Return on Investment in Market Research(by SIS International Research)
Market research companies can implement several strategies for tracking return on investment for their research. The client can specify project milestones, objectives, KPIs, and other metrics detailed in this article.
Value Added Market Research + ROI measures = Competitive Advantage
Companies are increasingly under pressure to justify their market research expenditures, especially in recessionary times. They need more actionable insight than descriptive information, with which they can implement into their strategy. Research firms can work with clients to devise value added research projects that contribute directly to the bottom line.
We at SIS International have compiled a few ways that company can realize Return on Investment (ROI):
Execution metrics in market research:
The research firm and the client create a list of project milestones that judges how the research firm delivers. Metrics can include quality of deliverables, milestones for deliverables and other useful metrics that track the research firm’s performance. This can help the research firm to better meet the needs of the client, while allowing the client to benefit from added value market research.
Objective metrics in market research:
The client can specify in detail beyond the research brief and RFP what are their overall strategic and corporate objectives in quantitative figures. The research firm can work with the client to devise recommendations in accordance with the client’s quantitative objectives.
Key Performance Indicators (KPIs) in market research:
The research program can include key performance indicators. These KPIs can be leveraged into Business Intelligence customized tracking studies and dashboards for longterm Return on investment. These KPIs should be concrete to let clients know precisely what would be considered success.
Strategy Analysis in market research:
Research firms can indicate how competitors are likely to react to the research deliverable’s actionable recommendations. This way, the research firm goes beyond the research requirement, predict how competitors might react and provide recommendations for how the client can counteract competitive movements.
Research firms can analyze current performance against the past, that of competitors and in light of best practices. It allows managers to implement the research and make powerful business decisions based on robust research.
There are many other ways to integrate return on investment, including the above project management and research efforts. Clients and research firms can work together to focus projects on realizing ROI while simultaneously improving the research program’s intelligence yield.