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A new article by Statistical Reasoning Research & Analytics, Inc. will be published in the October 2003 issue of Quirk's Marketing Research Review:

The CRM Paradox: Where is the Customer in Customer Relationship Management?

It has been reported that as many as 70% of all CRM projects fail.  One suspected cause is that fact that more than half of all CRM development starts with information technologists, even though sales and marketing departments are the primary users of the CRM database.

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What are some of the advantages of conducting research online? Click Here to Learn More
What are some considerations in adopting online research techniques? Click Here to Learn More
What are some suitable applications for online research techniques? Click Here to Learn More
What are some of the advantages of conducting research online?
The power of online research can be demonstrated by the following capabilities and benefits:
  • The ability to survey humungous samples. With traditional methodologies, the costs of a research project are directly and often linearly related to sample sizes. Web-based approaches defy this rule. Researchers are able to gather feedback from hundreds, thousands, and even tens and hundreds of thousands of people with minimal increases in costs. For example, the cost difference between surveying 500 and 1000 respondents is immaterial via the web, which is certainly not the case with a mail-back survey.
  • The ability to reach geographically diverse segments of the population. It is without doubt that the Internet has defied many geographical boundaries, permitting researchers to survey various peoples on a global level. In a more pragmatic example, multinational corporations are able to reach international customers with a single concerted initiative. Consumer packaged goods producers are able to pilot test new products in one region and gather feedback prior to full national or international rollouts.
  • The ability to survey niches and highly defined sampling frames. In some research situations, the sample frame of interest could be smaller than 1 percent of the general population. Online surveys have the capacity of reaching such a small sampling frame through systematic screening and filtering, thus ensuring that only individuals within a particular segment are surveyed.
  • The ability to deliver multimedia and interactive experiences. Needless to say, web users, more than ever, have come to expect dynamic, stimulating, and interactive Internet experiences. This is a cornerstone of the Internet culture. There should be no exceptions when people participate in web surveys. Luckily, many online survey packages are now capable of incorporating visual and/or audio element(s), including graphics, pictures, audio, and video.

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What are some considerations in adopting online research techniques?
There are several considerations that should be addressed prior to selecting online techniques as part of a data collection plan, including:

  • The nature of the research and scope and complexity of the survey.
  • The nature of the respondent and their access to various Internet technologies.
  • The security of the collected data.
  • The confidentiality and anonymity of respondents.

Considering the Nature of the Research
While the Internet is a suitable medium for collecting data and feedback from internal and external customer groups, vendors, prospective clients, public consumers, and a range of other stakeholders, there are certain limitations that one should be cognizant of when planning a web survey project.

  • First, highly involved studies are not recommended for the Internet. Any instrument that takes more than 20 minutes to complete tends to have higher levels of non-response.
  • Second, highly sensitive information prompts security concerns and discourages respondents from completing your questionnaire. The timeframe you have to turn the project around.

Considering the Nature of the Respondent
The online research will be the first to tell you that true random sampling is not attainable in the context of Internet research. Only if the online population is representative of your customer population, should online surveys be considered. Furthermore, your target audience must have access to email and the Internet.

Considering Security of the Collected Data
Most of the issues regarding the security of conducting surveys on the Internet center on electronic eavesdropping or "data clipping." Data clipping can occur when data from an online survey is transmitted from the respondent's computer (i.e., the client) back to the host computer – that is, when information is being "submitted" at the end of completing the survey form.

Data clipping is primarily a threat with email and form-based surveys.  As information is typically transmitted as a whole block, it can be clipped in its entirety. The stolen information would have meaning in and of itself. It would be analogous to sending a completed pencil-paper customer satisfaction survey to your competitor.

Statistical Reasoning's survey system, however, is built on a web-server platform.  The entire surveying process is conducted on the server side.  That is, all activities take place on the host server and no real data is being exchanged through the Internet. Therefore, there is no real threat of data clipping.

Considering Respondent Confidentiality and Anonymity
Survey administration procedures can be organized in one of two ways – either anonymously or confidentially. An anonymous survey indicates that the researchers would know who was contacted given the database sample, but would have no means of tracking those who had or had not responded. The capacity to analyze and report the results of anonymous surveys is usually determined by respondents' answers to specific survey questions – which can be limited if a respondent has not answered key questions. For example, respondents could be analyzed by client type or by gender to the extent that respondents had answered those questions (client type or gender) on the survey.

With a confidential survey, a unique tracking code (e.g., Respondent ID number) is assigned to each participant in the sample database and likewise printed on each participant's corresponding survey, tagged to their responses to a mail survey or their responses to a web survey. We would not only know who had been administered a survey, but know who had or had not responded to the survey. The greatest advantage of using this system is that a respondent's survey information can be matched with and additionally analyzed in conjunction with the organization’s information on that particular respondent. We have used this system in our work with many organizations over the years and generally recommend it. The anonymity of respondents can still be protected by stripping all name and address information from any data files given back to the research sponsor at the end of the project if so required.

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What are some suitable applications for online research techniques?
Not since the advent of CATI has a new technology revolutionized marketing research as the Internet has. The rapid proliferation of the Internet and e-business has propelled the use of online research methodologies as practical and efficient means of collecting feedback from the general public, prospective consumers, existing clients, and internal customers alike.

Research in every content area, including CSM, segmentation, service quality, new product development, advertising effectiveness, organizational measurement and e-Metrics, have all made extensive use of online research tools such as email and web surveys, online focus groups, and online panels (omnibus surveys).

Indeed, Internet technologies are used not only to do old thing better, faster or cheaper, but have also allowed researchers to conduct much more exciting types studies.  Some examples include:

Customer Satisfaction/Loyalty Measurement
In today's customer-driven operating environment, continuous customer feedback, from initial interaction to product delivery to post-purchase support, is critical to business success. The relative cost effectiveness online surveys make it an ideal medium for collecting continuous feedback from your customers.

Employee Measurement
A critical component of a comprehensive customer measurement program is employee measurement. Employee opinion surveys focus on soliciting employee input regarding such issues as: the effectiveness of current customer response systems; their perceptions of the work environment and job satisfaction; and/or their satisfaction with management leadership and support.  The better able a company is to maintain employee satisfaction, the better able the employees are to help satisfy the customer.

Conjoint Studies in New Product Development
Conjoint analysis is a trade-off technique often used to "decompose" consumers' preferences for a given product and service bundle. By getting respondents from the target population to make judgments between different real or hypothetical offerings, we can determine the relative utility of different product/service attributes. The web provides an ideal environment for conducting conjoint studies owing to its real-time interactive/dynamic and adaptive capabilities.

Service Quality/Transaction Follow-Up
While consumers tend to select the companies with which they deal based on product offerings and benefits, whether they remain customers depends largely on service related factors. Online surveys can be incorporated into enterprise CRM systems and triggered by transactional processes to promptly gauge a customers response to each interaction with the company.

Website Effectiveness/Usability Studies
Also referred to as E-Metrics, website usability studies focus on the site's content, design, navigation, technology, and overall business function, be it a sales-oriented or  customer relationship building one. Usability studies ensure that a company's website consistently offers its visitors a quality and enjoyable experience.

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