How to choose a market research company?

When you are about to initiate a market research campaign, it is not easy to select a service provider. There are multiple service providers offering the same set of service. So, how do you choose one? I have created a 8 point checklist, that can help to narrow down on the best option for you. Based upon the research that I did, I found that the points mentioned in an ESOMAR guideline were the most relevant.

If the organization has scored more than 7 then you can give it a shot. However, we need to analyze every aspect of the checklist so that we are not missing a point. Anything beyond 8 is great. 

1.) How long has it been in business

Market research companies work on diverse segments. They do different types of researches such as qualitative, extensive quantitative or both. Some companies are purely a business research company that work on equity analysis, company profiles etc.

In today’s business environment, the longevity of a company can be a misplaced parameter to judge. A company in business for a longer time may be using a legacy method to do work while a new company can use new Ai based tools to do better research. More on that in later sections! However, any company to show stability and prove its business model takes anything between 7-10 years. So the range should start from 7 years and beyond. The degree of creditworthiness that includes client list plays a key role in choosing appropriate market research company.

If it belongs to another company or a group of companies, how independently does it operate

If yours is a large organization and need to do primary research across multiple locations, this factor is important You will need to engage with a market research companies which is associated with a group. The types of groups that can be associated are:

“(a) An international chain of companies all of which are branches of the same company.

(b) A group of international companies who are not directly linked financially or contractually but belong to an international chain of which they are members, backed up by various understandings between members of the chain.

(c) A group of quite independent research companies that for the purposes of a specific project have been brought together as an ad hoc group (perhaps with a prior history of collaboration) to carry out the research.

(d) Or a combination of these

(e) It can happen that the client also consists of a group of companies coming together for some mutual purpose.

Issues that need to be considered are

Contractual issues: The contractual issues that need to be addressed include legal status of parties, laws applicable, official language, arbitration arrangements, considering market research standards etc.

Communication issues: If the client and Market Research Company are co-located in the same country or city then communication is fairly simple. But, if you are dealing with a large foreign firm in that case there may be challenges in timezone, and sometimes language and culture.

Operational issues:-Operational issues define the failure and success of the project. Issues such as team structure, communication methods, tracking tool to track the progress of a project etc. are operational issues that need to be sorted out right at the start.

2.  What clients has it worked for during the last two years

The client base is an important reference point for the selecting a service provider. Check if the provider has worked with a company that is similar to yours and also covers the same project objectives. Second, also check atleast 2-3 project references to ensure that the company can accomplish the project objectives set by you.

3. Is the company a right fitment for me (multiple factors like size of the company etc)?

Finding the right market research partner is a challenge for any company. The key factors that need to be analyzed to find the right partner are noted

Understanding of Research Objectives – This is perhaps the most important factor to consider when choosing b2b market research companies or an expert market research firm. In order to conduct a meaningful study, you have to be sure that the firm understands what you are trying to accomplish with the research. Once the objectives are set you have been successful in ticking one checklist.

Capabilities – The research firm should have a wide horizontal capability to achieve the objectives. The firm should be good at survey, analysis and reporting. If the requirement is for a local survey, the firm should have capabilities to complete it and similarly they should be good at online surveys if there is a requirement for the same. Sometimes it is necessary to combine multiple methods as well.

Timeline –Market research is time-sensitive. If the work is not completed within a deadline, then it may not make sense as market dynamics can change very quickly. What may be relevant today, may lose relevance in the next 3 months.

Relationship Building– Market research tasks may be required time and again and you will want to work with a firm that can support you in all stages of the project and in the process build a great relationship.

Size – The size of the agency in relationship to yours is to be considered as a parameter when selecting an agency. If the firm is too large and handles multiple companies which are far larger in terms of your revenue, then you need to do a check on how many clients are of your size and if the firm has done market research for small business. If there are none, then you may need a rethink. It is true vice-versa.

Location – If the requirement is for local research, then it is better to work with a local market research firm. You can have a one-to-one discussion and understand how the firm will complete the work. However, if the work is for a different city or country, then any firm working remotely can also do the job. 

4.) Who will be the team members working on the project

The team members working on the project will determine the success or failure of the market research exercise. Based upon an article that I found in Flexmr website, the ideal team in an agile structure should include 8 people as defined below.

 ·         1 research strategist

·         1 qualitative researchers

·         1 quantitative researchers

·         2 community moderators

·         1 qualitative analyst

·         1 quantitative analyst

·         1 research presenter

The team members should work independently and be guided by a team leader, who could be the most experienced of the lot. This structure may differ based upon the requirement of the project. For example, in this list there is no mention of a primary survey team. That becomes essential when, there is a requirement for primary research. Community moderators may do the job when there is a focus group or an online survey but not for field research.

Also the role between a researcher and analyst may overlap. Therefore considering the different factors, another team structure can be something like this.

·         1 research strategist

·         1 qualitative researcher and analyst

·         1 quantitative researcher and analyst

·         2-5 surveyors and data moderators

·         1 research report design, creation and presentation.

This team should be good for a moderate market research initiative. 

5.) Do they have experience in the type of research that you need to be done

This is a fairly simple question. You need to check and see the references if the team has done any 2 similar projects in your industry segment and with the broad objectives that are mapped for your project

6. ) What tools, technologies and methods will the team use to achieve the project objectives

When a market research project is being conducted, it essentially involves 3 broad areas.

A.) Primary Research- During a primary survey, the agency may be doing a direct interview, telephonic interview or a focus group survey. It is important to know the tools that they are using. There are different tools like the well known SurveyMonkey or others like SurveyGizmo, Google Forms etc. that are very good to capture data and can be easily downloaded for further analysis and research. If it is a telephonic interview, the telephone call can be recorded and downloaded for analysis.

B.) Secondary research- Secondary research or desk research is generally done by searching information available in the public domain or the databases such as Euromonitor, Mintel etc. A combination of both these can be an effective strategy for desk research. 

C.) Data analysis- Based upon a report by Qualtrics, the AI technologies that will most affect the market research industry are Advanced data analysis, Automated stats analysis, Natural language processing and Text Analysis. Therefore, using AI tools for analysis is the way forward for Market Research. We need to ensure that the market research firm you engage are using cutting edge tools for analyzing the data.   

7.) Are they competitive on the pricing

Pricing is one of the most important factors when we decide to choose a service provider. However, it needs to be seen that a service provider in order to cut costs should not give an ultimate output that does not achieve the overall objective of the project and we have to invest further on the same work with another provider. This is a common phenomenon and needs to be analyzed right at the start.