Hot Tip: It’s the Research, Stupid

“I don’t get it. We’re using the Most Fantastic Analytical Wonder Ever Devised Software, Clever Consul-tants Unlimited and Miracle-In-a-Box Databases. Yet, we just can’t seem to successfully add product or expand our customer acquisition efforts.”

Deep down, you know the answer is research — lots of it — but yikes, it’s seriously expensive and way too time-consuming.

You’re right. Or you were, because this is what we usually do:

• Hold a series of large focus groups in many cities at much cost, and then wait for the group facilitator to write up the report. This takes months. And some feel participants are unduly influenced by each other, thus distorting perceptions, interpretations and outcome.

• Send out printed, multipage questionnaires that gather tons of data but require waiting for replies, entering the data and interpreting the results. A lengthy time frame — not to mention all those postage and printing costs.

• Get on the telephone and call. This has become a bit more problematic with the new do-not-call laws that, even though they don’t apply to research, make folks feel comfortable enough so that 80% of the time they say “no.” And this problem is growing as more people are using only cell phones, and calling cell phones is prohibited.

I’ve long been an advocate of all research. Yet today, some believe that the moment a person enters an atmosphere in which they’re expected to sit back and think about an answer, what they say is often different from what they’d actually do.

So where does that leave catalogers?

Well, for one thing, they can take a hard look at the more natural environment of faster, cheaper online data collection techniques. While some say this methodology has shortcomings because of the limited online population, The New York Times noted recently that as of last December, more than 68% of Americans were Internet users. And online research generally reels in better response rates than traditional methods.

Another big advantage of online research is that, unlike focus groups and phone surveys, panelists can take the survey at their own convenience. Because participants can “see” products and/or catalog creative versions, the experience is more entertaining for them — and can be more relevant for you.

You have two options when it comes to online research: self service or full service. Many vendors, like Seattle-based NetReflector, offer both. Self service means you “subscribe” to an annual response license and get access to fully hosted online survey software. After getting trained on the product, you create, distribute and report on your online surveys yourself, and call for support when you need it. For total self service, you can buy software such as Zoomerang that allows you to create a simple survey and e-mail it to your own database of respondents. This means you’ll be doing the lion’s share of the work, so be sure that you have enough staff and expertise available internally.

If your internal resources are already stretched, you would consider full service with a company like NetReflector or Greenfield Online. In other words, you’d outsource your whole survey project — creation, programming, distribution and reporting — either using your own customer database or by acquiring new groups of respondents.

CT-based Greenfield Online, one of the largest online survey solutions companies, works with 3.4 million individuals, all profiled by name, age, income, gender, ZIP code, etc. Compared with a telephone survey, which according to vice president, investor relations Cynthia Brockhoff can average about $32 per completed response, a typical completed response from Greenfield costs about $12.50 per person.

Greenfield’s sessions are typically 10 to 15 minutes and generate some 1,000 opinions in a matter of days. To compile a receptive, qualified panel, Greenfield — often through the use of sweepstakes — asks respondents to fill out basic questions. Respondents then get an “Are you sure?” e-mail, creating a double opt-in.

Like any research methodology, online surveys command best practices. NetReflector’s marketing director Muriel Guilbert comments, “Online surveys are easy to field, so be careful not to over-survey your respondents. [Don’t do it more often] than every 90 days. Also check out vendors’ Web sites for educational materials and helpful hints to help you make an informed vendor choice.” She adds: “Reputable vendors only charge for the number of survey responses you get, not the number of e-mail invitations you send out.”

Here are some starter questions that cover both service options:

1. How much does it cost? Be certain exactly what is and isn’t covered, and what software level you’re buying.

2. How personal, professional and effective is the customer service? There should be a real person to talk to, as well as e-mail support.

3. Do you love the references? If not, find another firm.

4. How private is data, really? Make privacy a No. 1 concern, and ensure that the vendor adheres to the Council of American Survey Research Organizations’ code of standards and ethics for survey research (www.casro.org).

5. How fast is the software? It should be robust enough to handle several thousand outbound e-mails and incoming responses in a matter of hours.

6. Can the technology deal with bounced and “unsubscribe” messages? This is a must-have.

7. How good is online reporting? You generally get what you pay for.

8. How much survey design guidance are you getting? Either hire someone who makes the survey stimulating and detailed enough to elicit the kind of responses you want, or make certain the software you choose offers survey and response templates that help achieve your business objectives.

9. How long has the vendor been in business? You want a firm with online research expertise, not just research experience.

10. How good is the quality of the data? Remember, you need information you can use immediately.

KATIE MULDOON ([email protected]) is president of DM/catalog consulting firm Muldoon & Baer Inc., Tequesta, FL.