Commissioning an agency - brought to you by NatWest

Wednesday, 15 January 2020

With hundreds of options out there, how do you choose the right market research agency for you?

The growth of the research sector by some 60% in the past four years does little to help those looking to commission an agency for a piece of market research (MR). The sector is worth £4.6bn to the UK economy and employs some 73,000 people, creating a deluge of agencies and independent research professionals available for commission. But there is segmentation in the market, and the researchers you choose will depend on what you want your survey to achieve. At this stage, a clear brief for the research is key.

Writing a brief

This will give you and any researchers you commission clarity as to where your business is headed, where any product might fit in – and, therefore, what type of MR you need. A good research brief should include sections about:

1. Your company

This may include what your organisation does and where it fits into your wider sector; details of the products you offer; your current market and how/if this is changing; any partners you are currently working with, including suppliers that may be affected by any new developments.

2. Your business and research objectives

Set out your company’s direction of travel. List current positives (eg strong market position, proved customer loyalty, price advantage) and challenges (eg low sales, competitor activity, declining customer satisfaction); detail why you want to do the research and what you think it will achieve. Is it to test a new product? To gain market insights? To learn more about your customers’ changing needs?

3. Your customers

Consider who currently buys your products – and who might buy a new one. Whose opinions on a new product are particularly important – and are there any groups you should avoid? What gender are they? How old are they? How would you generally describe their income, social status or education? How do you think they would react to your product – and is it something they would need, and choose to buy from you?

4. Your budget

Being clear on how much you want to spend helps any agency to work out options that are realistic for you – and advise the respective merits/value of each one.

“All of this information gives us a fantastic start,” says John Gilbert from north London MR agency Circle Research. “You can then go to an agency saying: ‘This is our plan, this is our budget, what are your thoughts?’ They can then go through your brief and challenge your assumptions – that’s a necessary process to ensure any research is as effective as possible.

“But give the agency plenty of notice. If you’re planning to roll out a new product, your research should be happening months beforehand.”

Making the choice

Different MR agencies might offer different services or focus only on certain methods, so it’s important to choose one that suits your needs. When selecting who to commission, you might ask these questions:

• What scale of research do you do?
• Do you specialise – for example, do you do market sizing/pricing research or customer satisfaction?
• Do you know my industry buzzwords and the market conditions?
• Have you previously addressed my research objective with other brands?
• Can you give examples?
• Have you used MR to inform and evolve your own agency’s development?
• For my research, how would you ensure you approach the right participants?
• How would you contact them?
• What will my involvement be in setting the research parameters?
• How will you report the results – and do you have examples?
• What is your typical turnaround time?

Then ask yourself:

• Do they understand my objectives?
• Are their suggestions or comments consistent with what I want to achieve?
• Does their business commercial mindset match mine?
• Do they ask inquisitive questions? Was I encouraged by how they challenged me?
• Do they understand my business – or at least my situation?
• Did I like them? Could I work with them?

“When choosing an agency, ask them to draw up a proposal as to how they would meet your MR needs,” says Julia Whitehead, director at Ask Joe Public, qualitative researchers based in East Dulwich in south-east London. “The more details you give them in your research brief, the better equipped they are to give you a constructive proposal.”

It makes sense, of course, to choose an agency that has in-depth knowledge of your particular industry or market – Leading Edge, for instance, specialises in the construction industry; Sherbert Research carries out child and teenager research; Purdie Pascoe market-tests medical supplies.

It’s worth checking out through internet searches which agencies might focus exclusively on your sector – but many agencies offer multi-specialisms and, says Gilbert, effective research doesn’t necessarily flow from understanding a sector, but understanding a problem.

“Knowing your industry is handy, but research is usually about digging down into a more general business challenge – customer satisfaction, say, or launching a product. Good agencies will be able to do this.”

And, adds Whitehead, when selecting an agency, remember you are choosing – so give yourself a choice: “It’s usually worth giving your brief to two or three agencies and inviting them to pitch for the work. That way you can choose the one that seems most aligned to your business and desired outcomes.”