As various presenters at the San Francisco conference made clear, research is facing an assault on two fronts. Shrinking corporate budgets are making it harder and harder for some to justify spending money on squishy things like research (“There’s no ROI!” the nabobs cry). And the proliferation of mechanisms for Web-based DIY data gathering (I can’t bring myself to call it research) has made many a middle manager think that ANYONE can do marketing research.
What can be done to stem the tide? Some answers emerged during a stimulating panel discussion on the state of the marketing research industry. Moderated by Jon Last of The Golf Digest Companies, the panel included Melinda Denton, director of marketing research at Wells Fargo Bank; industry veteran Doss Struse; and Marc Dresner of RFL Communications.
Struse put a positive spin on the rise of DIY data gathering by pointing out that the phenomenon proves there is a hunger for information within companies. In some cases, the data seekers may be in departments or industries that aren’t commonly thought of as consumers of research, a fact which offers both client-company researchers and those on the provider side new markets for their services. And new audiences mean fresh opportunities to demonstrate the value of research.
To keep the MR function relevant, data gathering must be paired with analysis, Dresner said. He cited management consultants as the biggest threat to traditional researchers because many of them conduct research and add their own insights, in contrast to some researchers, whether internal or external, who still just want to be data providers.
Denton also stressed the value of analysis, citing the example of a highly-regarded moderator once hired by Wells Fargo who did a nice job during the focus groups but then failed to make any recommendations in her report. (I bet she wasn’t asked back.) Happily, Denton has found a growing interest among research vendors in providing analysis.
Alive and kicking
Other sessions made it clear that MR is still alive and kicking and that great things can happen in companies and organizations that appreciate the research function.
John Marks, president of the San Francisco Convention and Visitors Bureau (SFCVB), detailed the many ways the Bureau uses research and singled out the yeoman’s work of David Bratton, the organization’s marketing research manager.
The SFCVB samples the opinions of a range of audiences - from local residents (who are asked what kinds of things their visiting friends and relatives, or VFRs, like to do when they come to the city) to hotel guests and users of SFCVB’s Web site - employing a wide array of methodologies including focus groups, mail panels, phone surveys and online research.
Research has given the Bureau more focused and effective marketing efforts, improved its PR, and led to stronger cooperative relationships with corporate partners, Marks said. In fact, one of the most valuable uses of research has been demonstrating the value of affinity programs and other co-branding efforts to the Bureau’s various corporate partners. (Success in this area has gotten Marks in hot water with other visitors bureaus, who are now being asked by their respective corporate partners for the same deliverable!)
More positivity flowed from Michael Buhr of Palm, Inc., who concluded his presentation by saying that the company wouldn’t be where it is today without research. As product life cycles grow shorter, Palm needs timely information to keep pace with technological changes and evolving customer needs. That data comes from concept testing, pricing studies, customer satisfaction surveys, early-buyer research and segmentation analysis.
Indispensable
In order to (re)establish the value of the research function, those who perform it need to make themselves indispensable. How? By demonstrating the power and worth of data analysis. By showing end-clients new ways to think about and use research findings. By finding creative ways to answer tough questions or probe the opinions of untapped audiences.
Those are tall orders. But the MRA conference offered ample proof that they are not insurmountable.