The Importance of ROI in the Market Research Industry
Recently, I had the chance to sit down with Andrew Cannon, Executive Director of GRBN (Global Research Business Network) to discuss the upcoming ROI of Insights Handbook that will be released to the public this fall. The Handbook will serve as a framework for companies to begin monitoring their ROI in order to better their overall business.
What is GRBN?
The Global Research Business Network was formed several years ago when market research federations across several regions ( the Americas, Asia Pacific and Europe) realized that their members shared common concerns and also had similar opportunities available to them. The federation leaders decided to form a network that would connect these organizations from the national and regional levels, allowing them to openly share ideas and learn from one another. Their goal is to create a strong network of industry associations to form a better future for the research industry. GRBN’s current key initiatives cover participant engagement, giving back to society and the ROI from Insights.
The Creation of the ROI of Insights Handbook
The fact is, the market research industry is not growing as well as it should be. As more and more enterprises become customer centric, insights organizations have the opportunity to add greater value as strategic business partners. Andrew shared his thoughts on this information:
“It’s fantastic that companies are becoming more customer centric. But the c-suite expects insights to be delivered faster, better, and be cheaper. Whilst more for less is possible, we believe that delivering more for more will add even more value to the business. If insights teams can prove the ROI that their companies are receiving, then it proves their worth in the budget and gives them a seat at the table.”
Following up on the work conducted by Boston Consulting Group, Cambiar and Yale on the benchmarking of Consumer Insights, GRBN has partnered with BCG on a project to better understand the current state of measuring the ROI from Insights and to create both a self-assessment tool as well as a handbook to help Insights teams measure their ROI. More than 200 quantitative interviews and 20 in-depth interviews have been conducted as part of this project and the insights from this research will be used to build the handbook.
Benefits of the ROI of Insights Handbook
The goal of the Handbook is to give insights leaders the ability to determine and measure the ROI for market research within their business. By measuring the right set of key metrics, teams will be able to successfully justify – and promote – the value that they bring to the company. Budgets will not only be justified, but teams will have the ammunition needed to seek an increase in budget.
Andrew commented, “Every company is different, and they’ll need to create their own key metrics based on what is most important to their business. GRBN’s ROI of Insights Handbook gives people a framework to work with so that they can create their own ROI audit. Some people interact with numbers best, while others prefer qualitative data or an interactive story. Our Handbook offers examples that will fit the needs of many companies across the globe.”
Understanding ROI is crucial for market research agencies. These agencies exist to work closely with their enterprise clients to deliver their own value. By providing insights that prove a strong return on investment, research agencies will be seen as partners rather than just vendors churning out data.
Andrew and his team at GRBN have been tasked with a tall order to encourage companies all over the world to not only recognize the importance of ROI, but to begin actively demonstrating it within their own companies. Andrew does not take this task lightly. When asked about how he will measure the success of the Handbook, he responded with the following:
“At GRBN, we have an ambitious goal to begin helping companies put a procedure in place to measure ROI. By June of 2018, we aspire to have at least 200 companies actively using the ROI of Insights Handbook to better their businesses. According to the BCG, Cambiar and Yale Benchmarking Study in 2015 only 20% of client-side insights teams are seen as strategic insights partners and through systematic ROI measurement we hope that this proportion increases to 40%.”
At Dapresy, we are proud to be sponsoring this new initiative set forth by GRBN, and we look forward to contributing to the ROI conversation.
Keep your eyes out this fall for the ROI of Insights Handbook that will be available for download on GRBN’s website!