers. Cost is a major factor for me so be up front about your
prices.
•
Position yourself as an expert on something - ideally a
methodology that we need and use often. We have plenty of
custom research vendors that do the usual stuff and need a
reason to talk to you.
•
Many sadly run thru their capabilities as if they are on a quota of
# delivered per month, without much attention to precisely
working thru to determine what their approach is quite able to do
for me. Some make it seem as if it is my job to determine the fit
of their products, yet it is not. That's their job.
•
Educate me about what others are doing out there, new and
different ideas. Show me a beautiful presentation. Put a smart
person on the phone who knows a bit about my category or has
at least researched my company a little bit.
41
Most suppliers feel they are not making enough sales calls
Many describe their sales efforts as inconsistent
In your opinion, does your company conduct …?
Which best describes your firm’s efforts
to generate new revenue?
Suppliers
Suppliers
Too many
sales calls,
3%
About the
right amount
of sales
calls, 41%
Not enough
sales calls,
56%
Q665/Q670 Suppliers responsible for generating revenue (n=102)
Inconsistent - we
tend to respond
to opportunities
that come to us,
or sell when we
are in a slow
work period, 60%
Consistent - we
have an ongoing
process we
follow, 40%
42
Issues Facing the MR Field
43
What do you think will be the single biggest change to happen to market research over the next 10 years?
Suppliers
•
Clients
A move to everything being online. I think in-person focus
groups will slowly become non-existent and it will be up to
market researchers to find new innovative ways to engage
customers to give feedback.
•
Surveys will be more fun, smoother, and pop up in a natural
setting (when consumers are at retail, watching advertising, etc.).
•
Big Data will eat into traditional market research in big
corporations.
•
Big data vs. quant research, the world is over-surveyed so faith
in the results is dropping. We will move to more extremes -extreme quant (big data) and extreme qual (social media and
co-creation).
•
I think the biggest change is the incorporation of new methods combining data points from social media, transactional
databases, biometrics, and traditional research to develop a
better view into markets and customers.
•
DIY tools that allow people who don't know what they're doing to
do their own (bad, poorly conceived) market research.
•
Less reliance on quantitative custom studies. More focus on data
mining large data sets, coupled with qual findings to support.
•
Methodologically we need to migrate from the long form
structured questionnaire to a more broad data collection/
retention methodology that enables researchers to deliver
results based on multiple facets (data sources) and not have
each insight rely upon a single survey instrument. Surveys take
too long, and the public's patience has worn thin.
•
New and disruptive technologies that we can't yet anticipate. My
career is long enough to remember what it was like before
personal computers, and before the internet, and before wireless,
and before tablets and smart phones, and... what's next?
•
Shifting to mobile. How do we get clients to shift away from 20-30
minute questionnaires that ask everything and their kitchen sink
to only asking a handful of questions on their phone?
•
There will be more tools and methodologies available but in the
end there won't be massive changes as good researchers will
use the tools best suited to tell the story best.
•
•
More online, less in-person which is sad to me. I value speaking
to consumers and dislike how our industry is migrating more to
online.
The research industry is rapidly evolving, but many things are
staying the same. You hear about a ton of stuff, 'hot new things',
but some of them never really take off, or end up much less 'big'
than industry experts expected.
Q400 All respondents (n=290)
44
Mobile research, social media monitoring, and “big data” are seen as
technologies that hold the greatest promise
Which of the following techniques/technologies do you think hold the greatest promise
for market research over the next decade?
Items with 50%+ adoption shown
Will be widely adopted
Will be used a little
Using mobile devices to gather information from
respondents
Will not be used at all
86%
Social media monitoring
13% 1%
75%
Successfully analyzing “Big Data” that is available
24%
72%
27%
1%
1%
Tapping into social media for custom research purposes
67%
31%
2%
Using 'apps' for research
67%
29%
4%
Online market research communities
Using location tracking (GPS) features of devices to
gather information
Large, pre-recruited research panels
Q405 All respondents (n=290)
62%
59%
50%
36%
37%
45%
2%
5%
5%
45
Mail, telephone, QR codes, and eye tracking are not seen as holding promise
Which of the following techniques/technologies do you think hold the greatest promise
for market research over the next decade?
Items with <50% adoption shown
Will be widely adopted
Will be used a little
Online bulletin boards for qualitative research
47%
In-depth interviewing
45%
Conducting research using online intercepts, or “river
sampling”
44%
Prediction markets
2%
51%
5%
60%
3%
61%
27%
7%
67%
11%
6%
61%
Telephone research 3%
Mail surveys 2%
5%
53%
32%
Eye tracking
Q405 All respondents (n=290)
48%
37%
Traditional focus group research
QR codes
Will not be used at all
28%
60%
37%
37%
61%
46
Respondent Profile
47
The study reached both clients and suppliers
Supplier job titles tended to be senior
Do you currently work at …?
Which of the following describe your role(s)
at your organization? (Suppliers Only)
Multiple response question
Principal or owner
38%
Senior management
(President, Vice President)
A client of
market
research
services,
52%
A market
research
supplier,
48%
34%
Client service/
project management
32%
Research analyst
31%
Methodology/sampling/statistics
15%
Sales and marketing
Programming/data processing
Field services, data collection
Q100: All respondents (n=290)
Q105: Research suppliers (n= 139)
12%
9%
8%
Administrative
4%
Some other role
1%
48
The study reached a range of suppliers and clients, small to large
How would you best describe your firm?
Which best describes your organization’s annual
spending on primary market research?
Suppliers
Large ($50
million or
more), 13%
Clients
Boutique (less
than $1 million
in annual
revenue), 27%
Mid-sized ($10
million to $50
million), 18%
Less than
$500K, 30%
$5 Million $10 Million,
16%
Small ($1
million - $10
million), 42%
Q702 Suppliers (n=138)
Q703 Clients (n=148)
$11 Million
or More,
16%
$1 Million $5 Million,
18%
$500K - $1
Million, 21%
49
Overall, market research budgets are increasing slightly
Which best describes your expectations for your organization’s
market research budget over the coming year?
Clients
Will decrease by 15% or more
5%
Will decrease by 10%
8%
Will decrease by 5%
7%
This calculation would suggest that total
research spending will increase by 1.5%
in the coming year.
Will stay about the same
44%
Will increase by 5%
Will increase by 10%
Will increase by 15% or more
Q530 Clients (n=151)
17%
9%
11%
50
Most suppliers work primarily for clients and do both qual and quant studies
Does your firm conduct work for …?
Which best describes your firm?
Suppliers
Suppliers
Primarily
conduct
quantitative
research,
26%
Both, 24%
Other
research
companies,
1%
Client
organizations
(end users of
research),
76%
Q110/Q112 Research suppliers (n= 139)
Conduct
both, 65%
Primarily
conduct
qualitative
research,
9%
51
Suppliers and clients are highly educated
Clients are more likely to be female than suppliers
Are you …?
Which best describes the highest level of education you
have completed or the highest degree you have received?
Suppliers
Clients
Suppliers
Clients
68%
63%
52%
52%
48%
37%
36%
27%
3%
0%
Less than college College graduate
degree
Q705/Q710 All respondents (n=290)
9%
5%
Some graduate
work
Graduate degree
Male
Female
52
Suppliers surveyed have slightly more experience than clients
Many have experiences on both sides of the business
Across your entire working career,
how many years have you spent doing the following?
(Means shown)
81% of suppliers have been working in
MR for 10+ years and 51% have been
working in MR for 20+ years.
24.3
4.2
21.3
2.7
4.2
12.1
Years working in positions that don't
involve market research
Years working as a market research client
17.4
5.0
Suppliers
Clients
36% of suppliers have
client experience
61% of clients have
supplier experience
Q120 All respondents (n= 290)
81% of clients have been working in
MR for 10+ years and 38% have been
working in MR for 20+ years.
Years working as a market research
supplier/consultant
53
What topics or question areas should we include in next year’s study that we didn’t include in this year’s?
Suppliers
•
What keeps clients coming back for more -- what generates
repeat business?
•
What about competitive salary?
•
Ways of selling, positioning traditional market research in the
face of 'big data' and all the other technology driven
methodologies.
•
I'd be interested in some measure of how researcher's view
themselves, our image and self image is poor, propped up by
technology and pretending to be scientists.
•
The "prompt payment" questions do not capture the full extent
of payment problems. I'd like to see additional questions on the
time it takes clients to issue a PO once the project is approved.
We have clients that award us the project, but then take
anywhere from 10 to 30 days to approve the PO, and do not
allow us to invoice until we have a PO.
•
Some questions about professional learning opportunity - what
activities are most useful from a learning perspective?
Q720 All respondents (n=290)
Clients
•
Perhaps dig more into the relation between market research &
our internal clients: what works, what hasn't worked, frustrations
& successes and why.
•
Are researchers interested in moving out of research into other
areas of their organizations, or do they consider themselves
"career researchers"?
•
Cold calling and constant calls from agencies. Let the suppliers
know the frequency of cold call we receive and how irritating this
persistence is.
•
More about the state of the industry. As technology advances I
fear that certain elements of the industry could become phased
out. I'd love to hear more about this from my peers.
•
We are moving a lot of our primary market to internal resources,
rather than leveraging suppliers. You may want to ask about how
many other organization are building capabilities to do some of
the less complex work.
•
I want to see/learn what makes a 'bad corporate researcher' or
negatively impacts the supplier/client relationship. There should
be a true partnership and it seems like most of these surveys is
focused on assessing the vendor.
54