Angus Reid Angus Reid is the CEO of Vision Critical and its global public opinion practice Angus Reid Strategies. In the research business for 40 years, Angus has been the recipient of a Canada Council Doctoral Fellowship, the Entrepreneur of the Year award, and the Marketer Hall of Fame (2009). Read the full biography here.

Tidal Change or Tsunami? How Technology is Changing Everything in Market Research

By Angus Reid - 1 October, 2009

A decade ago, everyone was talking about internet-based research. Now - at least across most of the developed world - everyone is doing it. But today’s global recession and changing technology are realigning the three roles that are at the center of commercial market research: clients, suppliers and respondents. And the change is happening fast. A generation from now, the market research industry will make today’s methods look like horse power next to the age of steam power. If there’s one thing we know, it is that technology prompts not only economic shifts, but shifts in fundamental roles and relationships.

As the quantity and quality of data increases—and as does our skill at mining it—client-side researchers deliver more insight, more quickly, and with a cost of next-to-nothing.

One of the most significant changes in market research is how client-side researchers, whose roles and responsibilities in their organizations are being rapidly enhanced, can use data to get closer to both the corporate C suite and customers/consumers. As the quantity and quality of data increases—and as does our skill at mining it—client-side researchers deliver more insight, more quickly, and with a cost of next-to-nothing.

For voice-of-customer research, the custom online panel is the platform of choice for insight that’s rapid, inexpensive and often more profoundly helpful than what was gained by traditional methods. Vodafone New Zealand, NASCAR America and Britain’s BBC are among hundreds of leading brands that own and operate proprietary online panels for a reliable, consistent measure of the customer pulse.

For voice-of-market research, clients have more choices than ever for accessing online respondents. Media organizations such as US Today, Business Week and Canada’s Rogers Communications offer data access and research services that compete with established access panels - and many others in traditional and new media will soon join this movement. Just as the cost of data storage settled to become a non-issue, the cost of data collection for all but the most specialized groups (e.g. cardiologists) is no longer a barrier in the world of marketing research.

This new model is by no means perfect. Technology has made new tools available, but expertise is needed to use those tools to the best possible advantage. Custom panels in the hands of amateurs can produce results heavily weighted to brand zealots and professional survey takers. Even so, the point remains: survey data is becoming increasingly easier, faster and less expensive to collect.

The global consolidation that has characterized the last twenty years has reached its peak. The four largest survey research firms in the world are European, a phenomenon triggered by the structural rearrangement of European unity, especially post-1991.

And what of so called ’suppliers’ - what changes does this new era hold in store for those that serve end clients in this $20 billion-plus global industry? The global consolidation that has characterized the last twenty years has reached its peak. The four largest survey research firms in the world are European, a phenomenon triggered by the structural rearrangement of European unity, especially post-1991.

However, this consolidation will likely begin unravelling in the decades to come. The internet and new media create economic imperatives that favour smaller, more strategic consultancies over massive data collection engines. Most global research companies earn meager profits and, like many Titans in other corners of the information sector such as newspapers and television networks, have balance sheets that cannot sustain the pounding they receive by the economic realities of 21st century research. Who knows who will be the dominant players in 2029—but it’s safe bet that some of today’s biggest will be long gone in favour of fresh new leaders with a different approach.

For the third member of the MR triad – respondents - the transition to online research involves an entirely new dynamic. Gone are the annoying telephone calls and often unintelligible interviews for little or no compensation. Online research allows for time and place-shifting, and opens the door to interactive possibilities that render the 21st century survey to conventional surveys as Facebook is to postcards.

Naturally, the industry has a long way to go to fully exploit the potential of online and mobile distribution. Many online surveys look like telephone surveys that have been pasted onto screens. Willing panelists in the non-proprietary market (a.k.a. access panels) often find themselves exposed to surveys that are too frequent, or so soul-destroying that they pledge never to take another survey again. Over time, more access players will enter the online survey field - and we’ll all learn more about the rules of engagement and how to exploit visual stimuli. Thanks to that maturation, I suspect we’ll find more contented respondents who actually enjoy the process of doing surveys.

It’s too early to predict the exact shape of the global MR industry generations from now. For better or worse, it’s becoming increasingly clear that the current foundation of market research is about to shift, crack and perhaps even disintegrate. The result of this shakeup will be an influx of fresh air, new ideas and refined methods - all so that technology can be better applied to listen in a more human, more thoughtful way to what consumers want.

Angus Reid

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