The Gantry Group
Building Business Through Research		 Gantry Group Newsletter
Issue No. 7, December 2001
Issue Insights:
  • Market research should always be a separate effort from sales activities. However, a by-product of research is often the generation of highly qualified leads.
  • Market surveys and focus groups can be used to quantify ROI from tradeshows and sales events.
  • Customer Satisfaction surveys can result in repeat business as an additional customer qualification touchpoint.
  • Win/loss analysis can provide sales teams with vital information to quickly adapt to market propensity to buy.
Market Research Windfall

It's an interesting piece of trivia that during the pre-revolutionary years, any tree in colonial America with a diameter greater than 24 inches automatically belonged to her Majesty's British navy. It was a crime to cut down such trees for any purpose with the exception of one instance - if the wind blew down the tree, the tree was for the taking. Hence, the coming of the commonly used term windfall.

Who would have thought one could discover a windfall in market research?

While the clear distinction between sales prospecting and market research must always be honored, many companies realize that very often the by-products of research have a direct benefit to sales. This benefit can be realized in a variety forms:

  • new qualified sales leads;
  • improved ability to monetize leads from tradeshows and conferences;
  • fuel for highly effective press relations campaigns;
  • repeat business from the existing customer base;
  • and new insight into the real reasons behind sales wins and losses.

Generating Highly Qualified Sales Leads

Transforming prospects into closed business requires knowing each prospect's situation and proving how your offering can benefit their business. Having this detailed business information is vital to a successful sales process. One of the main motives behind primary market research is to jump start the sales process by defining customer pain points and vocabulary, identifying influencers in the purchase decision process, and benchmarking competitive awareness. Assuming you have the required selling skills and a well-organized selling methodology, successfully closing business is dependent upon your knowledge of:

As businesses embrace the use of primary market research to gain finer insight into the needs and preferences of their customers, there is a growing awareness that these research projects can produce benefits that extend beyond strengthening customer intimacy. Research participants, who give permission to be contacted, will be tightly qualified and represent the highest probability of a successful sales close.

Surveys in particular, because of the large sampling sizes usually required, can be used as a vehicle for mining large databases for qualified sales leads. Survey participants who complete a questionnaire reveal important data about their needs, buying behaviors, internal buying processes, and channel preferences, all of which are important factors in qualifying a sales prospect. Furthermore, "suspects" become "prospects" when they specifically respond positively when asked if they would like to be contacted by a sales person.

Typically, questions about willingness to purchase an offering from an outside vendor, availability and size of budget, and level of urgency for the offering can be established within the questionnaire. At the end of the questionnaire, participants are asked questions similar to the following: CLICK HERE.

Cautions:

It is important to realize that asking participants to indicate their inclination to be contacted may require that you disclose your company's identity - which can skew research results. In addition, strictly adhere to the following:


Increasing ROI from Sales Events

As with many marketing activities, quantifying the return on investment in tradeshows and conferences remains a continual challenge for most companies. While the dollars invested are easy to track, the effectiveness of an individual sales event is difficult to calculate as leads and customer data are often never prioritized, followed up, or monitored. As a result most companies have a hard time determining the value of investing in tradeshow participation.

One of the main difficulties with collecting leads at tradeshows and conferences is converting them into sales and prospects. In part this is due to the inconsistent collection of data for lead qualification from multiple employees, who, in the press of a crowded tradeshow booth may not be able to ask all the qualifying questions necessary to catalog a lead. Additionally booth traffic that merely leaves business cards or swipes badges to request information is barely qualified at all.

Market surveys of booth visitors can assist greatly with lead qualification, enabling sales staff to more efficiently and effectively allocate their resources among prospects. Such surveys are designed to solicit feedback on the booth, changes in customer perspective of your company, brand awareness, and the level of interest in your offering. Unlike other market research participants, these individuals who provided their contact information are expressly interested in your offering even before they answer the questions. The end result is a refined list of highly qualified prospects, who, can be prioritized for appropriate follow up. These leads can be tracked and monitored and fed as input into your marketing ROI calculations.

Alternatively, studies of tradeshow attendees before and after the event can provide key data on the effectiveness of your tradeshow presence. Before and after surveys of either the same group of attendees or different samples, can provide vital insight into the effectiveness of your company, competitors, value proposition, market positioning and brand strength by measuring changes in these metrics.
 
 
Leveraging Press Relations

Another important side benefit of conducting market research not to be overlooked is publication of the results of the study. In many instances, companies are quite willing to summarize portions of the study for public consumption. Trade magazines, journalists, editors and news writers are continually seeking data that is credible and informative. The results of most market research studies are often quite revealing, providing the basis for articles and press coverage.

Furthermore, if you can affiliate your research with an industry-respected sponsor such as an organization or trade association, your ability to attract press attention is even greater. An endorsement by a recognized authority in the industry not only influences the participation in your market research, but also creates immediate recognition for your company as a thought-leader and customer-focused enterprise. Endorsements from trade associations and similar valued membership bodies can even offer the opportunity to include the membership list in the survey mailing, which has a similar effect to a direct marketing campaign even though this is not what you are intending.

Finally you may be able to gain press coverage both before and after the market research, as the mere fact that you are conducting a landmark study is news in itself. Again, remember that if you pre-announce the study, you may be biasing the results by revealing your identity to participants.
 
 
Retaining Customers and Generating Repeat Sales

Conducting customer satisfaction surveys of your existing customer base has multiple rewards. In addition to providing you with vitally important data about how your customers perceive your offering, the mere fact that you are concerned with what your customers need and want will elevate your standing. By conducting customer studies you can more easily identify customers who are ready to buy as well as recapture those who may be considering competitive offerings. Again, by asking your customers directly for permission to call on them, you instantly qualify those with highest value.

Regular customer satisfaction surveys are of course, even more effective at customer retention. Such surveys enable you to keep constant contact with key business, improving the chances of repeat business and customer lifetime value. As a result of regular customer satisfaction research, firms can focus their selling resources on those customers that are most profitable.

Finally most market research studies include some form of incentive package to motivate participation and to demonstrate appreciation. This is an opportunity for you to deliver added value to your customers. This can take the form of free registration to a valued conference, a raffle for a drawing of a highly anticipated product, or an offering to elevate their customer service level to a preferred status.
 
 
Analyzing Sales Wins and Losses

One of the most revealing forms of market research with direct impact on sales success is a gap analysis between what your sales force perceives as driving wins and losses and what the market actually thinks. While such market research has the potential for "second-guessing" the sales force, positioned properly, it can be used to motivate and energize the sales staff. The gap analysis basically consists of two market research surveys, one canvassing your sales force for their explanation for why customers do or do not buy your offering, the other canvassing both existing customers and lost prospects (e.g. customers who are buying from your competitors). A comparison of the survey results from these three constituencies will reveal areas in your selling strategy and market positioning that can be modified and refined.

Conducted on a regular basis, sales win/loss market research can support the sales staff by enabling them to quickly correct selling strategies to reduce lost sales opportunities. To ensure the sales staff is on-board, most firms do not request that the sales participant reveal his or her identity. Used in the aggregate, companies can discover the match between what customers want versus what they are being sold, as well as educate the sales team to craft a sales pitch that more accurately matches customer needs and preferences.
 

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Market research intentions should never be abused. Nevertheless, there are distinct advantages that improve the sales process, which should be recognized and used with caution.
 

About Gantry Group: Founded in 1997 and headquartered in Concord, MA, we are a full-service, custom market research and advisory firm dedicated to helping companies cost-effectively accelerate the successful market adoption of their products and services - online and offline.

The Gantry Group has been helping companies design, manage and analyze quantitative research studies to drive successful new product and market initiatives. We also provide ongoing business metric benchmark programs, such as customer satisfaction and brand/competitive awareness, to enable companies to scorecard their progress from the Voice of the Customer. Contact us today to see how we can make a difference in your online and offline businesses.
 
The Gantry Group, LLC
30 Monument Square, Suite 135 
Concord MA 01742 		 Phone: 978-371-7557
Fax:  978-287-0043
Email: info@gantrygroup.com
Web: www.gantrygroup.com

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