Need a market research estimate? You've come to the right place. In this post our market research company gives you an inside look at how to best ask for a market research estimate. Keep these 4 tips and factors in mind when you reach out to market research companies. All 4 significantly impact your market research estimate that you will receive.
If you provide information on these 4 topics, you will get a true apples-to-apples market research estimate giving you a better understanding on budget.
These 4 tips include choosing a methodology, providing a timeline of when you need the work completed, the number of participants or respondents you are seeking, and your target market area or geography you are looking to focus in.
When searching for a market research estimate, providing detail on each of these areas will help the market research company turn around a quote much faster and accurately.
Not sure how to answer these questions because your new to market research? That's okay.
When requesting your market research estimate, let the market research company know you are new to the process and you need guidance for choosing a methodology and number of completes or participants. The best market research companies will work with you as a partner.
Also keep in mind that if you leave this too wide-open you're likely to get a large variance on scope and cost from the bidders.
Factor 1: Methodology
Do you want to choose quantitative or qualitative? This is one of the first questions you'll want to answer before you request a market research estimate. The methodology is one of the drivers of the cost of market research. Several focus groups across the country are more expensive than a small online survey. 100 executive interviews completed in-person are more expensive than 15 completed by phone.
Qualitative market research is exploratory. Some common examples include focus groups, in-depth interviews, user experience (UX) interviews, and web interviews. Any time you want to have a deeper conversation with a participant, qualitative market research is the angle.
Quantitative market research is measurable. Some common examples include an online survey, phone survey, intercept survey, customer survey, Voice of Customer (VoC), and Customer Experience (CX).
It's considered best practice to combine both qualitative and quantitative in the same market research study. You should start by exploring a topic before measuring.
Factor 2: Timeline
Another answer you want to have for the firm when asking for a market research estimate is when you need the information or when you need the project completed by. There might be a difference in cost if you need it tomorrow versus 3 months from now.
Be clear on your timeline in your email. I need the recruit completed by this date. I want to hold the focus groups on these dates. I need the survey results completed by this month so we can present to management beginning of the quarter.
The timeline always helps paint a clearer market research estimate.
Factor 3: Participants or Respondents
Outside of methodology of choice, nothing impacts your market research estimate more than the number of participants or respondents you need. Try to be as precise as possible with your request.
Tell the market research company you want to hold 2 focus groups, 4 focus groups, or 8 focus groups in these locations. Or if you are going the in-depth interview route, tell them how many participants you would like interviewed, whether you need a moderator or not, and whether you'd like reporting included in the cost.
The same holds true for quantitative market research. List off how many completed surveys you want: 100, 400, 1,000, etc. Not sure how many? Ask the market research company what an acceptable margin of error is.
Also talk about whether the survey is a one-and-done project or longitudinal. Will the survey be conducted every month, quarter, or year? If it's a regular project, the consultant may be able to reduce the market research estimate.
Factor 4: Market area
This is vital for both qualitative and quantitative market research estimates. Where will the market research take place? In a qualitative sense, tell the consultant where you want to conduct focus groups or if you are open to suggestions. This will impact facility rental fees and travel costs.
If you are conducting a survey and need to find respondents (image and awareness, industry study, non-customer needs analysis, etc.) you will want to tell the consultant where your geographies of focus are? Do you focus in California? Does your market area include the entire west coast? Does your market area include the United States?
The smaller target markets likely result in higher costs per complete because respondents are more difficult to find. Whereas a national study presents a much larger pool of respondents.
ETK is a London based Market research and data science consulting firm. Interested in conducting market research with our team? Want to generate insights for your operations, marketing, and strategy? Contact us.
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