Will Web 2.0 transform market research?
Forrester released a report on this issue last week (see here) and their answer is “Yes, but high costs mean that firms with big budgets lead”. This may be true and if it is then it’s more to do with the nature of using online communities for research. They mean building an ongoing relationship with a group of people than needs to be actively managed at all times. This is then available for the brand to dip into for research or to track.
The real issue here seems to be the shift from a project-based approach to research buying and running an ongoing research resource (which obviously has an ongoing cost). At FreshNetworks we think the benefits of using online communities for qualitative research are huge. We wrote our own white paper on the issue earlier this year (see post here). The depth and quality of insight you can get by building real communities with stakeholders can be incredible and the real value comes from the other benefits of building a community like this.
Traditional market research is very transactional. People answer a survey or attend a focus group. Using online research communities, brands can really engage with people. Involve them in their research, feedback to them and incentivise them not with the cash of traditional methods, but with the knowledge that their input is making a difference. Critically, and this is the really exciting bit, traditional market research depends on you know what questions you want to ask. With online communities, the community can tell you what you need to ask. And that’s probably something much more important and relevant to you!
Peter Gold:
Matt
I think it will depend on brand and focus of the need i.e. is it a short term initiative (think Primark) or longer term (think Sony). As we know, community groups of any kind can provide valuable insight but the closer you are to them the better the response; and it takes time to build that relationship. How many big brands will get this?
Peter
2 May 2008, 11:34 amMatt:
Peter,
Thanks for your comment! I think that the relationship a brand has with it’s customers is important. You’re right to say that to some extent communities grow more naturally where there is a long-term relationship with a brand than where the relationship is transactional and short-lived. However some of the more forward thinking brands are recognising this - Starbucks with MyStarbucksIdea, P&G with their Tremor Panels and a number of others.
Brands can gain hugely from online communities for research but I guess the difference is how they’re pitched to the members. A Sony community might attract people just for being about Sony and for their enthusiasts. Primark might want to set up a community on a different issue - fashion, shopping on a budget, or some other thing that the community members would associate themselves with.
The end result could be the same, but you’re right to suggest it’s difficult for brands to get this. But the ones that do are really reaping the rewards…
Matt
2 May 2008, 2:59 pm