Online Methods for Offline Research 45th ANNUAL CONFERENCE

1
Online Methods for Offline Research45th
ANNUAL CONFERENCE SYMPOSIUM

• June 5th, 2003

KL Communications
2
Online Methods for Offline Research

• With the advent of web surveying, researchers
  have a powerful new tool at their disposal
• Yet, web surveying in itself, is not a panacea
• Traditional research techniques have advantages
• Sometimes, a combination of traditional and new
  techniques proves to be the best research
  solution

2
3
Online Research BUZZ

• I think the biggest change over the next couple
  of years will be that Internet will replace RDD
  telephone as the primary data collection
  methodthe only long term solution is having
  high-quality respondent panels. And I feel that
  Internet is a more effective and cost efficient
  way to manage panels
• Ravi Raina, director of client services, MMR,
  Atlanta
• Clients have less confidence in traditional phone
  interviewing. They cant imagine themselves
  responding to a survey call and so dont believe
  that normal folks agree to respond. At the
  same time, clients look askance at online
  methods.
• Lynne Mobilio, partner, Lewis, Mobilio
  Associates
• Companies realize they need something to bridge
  all of the long used research methods together
• Deborah Yeh, senior product marketing manager,
  Vividence, Inc.

Source Quirks Marketing News
4
Online Research BUZZ

• I think that the Internet is here to stay and
  that research will continue to grow in the area
  as the increase to broadband continues to grow.
  We will need to be creative in gaining
  respondents beyond sweepstakes in order to
  maintain response rate
• Mary Wang, eastern regional sales manager, SPSS
  MR
• As the Internet keeps getting larger and larger
  and people become that much harder to reach via
  the phone, I believe that the Internet is going
  to become more of the norm in reaching
  respondents.
• Stacey Hurwitz, president, Strategic Business
  Horizons
• The Internet is definitely here to stay but I
  think a new technology will emerge, something
  like the handheld BlackBerry devices that have
  Internet access. This will result in many more
  mixed-methodology studies (mall, phone and web)
• Merrill Dubrow, vice president, client
  development, Harris Interactive

Source Quirks Marketing News
5
Presentation Focus

• What are the benefits in adding online research
  to my methodology mix?
• How do I find an online sample, especially for
  low incidence populations?
• Can I rely on online respondents to represent
  both online and offline populations?
• How do I merge online data with other results?
• Should I create a custom e-panel? Why? How can
  I best manage it?

6
Presentation Focus

• What are the benefits in adding online research
  to my methodology mix?
• How do I find an online sample, especially for
  low incidence populations?
• Can I rely on online respondents to represent
  both online and offline populations?
• How do I merge online data with other results?
• Should I create a custom e-panel? Why? How can
  I best manage it?

7
US Internet Usage

• DATE - April 2002
• NUMBER - 165.75 million
• POP - 59.1
• SOURCE - NielsenNetRatings
• Business Percentages Even Stronger
• 86 Web penetration

Internet usage doubled in just three years March
1999 / 83 million / 30.7 - Millward Brown
IntelliQuest
8
Growth in U.S. Web Research Revenue

• Web-based research is expected to grow at an
  average of 30 per annum over the next two years
  to 45 of U.S. research revenue in 2005

Source Inside Research, March 2002
9
Online Research Benefits

• Online research offers savings in time and money
  due to the potential for faster survey design,
  data collection, processing, and analysis.
• Other potential benefits include
• Real time result reporting,
• Greater consumer acceptance than telephone
  surveys and
• Improved targeting due to the segmentation
  potential of the web

10
Online Research Benefits

• Consider the changing landscape of traditional
  vs. web sampling efficiency
• Falling response rates to telephone
• Random telephone response rates (lt12)
• Cooperation rates (lt40)
• Timing cost inefficiencies of mail
• Two-thirds of households have Internet access
• Cost advantages of online research

11
Online Research Advantages

• Preferred by respondents
• Less intrusive than telephone work
• Respondents can decide when
  they want to complete the survey
• Ability to start survey, then come
  back later to finish
• In contrast, an unanticipated phone survey is
  always just a few minutes more

12
Web Vs. Telephone

• Telephone Surveys Disadvantages
• Generally higher costs per completed interview
• Interviewers often bias responses based on verbal
  cues or voice inflections
• Difficult to ask personal or sensitive questions
• Answering machines, Caller ID, Call Blocking and
  other telecom services make reaching people by
  telephone more difficult each year
• Respondents more likely to give socially
  acceptable answers when speaking to another
  person
• Increasing skepticism of telephone surveys due to
  numerous telemarketing scams

Source Technical Paper from DSS Research
13
Online Research Advantages

• Cost Savings
• Sample procurement minimized
• Web surveys afford low variable costs
• Respondent ease
• Respondents can start, stop and return to the
  same survey at their convenience
• Fast Turnaround
• When management needs it yesterday, a structure
  is in place to make it happen

14
Web Advantages / Fast Turnarounds

• 75 of web surveys are answered in the first
  three days

Source Market Facts Interactive Panel
15
Online Research Advantages

• Robust open-ends, often superior to telephone
  interviewing
• More Truthful responses
• Impersonal nature of web surveys allows people to
  be more honest direct
• Immediate access to open-end verbatim transcripts
  top line data

Password Protected data can be posted
immediately to your web site for clients
immediate gratification
16
Online Research Advantages

• Test audio/visuals (e.g. concept statements,
  pictures, animatics) as in central location

Brochure Cover - Option 1
17
Worst Things About Online Research

• Learning curve in creating more sophisticated
  surveys (automatic skip advances, multiple pages,
  ala CATI)

• Sample concerns for products/services that are
  universally marketed

• Multiple page surveys can drag if the server is
  slow to refresh

18
Worst Things About Online Research

• Impersonal

• Not as effective as telephone interviewing for
  securing cooperation

• Your alert will get lost if you dont have a
  good relationship with your panel members

• Weeding out scurrilous, pretentious returners
  who are just trying to make money

19
CASE STUDY / Methodology Split

• Telephone provides the flexibility to identify
  the appropriate person for the survey
• Respondents have ample patience for good
  interviewers
• In contrast, web surveys lack a personal touch.
• An e-mail invitation can easily be overlooked
• Without any prior affinity, expect a low response
  rate, leading to questions about non-response
  bias

8
20
CASE STUDY / Methodology Split

• Custom survey invitations should be sent within
  minutes of respondent completing phone survey
  (and providing oral commitment)
• Interviewer obtains e-mail address and confirms
  web survey commitment (double opt-in)
• Interviewers sell in commitment to complete
  lengthy web survey

15
21
CASE STUDY / Methodology Split

• Response rates to your web survey will now exceed
  50
• Web surveys can be lengthier than telephone
  surveys because they are not as intrusive on
  respondents time
• Respondents can answer at their leisure, even
  stopping for other business functions before
  returning to the survey
• Incentives, particularly cash incentives always
  help

17
22
Web Mall

• Mall intercept surveys are conducted by the
  interviewer on the Web and the data is
  centralized
• View a sample mall survey from the interviewer's
  perspective
• Currently being offered by Luth Research, among
  others

23
Presentation Focus

• What are the benefits in adding online research
  to my methodology mix?
• How do I find an online sample, especially for
  low incidence populations?
• Can I rely on online respondents to represent
  both online and offline populations?
• How do I merge online data with other results?
• Should I create a custom e-panel? Why? How can
  I best manage it?

24
Opt-in Sample Sources

• Employ opt-in sample sources.
• Reputable firms that have received permission
  from its constituents for online surveys
• Major opt-in list companies include
• Affordable Sampling
• Survey Sampling
• PostMaster direct
• e-direct
• XactMail
• Synergy mail

25
Opt-in Sample Sources

• Affordable Samples Inc. - No web site.  Contact
  James Sotzing at jsotzing_at_affordablesamples.com
  
• Survey Sampling - www.surveysampling.com
• PostMaster direct - www.postmasterdirect.com
• eDirect - www.edirect.com
• XactMail - www.xactmail.com
• Synergemail - www.synergemail.com

26
Opt-in Sample Sources

• Survey Sampling relies on their self-recruited
  SurveySpot panel for eSample, which they've
  segmented into various "Lifestyle Segments" based
  on a respondent's interest.
• eDirect - Will charge based on number of
  completes, not just number of names.  This helps
  ensure that you meet your target number of
  completes.

27
Opt-in Sample Sources

• Typical cost is about 10 cents a name
• Response rates average 2-5 depending on your
  list and how interesting your subject matter is.
  

28
Some of The Major Players

• Greenfield Online
• Current panel of 1.2 members plus access to the
  MSN database of 65 million subscribers
• Harris Online
• Multimillion members and growing, our online
  market research panel is one of the largest in
  the world. Features custom offshoots.
• NFO Interactive
• The largest representative panel of online
  households in the U.S.
• Knowledge Networks
• The only Web-enabled panel founded on the science
  of probability sampling. Employs WebTV to build
  its random database

29
Some of The Major Players

• LOW COST ALTERNATIVES
• Market Tools / Zoomerang
• Need a robust survey and panel system? Learn how
  zTelligence can work for you or your company
• Insight Express (An NFO Offshoot)
• The world's leading provider of fully automated
  market research

30
Presentation Focus

• What are the benefits in adding online research
  to my methodology mix?
• How do I find an online sample, especially for
  low incidence populations?
• Can I rely on online respondents to represent
  both online and offline populations?
• How do I merge online data with other results?
• Should I create a custom e-panel? Why? How can
  I best manage it?

31
U.S. Online Populations

• U.S. Online Populations are beginning to match
  broader population statistics
• Consumer Demographics Similar
• Gender
• Race/Origin
• Age Groups (lt50)
• Geographic Dispersion
• Household Type

32
U.S. Online Populations

• U.S. Online Populations are beginning to match
  broader population statistics
• Business Firmographics Similar
• 86 Web penetration
• Equal distribution across major SIC categories
• E-mail/Web preferred method of communication by
  Business Decision Makers

Recommendation http//www.ntia.doc.gov/ntiahome/d
n/index.html
33
Presentation Focus

• What are the benefits in adding online research
  to my methodology mix?
• How do I find an online sample, especially for
  low incidence populations?
• Can I rely on online respondents to represent
  both online and offline populations?
• How do I merge online data with other results?
• Should I create a custom e-panel? Why? How can
  I best manage it?

34
Merging Online Results to Offline

• Numerous studies have shown that Web-based
  surveys (when done with similar demographic
  groups) yield virtually the same results as
  traditional methods

35
Merging Online Results to Offline

• According to more than 60 validation studies
  conducted by MFi, predictive validity and
  reliability between online and offline
  methodologies consistently shows that the same
  research conclusions and decisions would be made
  regardless of the medium, be it online versus
  telephone, mail or in person.
• Market Facts interactive

36
Presentation Focus

• What are the benefits in adding online research
  to my methodology mix?
• How do I find an online sample, especially for
  low incidence populations?
• Can I rely on online respondents to represent
  both online and offline populations?
• How do I merge online data with other results?
• Should I create a custom e-panel? Why? How can
  I best manage it?

37
Why Construct An Online Panel

• Ad hoc response rates to online surveys are
  tanking
• Five years ago, you could expect better than a
  20 response rate to an online survey
• Response rates have dropped precipitously down to
  2 for B2B and 3-5 for consumer

Source Postmaster Direct Opt-In Online Sample
38
The Response Rate Issue

• Confront the declining response rate issue now
• Clients...cant imagine themselves responding to
  a survey call and so dont believe that normal
  folks agree to respond
• This is an industry wide issue, impacting all
  methods of offline online data collection
• Need to regain the publics trust
• Play up to our audience, not just a few minutes
  more when we know better

39
The Response Rate Issue

• Direct Marketing Association
• Industry response rates ranged from 1.8 (retail)
  to 0.4 (computer / electronic products). To say
  that Spam has significantly impacted legitimate
  e-mail marketing is the understatement of the
  month.
• email marketing works the best when you are
  sending targeted, personalized and relevant
  content to people who want to hear from you.

40
The Response Rate Issue

• Direct Marketing Association
• I do not foresee a bright future for e-mail
  campaigns given the current movements in the U.S.
  and Europe to ban unsolicited e-mail and the
  imminent activation of the national "do not
  disturb" database
• Just as a rifle is more precise than a shotgun,
  response rates will be higher the more targeted
  and personalized your message, no matter the
  medium.

41
Building your own Online Panel

• Internal e-mail addresses
• Database list of opt-in customers/prospects
• Recruit off your own web site
• Magazines / Sampling Houses
• Take advantage of ongoing research
• At the end of any survey (offline or online, ask
  for opt-in permission to re-contact)

42
Branded Vs. Blind

• A blind panel provides enhanced objectivity
• Surveys would typically include equal questions
  about competition
• Branded panel is easier to recruit because of
  built-in affiliation
• Obviously, certain recruitment methods (e.g.
  recruiting off the clients web site) only work
  branded

43
Recommended Recruitment / Maintenance Techniques

• Get to know your panel members
• Formalize sign-up procedure
• Break through the clutter, make sure members are
  aware they actually signed up
• Follow-up telephone call to new members
• Verify commitment / qualifications
• Build on your initial rapport with members
• Become part of their weekly routine

44
Recommended Recruitment / Maintenance Techniques

• Customize your relationship
• Find out why they joined your panel.
• For money, for survey results?
• Determine number of surveys they would prefer to
  answer
• Weekly, monthly only, what is preference?
• Customize Your Alert Relationship
• Do they have a preferred account for receiving
  e-mail invitations?
• Whats the best time of day to send an alert?

45
Personalized Customized

• The Major Online Panel Vendors have seen response
  rates slide dramatically
• Recent IT study with online panel firm yielded
  only a 9 response rate
• If you have a panel of five million individuals,
  but only a five percent average response rate,
  then you really only have a reliable panel of
  250,000.
• Business models based on sheer size and robotic
  responses wont succeed in the long run

46
Personalized Customized

• Assign a dedicated administrator
• Respond immediately (if not live) to all
  questions / concerns
• Share survey highlights / feedback that are
  relevant to ME
• Tom, Im sorry you felt that last survey was too
  long, but we really appreciate your feedback.
  Here are some highlights I think youll find
  interesting.

47
Personalized Customized

• Members may belong to several panels, make sure
  they know they belong to yours
• Build an online panel that emphasizes the
  individual
• Play up to your audience
• Raising the service bar elevates Panel Membership
  into a CRM experience

48
Personalized Customized

• Internet Companies Must Learn
  How to Personalize Service
• Personalized experience, alternatively described
  as one to one marketing or targeted
  merchandising has long been touted as one of the
  key benefits of the Web. But so far, very few
  Internet companies have been able to take
  advantage of this potential.
• NY Times / August 28, 2002

49
When It Comes to Panels, Large Great Dont Mix

• Due to sheer size, most panels rely on robotic
  responses
• Slow personal response, if any
• Recommendation is to embody CRM principals
• Focus on retention and response rates
• Todays savvy respondents have little patience
  for auto responses

50
Loyalty / Frequency Programs

• Frequency Incentives
• Award points towards prizes for each survey
  answered
• Longevity Incentives
• Award points for each year on your panel

51
Interactivity, What a Concept!

• End each survey with a feedback question
• Ask for recommendations ideas to make panel
  experience better
• Give panel members a reason to answer your survey
  
• Theres a lot of things they were planning to do
  that day. Why should they answer your survey?

52
Whats in Store for Market Research in the Future

• Data collection will increasingly come from
  pre-recruited communities / panels
• Service levels will rise to meet the demands of
  an interactive community
• Most interactive communities are actually managed
  databases
• Traditional panel companies will increasingly
  segment into specialty panels with exclusivity
  options

53
Whats in Store for Market Research in the Future

• The definition of full service has changed
• No longer means qualitative quantitative
  capabilities
• Full Service now implies all facets of offline
  and online data collection combined with top tier
  analytical techniques report writing skills
• Firms viewed as primarily online or offline
  will be considered niche vendors
• Niche vendors will receive RFPs for tactical
  research but be shut out for the more
  prestigious strategic research partnering
  opportunities

54
Whats in Store for Market Research in the Future

• A copy of this report is available on the KL
  Communications web site
• http//www.klcom.com/calendar.html
• Please e-mail me with your thoughts
• Kevin Lonnie
• kl_at_klcom.com