Most business-to-business researchers work within very narrowly defined categories where neither omnibus studies nor syndicated research are available. They face a particular problem when a tracking study is needed to closely monitor marketing efforts on certain products or services because usually a limited budget is available. One of the solutions to this problem can be the establishment of a panel.
A number of years ago a client of mine was attempting to track product usage among a selected group of end-users. Syndicated data was not available nor were available omnibus studies sufficiently selective to meet his needs. The budget was limited. Rapid turn-around was critical because the product was marketed through a two-step distribution system. The product had a limited shelf life and consumption was subject to wide swings which could not be predicted based on distributor-retailer ordering patterns.
The client and I discussed the problem. We determined that the budget would not allow for a sufficient number of normal tracking studies using a sampling of the target audience. In reviewing what we knew of the industry it became apparent that available government statistics were detailed and updated quarterly.
Independently, we reached a similar conclusion. The most effective method of collecting the necessary data, within the budget constraints, was through the establishment of a panel. We used all of the known data of those within the target group to select the 100 who would mirror the entire audience.
As we were building the database for selection of the panel we also set firm questionnaire guidelines. It would be short, simple and not change over time. We wanted high response and comparable data.
Respondents were never asked if they wanted to be members of the panel. We sent the questionnaire and $1 every month to each of those selected. Each questionnaire had an identifying code which was readily apparent to the respondent. The respondent could complete the questionnaire in less than one minute as he was merely asked for the brand used that month, the quantity used and if the brand used that month was different from the one used the previous month.
Normally a minimum of 75% mail response was received. After 10 days follow-up telephone calls were made to non-respondents until a 94% response was received. Call backs were made to respondents who provided in-consistent responses on brand usage and brand-changing.
Within 20 days after the initial mail-out the data would be on the client's desk. The data was then used to project market share, product consumption and set production goals. And it was accomplished at a quarter of the cost that full-scale tracking studies would have entailed.
Twice-a-year reviews were made of the panel membership. Government data was checked to determine if there were any significant changes in the market geographically or by size of operation. Accordingly, members were added or dropped to reflect changing conditions.
Was the panel successful? We believed it was. We kept it going for 14 years by rigorously adhering to the original decision of keeping the questionnaire short, simple and without change. If we had not followed that criteria the project probably would not have succeeded to the extent it did.