Market Research Book:
The Benefits of RFIs
by By Kathryn Korostoff, Research Rockstar LLC
(part of Chapter 6: RFIs and RFPs)
Taking time to write either an RFI or RFP may seem like a burden, but in the long run as a form of damage control that saves you both time and money. For market research, it is more common to go straight to an RFP.
But in some cases starting with an RFI can “filter” a long list of possible companies down to a more manageable set. Read on to learn how to write RFIs and RFPs for market research.
RFI and RFP content recommendations/ Planning for easy comparisons/ Finding potential agencies
If you want your MR project to precisely meet your goals, you will need a precise RFP. The RFP is necessary to document your research needs and expectations. It also gives you an opportunity to ask for free advice.
Do exceptions exist? Do some clients successfully hire agencies without a formal RFP? Sure. I have clients I have worked with for years, and sometimes they just send me a brief email, send an informal memo, or make a five-minute phone call to convey their needs. These are clients I know—I know what types of research they find most useful, I know what challenges they are likely to face, and I know their typical budget levels.
Unless you have a long-standing relationship with an MR agency, I strongly recommend going through an RFP process. It mitigates a lot of risks and ultimately will save you a lot of time.
But I Don’t Have Time to Write an RFP!
Taking the time to write an RFP can be problematic, but it’s a worthwhile investment for any project over $25,000 (and in the world of custom, primary research—that’s most of them). If you don’t write an RFP, you will waste much more time on things like the following:
Trying to compare proposals that are based on entirely different assumptions. When all the proposals are based on the same specifications from the same RFP, comparing them is much easier.
Issuing an RFP later because none of the proposals met your expectations. You then have wasted one or two weeks waiting for proposals that were, in effect, useless, and you have to start all over anyway.
Arguing with a research supplier down the road, because it made an assumption that you find objectionable. For example, do you really want to be three weeks into a project only to find out that the supplier’s fees were based on the assumption that you were providing the sample? There are many assumptions made in pricing a research study; you really don’t want to have to argue about fees once it’s underway.
RFP formality varies greatly, depending on the size and scope of your research project. In most cases, it really is fine just to go straight to RFP, to the companies from which you’d like to see proposals. But there are cases when issuing a request for information (RFI) first makes sense. What’s the difference?
RFIs
Let’s say you’re about to do a market segmentation study, and you’ve identified 10 different companies that all look like potential candidates to meet your needs. You might not want to get 10 actual proposals, because reading and comparing proposals is a very time-consuming process. You might want to add an initial weeding-out phase by sending out an RFI.
The RFI is a form to identify key characteristics of companies in the consideration set, so that you can screen out companies based on important criteria. The goal is to create a manageable short-list of 3 or 4 agencies from the initial larger set (10, in the example above).
For example, in the RFI, you might ask in what countries the company has direct offices, or what percent of its work is consumer versus B2B related. That way, if you’re only interested in candidates with offices in three specific countries and that does at least 50% consumer work, you can easily thin the herd.
Pssst … the sneaky thing about an RFI is that it gives you a chance to learn about potential suppliers before tipping your hand as to what you actually want. You can send out an RFI without telling candidates what the ultimate project is about. This way, you are more likely to get an objective profile of their resources and expertise.
In contrast, when you send out an RFP for, let’s say, a logo testing study, you get a skewed view. Guess what types of responses you will get? Responses that showcase logo testing expertise—even if a little exaggerated.
RFI information is pretty basic. Typically, the RFI asks for information about agency size, history, and areas of specialty. Often, an RFI also requests customer case studies, references, and biographies of key staff members and the executive management team.
An example of how common RFI information requests are stated is shown in Table 6-1, along with a description of why each type of information might be important to you. But remember that the content is up to you; just think about it in terms of screening criteria. If you know you will only pick an agency that meets Criterion A, translate that into an RFI question.
| Table 6.1 Common RFI Information Requests | |
|---|---|
| Common RFI questions | And why you might ask them |
| List of countries with direct offices | If you are planning a global study, you might prefer an agency that operates in your key markets. This is especially true if localization will be an issue. |
| Number of full-time equivalents |
Is this company primarily relying on subcontractors? |
| Vertical industry specialties (for B2B) |
Some agencies dabble in all industries; others specialize. |
| Demographic specialties (for consumer research) |
Does it specialize in particular segments? For example, some agencies specialize in teens and others in specific ethnic groups. |
| Methodology specialties | Does it specialize in particular methods? Does it claim a particularly strong skill set in an area of interest to you? |
| Revenue | You might want to know something about the sales volume, although many agencies are privately held and might not disclose. |
| Year founded | Has it been around for some time? |
| Headquarters location | Is it close to you? This is not necessary, but can come in handy for more complex projects. |
| Links to articles or blogs authored by key employees | Has it published materials that give it relevant credibility? Do you like its style? |
| Management team list and biographies | Is the company run by researchers? By academics? By business operations professionals? How many have graduate degrees? Do they have backgrounds in your industry? Do their biographies reflect any real passion for research? |
The RFI process can be very valuable, but in many cases, it’s overkill. The truth of the matter is that you can ask for a lot of the same information in a proposal, so if you’re under the gun in terms of schedule, and there are only three firms under consideration anyway, there’s nothing wrong with going immediately to RFP.
This is an excerpt from the book, "How to Hire & Manage Market Research Agencies," which is available on Amazon. Published by Research Rockstar LLC. Copyright © by Kathryn Korostoff. All rights reserved.
| « Previous Section | Next Section » | ||
| Hiring a Market Research Agency: Managing Your Budget |
|
||
Browse "How to Hire + Manage Market Research Agencies" by section
Intro: Maximize Success: Know The Risks
Understanding Market Research Challenges
Chapter 1: Know Your Goals
Planning Your Market Research Project
Defining Appropriate Goals For Your Market Research Project
Practical Market Research Planning Considerations
Questionnaire Design Risks: The Challenge of Staying Focused
Defining Project Goals Through Questionnaire Real Estate
Chapter 2: Defining Your Project's Scope
Project Scope: Product Concept Testing and Message Testing
Project Scope: Market Segmentation
Project Scope: Customer Loyalty and Win-Loss Research
Project Scope: Brand Awareness and Needs Discovery
Revealing Sponsorship of Your Market Research Project
Planning For Your Target Population: B2B or B2C?
Chapter 3: Considering Internal Audience
Understanding Your Internal Audience: Research Receptiveness
Dealing With Hard-Core Market Research Skeptics
Chapter 4: Leveraging Existing Research
Leverage Existing Research
Chapter 5: Planning Your Agency Relationship
Building a Relationship With Your Agency
Hiring a Market Research Agency: Managing Your Budget
Chapter 6: RFIs and RFPs
The Benefits of RFIs
The RFP: Finding Great Research Partners
A Few Helpful Reminders on RFPs
Chapter 7: Market Research Agency Selection
Tips For Reading Market Research Proposals
Checking Agency References and Follow-Up
How to Check Market Research Agency Credentials
Choosing the Right Market Research Agency
Chapter 8: Managing the Agency
Project Management Planning
Keeping Your Market Research Project On Track
Chapter 9: A Successful Deliverables Strategy
Planning Your Market Research Deliverables
Planning a Great Presentation of Research Results
Presentation Tactics and Options
Other content shared by Research Rockstar LLC
Understanding Market Research Challenges
by Kathryn Korostoff, Research Rockstar LLC
Understanding the risks associated with MR is the key to project success. By familiarizing yourself with the risks associated with MR before beginning any projects, you will know what to avoid, resulting in higher success rates and more accurate research results. Read on to learn about the most common market research challenges. Read Article »
Planning Your Market Research Project
by Kathryn Korostoff, Research Rockstar LLC
While planning a market research project may appear to be a fairly straightforward task, in reality, it takes some real time and effort. Agency selection is one of the key factors to project success, so don’t rush the process. Read on to learn about the timeline logistics of hiring the perfect firm and setting things in the right direction from the start. Read Article »
Defining Appropriate Goals For Your Market Research Project
by Kathryn Korostoff, Research Rockstar LLC
When it comes to defining appropriate project goals, it is best to think in terms of questions or hypotheses. Your golden ticket lies in formulating fewer, “high-level” goals rather than multiple ones in need of conquering. Too many goals dilute a project and increase the risk of failure. Read on to learn how to formulate your goals. Read Article »
Practical Market Research Planning Considerations
by Kathryn Korostoff, Research Rockstar LLC
Prior to conducting any project, it’s necessary to decide if custom market research is truly the best choice. If custom MR turns out to be the best option for your project, the next step is to think precisely about defining project goals. Market research is truly a garbage in/garbage out process; start with clear goals, and your chances for market research success are excellent. Read Article »
Questionnaire Design Risks: The Challenge of Staying Focused
by Kathryn Korostoff, Research Rockstar LLC
One of the main reasons MR projects fail is due to lack of an agenda, or the inability to stay focused on an originally projected design. As more individuals become involved with a project, they bring with them the risk of transforming a once precise questionnaire into an excessively long one with illogical flow. The most important aspects to keep in mind when designing a questionnaire are fit, flow and length. Without these, the questionnaire becomes a burden on the respondents, which directly affects project success. Read on to find out how to avoid the pitfalls of questionnaire design. Read Article »
Defining Project Goals Through Questionnaire Real Estate
by Kathryn Korostoff, Research Rockstar LLC
It is important that everyone on a team understand the primary goals of a market research project. While getting a group of individuals to agree on priorities may be a daunting task, certain exercises such as Chartstorming™ may help you reach a consensus. Read on to learn how to manage your questionnaire real estate through better group collaboration. Read Article »
Project Scope: Product Concept Testing and Message Testing
by Kathryn Korostoff, Research Rockstar LLC
While defining a project scope may seem like a daunting task, it really comes down to two things; knowing you want to get out of your project, and deciding how you’re going to get it. It also helps to know some of the common language used to define market research studies. Read on to learn about product concept testing and message testing. Read Article »
Project Scope: Market Segmentation
by Kathryn Korostoff, Research Rockstar LLC
While defining a project scope may seem like a daunting task, it really comes down to two things; knowing you want to get out of your project, and deciding how you’re going to get it. It also helps to know some of the common language used to define market research studies. Read on to learn about a common project type: market segmentation. Read Article »
Project Scope: Customer Loyalty and Win-Loss Research
by Kathryn Korostoff, Research Rockstar LLC
While defining a project scope may seem like a daunting task, it really comes down to two things; knowing you want to get out of your project, and deciding how you’re going to get it. It also helps to know some of the common language used to define market research studies. Read on to learn about customer loyalty and win-loss research. Read Article »
Project Scope: Brand Awareness and Needs Discovery
by Kathryn Korostoff, Research Rockstar LLC
While defining a project scope may seem like a daunting task, it really comes down to two things; knowing you want to get out of your project, and deciding how you’re going to get it. It also helps to know some of the common language used to define market research studies. Read on to learn about brand awareness and needs discovery. Read Article »
Revealing Sponsorship of Your Market Research Project
by By Kathryn Korostoff, Research Rockstar LLC
Defining your project scope also includes whether or not to reveal the sponsor of your market research study. Read these guidelines for help making this decision based on best practices and common exceptions. Read Article »
Planning For Your Target Population: B2B or B2C?
by By Kathryn Korostoff, Research Rockstar LLC
B2B and B2C research are two very different animals. Which one are you doing? The answer has implications for partner selection, questionnaire design, and sample source options. Read Article »
Understanding Your Internal Audience: Research Receptiveness
by By Kathryn Korostoff, Research Rockstar LLC
There are multiple facets to consider about an internal audience’s readiness for market research. These items range from an audience’s receptiveness to specific techniques, all the way to presentation of data. It is important to take note of the your internal audience’s abilities and preferences to make sure they will be able to receive and apply research results successfully. Read on to learn about aspects to consider when assessing your internal audience’s readiness for MR. Read Article »
Dealing With Hard-Core Market Research Skeptics
by By Kathryn Korostoff, Research Rockstar LLC
While we all hope for an accepting reception from colleagues when it comes to research findings, it’s a rare occurrence for everyone to be on board. Dealing with internal skeptics is no easy task, but a few precautions taken prior to delivering your research findings can greatly reduce disruption risk. Read on to see what you can do to get skeptics on your side. Read Article »
Leverage Existing Research
by Kathryn Korostoff, Research Rockstar LLC
Before you jump into your primary market research head first, it’s important that you first seek out existing, relevant research. This not only saves your organization time, but also prevents wasted funding on a project that would have duplicated existing results. If finding relevant research seems like a daunting task, don’t worry, there are multiple sources you can turn to. Read on to learn how to get started. Read Article »
Building a Relationship With Your Agency
by By Kathryn Korostoff, Research Rockstar LLC
Before you select a market research agency, think carefully about the type of relationship you want. It’s important that the agency you choose can work with your team in a way that will truly meet your needs. There are hundreds of agencies out there; they do not all have the same styles or collaboration approaches. Read on to learn how to build a great relationship with your chosen agency. Read Article »
Hiring a Market Research Agency: Managing Your Budget
by By Kathryn Korostoff, Research Rockstar LLC
Before you select a market research agency, think carefully about the type of relationship you want, especially when planning your budget. It’s important that the agency you choose can work with your team in a way that will truly meet your needs. There are hundreds of agencies out there; they do not all have the same styles or collaboration approaches. Read on to learn how to build a great relationship with your chosen agency. Read Article »
The RFP: Finding Great Research Partners
by By Kathryn Korostoff, Research Rockstar LLC
In many cases, skipping an RFI and going straight to an RFP is an appropriate choice. If you’ve already narrowed your choices to a manageable number of potential research partners (no more than 5), it’s time to issue an RFP. A well-written RFP will result in proposals that will help you choose the best research partner for your needs. Read on to learn about the elements of a successful RFP. Read Article »
A Few Helpful Reminders on RFPs
by By Kathryn Korostoff, Research Rockstar LLC
Documenting your market research in an RFP saves time, energy and money. Some aspects to consider include legalese and deliverables. When looking at the specifics of your market research needs, it is important to consider your internal audience, too. Read on for some practial RFP tips. Read Article »
Tips For Reading Market Research Proposals
by By Kathryn Korostoff, Research Rockstar LLC
Reading proposals can be tricky. Obviously, a market research agency is trying to sell itself to you, so they’re going to represent their abilities in the best way possible. So what can you do? Learn how to read proposals carefully and look out for details that are too good to be true. Be realistic when considering your needs versus an agency’s abilities, and trust your gut. Read on to learn some practical proposal-reading tips. Read Article »
Checking Agency References and Follow-Up
by By Kathryn Korostoff, Research Rockstar LLC
While you should always check a research agency’s provided references, it’s also smart to look for more objective sources who can attest to a firm’s capabilities. In addition, the way in which a market research firm follows-up their proposal submission says a lot about their communication skills and style. Read on to learn about checking market research agency references, and other steps you can take in choosing an agency. Read Article »
How to Check Market Research Agency Credentials
by By Kathryn Korostoff, Research Rockstar LLC
There are literally hundreds of market research agencies from which you can choose. Of course, finding ones that have the right qualifications can be tricky. There is no professional certification required in the field, so you need to do a little work. Read on for some tips on checking potential research partners for appropriate credentials. Read Article »
Choosing the Right Market Research Agency
by By Kathryn Korostoff, Research Rockstar LLC
Once you’ve narrowed your agency choices down to a short-list of finalists, choosing between them can be a daunting task. While it may be tempting to go with the agency offering the lowest price, it’s important to consider other factors, too. Read on to learn some different strategies your organization can use to make the right agency choice. Read Article »
Project Management Planning
by By Kathryn Korostoff, Research Rockstar LLC
Once you’re hired an agency, then what? Well, if you’re looking to reap the benefits of a successful project, your active involvement is necessary. By working closely with your agency, you’ll be able to represent your internal clients’ needs while providing the agency with important direction. Indeed, your involvement can help the agency be more successful. Read on to learn what to expect from working with an agency once you start the project. Read Article »
Keeping Your Market Research Project On Track
by By Kathryn Korostoff, Research Rockstar LLC
Though it is easy to jump to conclusions at any sign of trouble, the important thing to remember is that both you and your agency are working towards the ultimate success of your project. That said, there are legitimate issues that may arise. Luckily, most issues have reasonable solutions—and an experienced researcher will help you navigate them. Read on to learn about legitimate red flags versus project paranoia. Read Article »
Planning Your Market Research Deliverables
by By Kathryn Korostoff, Research Rockstar LLC
When delivering market research project findings, the most effective approach is one that combines multiple forms of delivery. After all, this information is the kind you want retained by your colleagues so they can really apply it. And we all know that delivering a 100-page slide deck just puts them to sleep. Read on to learn more. Read Article »
Planning a Great Presentation of Research Results
by By Kathryn Korostoff, Research Rockstar LLC
Think of your project’s final presentation as more of a performance. Assigning roles and specific duties to individuals keeps the presentation organized and engaging. You want the audience to be attentive, so it’s important to include them. Don’t be afraid to ask questions or start dialogue. Read on to learn about the basics of a great presentation. Read Article »
Presentation Tactics and Options
by By Kathryn Korostoff, Research Rockstar LLC
Imagine it is the end of a market research project, and you are getting ready to present the final results. Are you ready? With a little planning, you will be. The following Q & A answers key questions about presentation tactics to make sure your presentation goes smoothly. Also offered are some alternatives to traditional presentation tactics. Read Article »
