Choosing the Right Research Company

Well, after having been asked the same three questions three times in almost as many days, I figured others might also be asking, “How do I choose the right research company?” and “How can I tell whose proposal makes the most sense?” and How much should I spend?”

1) Choosing the right research company

It goes without saying that you start by interviewing companies with experience... and ones that have worked for companies you recognize and respect. Call a few of their clients to find out what kind of work was done by your candidates (quality, type, etc.) and how well the data was analysed.

Once you have chosen the companies to add to your short list, you’ll need to brief the prospective agencies. The right firm will ask you questions before giving you a proposal. Lots of questions. The right company will also seek to understand the business challenge at hand before they make any recommendations about how to conduct the research project at hand.

At a minimum, the people preparing the proposal should want to know...

• What is the key issue to be addressed / problem to be solved?
• How/ where does it fit within the corporate vision and other issues under consideration?
• What needs to be learned...and why?
• Who do you believe is best to give you this info? (The researchers may make other suggestions, but they should gain an understanding of who you think is best-positioned to give you the needed details.)
• How you are going to use the information – specifically?
• What research do you already have on the topic? (Yes; they’ll want to see it)


2) “How can I tell whose proposal makes the most sense?”

When the company presents its proposal, the researchers should be able to explain clearly why they have chosen the routes proposed – and the answers should feel right.

You also want a company that respects a budget... and one that will recommend what is needed to get the desired level of reliability and confidence in the data, without going overboard.


3) How much will I need to spend?

That’s a little like asking “How long is a piece of string?” The short answer: That all depends on the size of the company, the size of the problem/ challenge and the impact the decision being made will have on the company.

Before you embark on a research project, you need to assess how the resulting decisions will affect the company’s bottom line. If the decision will only influence $50,000 - 100,000 of sales – and is not expected to affect business long term – then it rarely makes sense to spend more than half of that on research. (Four focus groups, a survey and analysis will usually top the $50M mark).

On the other hand, if your company is a multi-million dollar entity with hundreds of employees, and you are seeking answers that will take your company in a new direction, then it would be irresponsible not to do the appropriate due diligence. The ticket price on such research will usually start at $50,000 and go up. Sometimes way up.

For some, this may sound as though research is expensive. Not doing research, however, can be even more expensive. That being said, there are types of research that can be completed for less than $10,000. (Please feel free to contact me to learn more on this topic.)
I hope this helps.

Until next time... remember to ask questions and don’t be afraid to go out on that proverbial limb. JMC