Editor's note: Joel Lieberman is research project manager and Steve DiFranco is administrator of market research at General Motors Service Parts Operations. Susan Robinson is senior account executive at the NPD Group.
There has been substantial discussion in the market research community about the benefits of long-term relationships that are developing between research companies and their clients. Research seminars, agency visions and company/supplier conferences speak of the client/research company "partnership." As many corporations across a wide range of industries continue to downsize in the 1990s, the need for these partnerships will grow.
Partnership discussions have focused on increasing the involvement of the research firm in the client's research. Both parties benefit from the active role taken by the research firm in defining and solving marketing problems for the client.
The client benefits through improved service and lower costs. Research company personnel better understand the client's needs and respond more quickly to requests for work because they are part of the client's "extended staff." Ongoing dialogue reduces miscommunication or the failure to communicate important research needs. Project costs are reduced because start-up costs decline after the first year of the project. The supplier is motivated to gain efficiencies in project execution and pass them along to the client because the firm has become a stakeholder in the client's business.
The research firm benefits because guaranteed long-term business allows it to more efficiently use its resources.
Often, this means committing a dedicated team to the client's business. With improved service from dedicated personnel and reduced costs due to efficiencies gained in project execution, the research firm has developed a competitive advantage when the project is rebid.
However, little discussion has occurred about the need for increased client involvement in the research conducted for it by an outside research firm. Close client involvement in research benefits the client by ensuring that the right questions get answered with the best information at the lowest cost. The research firm benefits by getting needed support in conducting quality research.
In this article we will discuss in detail the benefits of increased client involvement across all areas of client-research firm interface. These areas are: development of requests for quote, selection of research firm, survey implementation, and evaluation and feedback.
DEVELOPMENT OF THE REQUEST FOR QUOTE
The client-research firm interface often begins with the request for quote or RFQ. Although clients generally communicate research needs this way, typical RFQs are only outlines of work to be conducted. Setting forth detailed research specifications in RFQs benefits both sides in several ways.
Benefits to the client include reduced costs and assurance that management questions get answered. Detailed requirements allow the client to select the research firm with lowest bid, provided that the RFQ is submitted only to agencies with good service who are capable of doing the work. Detailed requirements provide a focus on obtaining "need-to-know" information to answer management questions rather than "like-to-know" information, which increases costs.
Benefits to the research firm include cost and time savings in bid development and project execution. Clearly defined project objectives will help the research firm prepare a bid that meets the client's needs. The firm can then discuss the reality of those needs with the client before accepting the project.
Detailed research specifications in the RFQ provide the research firm with a road map for the study. Critical research issues as well as products to be delivered are communicated to the firm to ensure that study objectives are met. To best communicate this information, the RFQ should cover the following areas: study objectives, study design, and information requirements.
Study objectives
The first section of the RFQ should contain information on study etiology, purpose and objectives. The client will benefit from a focus on research "needs" rather than "wants" to keep costs in line with budget. Understanding the purpose of the study will also help the research firm's interviewers secure the best information from respondents.
Study design
The second section of the RFQ should contain a description of study methodology. Included in this section should be issues such as: who the respondent is, what type of survey should be conducted to get the best responses (i.e. mail, phone, personal interviews, hybrid), what type of sampling is needed (simple random sampling, stratified), how much sampling is needed, and issues related to response rates (e.g. reminder post cards).
When possible, a draft questionnaire should be included in the RFQ. Project costs can be reduced because research firm development time is shortened. The firm should review the questionnaire to determine its effectiveness. Does it link with objectives and analyses? Is it easy to follow and clearly worded?
When appropriate, the RFQ should also contain an invitation for research firms to submit alternative designs. The firms should always assess the viability of the client's design. In situations where another approach is better (vis-a-vis cost, information), the research firm can provide details on that design in addition to the requested design.
Information requirements
At this point in the RFQ, the client communicates to the research firm its requirements for information. This can include topline reports, response/refusal rates, demographic goals, tabulation reports, analyses and raw data on PC diskettes.
Topline reports and response/refusal rates can be obtained early in a study to uncover problems with study assumptions. The client who is involved in the research process may then be able to revise study scope or methodology to meet study objectives. In studies with low response rates, for example, the client may opt to reduce targeted sample sizes and settle for less-precise estimates to keep project costs within budget.
Other information that should be monitored throughout a study includes demographics. Sampling studies depend on drawing inference from samples to target populations. Clients who are involved in studies can best determine appropriate action if demographic goals are not being met.
Important information supplied by the research firm is contained in the tabulation report. Because of the client's knowledge of his or her industry and company, involvement in developing report content and format will facilitate answering management questions. It is costly, time consuming and frustrating to rerun tabs because the client found them difficult to work with or because they didn't help answer management questions.
Clear communication of analytic and graphics needs is important because costs for this work need to be factored into the bid. In addition, because analyses strongly depend on methodology, client and research firm must review analytical requirements to assure the client that management questions are answered.
With PC diskettes containing study data, the client who has PC training and proper software can quickly respond to unexpected management requests and save additional expense. For example, a multiple regression analysis could run $1000 and take several days to complete if conducted by the research firm. With PC training, software and data diskettes, the client could perform the same analysis in under one hour. Cost savings for one analysis conducted in-house could pay for the purchase of the software.
Selection of research firm
The completed RFQ is then distributed to several research firms for competitive bid. The bid process is designed to select the supplier who can provide the requested research with the best service at the lowest cost. However, the client must consider bids on alternative designs, especially as they relate to cost.
The client must carefully analyze bids on a total cost basis to make sure that they are comparable. Hidden costs such as client travel to the research firm's phone facilities for pretest should be considered in total-cost comparisons. In addition, some research firms specify postage charges for mail surveys whereas others indicate that postage will be billed at cost. Careful analysis of bids on a total-cost basis will ensure that the client gets the best research for the money.
SURVEY IMPLEMENTATION
Development of a detailed RFQ reduces the need for extensive client involvement in survey implementation. The groundwork for quality has been laid through detailed specifications of project design. However, there are two points during study implementation which require client involvement: pretest and quality control.
Pretest
The survey pretest is perhaps the most critical part of survey implementation. It is an opportunity for client and research firm to determine whether or not the survey, as originally designed, will provide answers to management questions before substantial funds are expended. However, it is often a step that is either eliminated to reduce cost and time or one in which the client sees his or her involvement as unnecessary. Yet, invaluable information can be obtained by a well-executed pretest.
The pretest, especially on phone surveys, allows both client and research firm to see and hear how the survey is working. Are we effectively reaching the targeted population? Are they responding? Do respondents have difficulty understanding questions or using questionnaire scales to respond?
Frequently, the client is in the best position to determine if problems are occurring in respondent understanding or interpretation of survey questions. The client is often needed to help the research firm determine what modifications may be needed to the survey process or survey instrument. The worst case scenario is a survey with severe data limitations due to problems in respondent understanding and interpretation and a client who is ignorant of these problems.
Because the interviewer (for phone surveys) is the only contact with respondents, a critical part of the pretest is interviewer briefing. Direct client involvement is important to help interviewers understand the nature of the client's business, the targeted respondents and study objectives. The client who is involved in pretest is rewarded by quality-related benefits.
Clients also benefit from inviting to the pretest selected employees from their organization who have requested that the study be conducted. Studies are only useful if they are used. Studies are often wrongly criticized for not reflecting true feelings of respondents if study findings go against paradigms or expectations. The client researcher who brings influential members of his or her company to the pretest to hear the voice of the customer will gain their support in selling study results.
Quality control
Quality control (QC) procedures need to be established to reduce the chance of errors during study implementation. Although the research firm is responsible for quality control during study implementation, client involvement can be useful.
In particular, because the client knows his or her business best, he or she is in the best position to provide QC limits for quantitative input from respondents. The client also can provide proper verbiage for interviewers to re-ask questions when responses outside QC limits occur. Responses outside these limits should not automatically be rejected.
However, developing QC limits and interviewer follow-up can help reduce errors due to interviewer typing or respondent misunderstanding.
EVALUATION AND FEEDBACK
A process should be established to periodically evaluate long-term projects. The client should review his studies to determine if revisions are needed to better meet business-plan objectives. Although changes should be minimized to facilitate historical comparisons, methodology or questionnaire revisions may be needed to better respond to management questions in a dynamic business environment.
Summary
Clients need to take more responsibility in their own research, from RFQ development to survey implementation and study feedback. benefits to both client and research firm of increased client involvement in research include reduced costs, improved service and development of a strong client- research provider relationship based on two-way dialog and shared interests.