Dos and don'ts for using marketing focus groups
Not long ago, focus groups were a key weapon whenever marketers battled for market share. Companies corralled groups of customers, asked their opinions and plotted marketplace strategies based on the responses.
Nowadays? Focus groups have grown increasingly controversial.
Those in favor insist that hearing multilayered, interactive discussions from real customers still galvanizes a sales force or inspires marketing messages. "Because of the group dynamic, focus groups provide a great opportunity for rich feedback in a relatively short period of time," says Karen Leland, co-author of "Customer Service for Dummies."
Naysayers argue that focus groups have outlived their usefulness because they uncover very little new or useful information. "Respondents have been trained to tell us what they think we want to hear, to analyze our 'strategy' or our 'target segment,'" says Leeann Leahy, director of account planning at Margeotes Fertitta ad agency in New York.
So where's the truth? Between the extremes, as is usual.
Done right, focus groups can definitely help you to market and grow your business. But such groups are only one tool in a wide-ranging kit of marketing tactics. You will also need to harness other marketing research.
So move forward with your focus-group plans. Here are some do's and don'ts for getting results.
Basics of getting started
Focus groups usually consist of eight to 10 participants selected because of particular characteristics or demographics. They might be frequent travelers. Or earn $50,000 to $75,000 a year. Or have teenagers at home. And so on. Events generally run 90- 120 minutes, and are often held in the evening so participants needn't worry about work or child care.
A skilled moderator or facilitator usually leads the group, whether a staff member of the agency you commission or an independent consultant. The facilitator guides the discussion, drawing out peeves, passions and prejudices without making judgments. Most of the time, several groups are scheduled so the discussion is repeated among similar participants. After a few rounds, you begin to notice trends, themes or patterns.
How many groups are necessary is always a judgment call, depending on budget, location and the issues you're investigating. Ask the agency or consultant for advice. Or plan a few and see whether you're satisfied.
As the client, you usually watch and listen in an adjacent room via a one-way mirror.
Many groups are recorded or unobtrusively videotaped for later review. Guests are told about the watchers and recordings but it's done casually, a quick announcement.
Costs vary considerably depending on the agency you hire, the location and your target.
Bank on $3,000 to $10,000 to get the job done, more if you mount several groups in far-flung locations.
How to avoid mistakes
When setting up focus groups, concentrate on these steps:
1. Determine your goals and objectives. Analyze what you want from the experience. Narrow your objectives to a concise written list so the facilitator can "focus" the group whenever they wander off the topic. With help from the facilitator, work on your discussion questions and follow-up points before recruiting. These should be open-ended queries that invite comments.Marketing gurus say focus groups are particularly useful when you are:For example, a recent focus group for a retailer revealed that existing customers were annoyed that new customers were receiving incentives while loyal customers were not, according to Bette Price, management consultant and co-author of "True Leaders." Says Price: "This is an important issue to know about because the research all shows that it costs a minimum of five times more to attract a new customer than to keep an existing, loyal one."
2. Do rigorous recruiting and screening. "The term 'focus group' has been diluted a great deal, with some thinking it's just a conversation," says David Shank, an Indianapolis publicist. But herding some executives into a conference room for a group gripe won't tell you much.Instead, rely on a professional and detailed screener who can gather a truly representative sample of the population you're studying. If your target includes men aged 20-35, then you need many of those male participants in the group."Allow enough time for recruiting and make sure the budget allows flexibility," suggests Bonnie Ulman at The Haystack Group, an Atlanta market researcher. Encourage participation by offering an incentive, be it a free sample, a discount certificate or money. Cash awards run $25 to $150 per person, depending on your target's status. It's also customary to serve snacks or sandwiches as a way to warm up the group.
3. Don't cheap out on the facilitator. Trained focus-group moderators are worth the money they charge. They know how to pose questions that elicit responses. They can synthesize the discussion, playing back opinions to tap specifics behind generalizations. They draw out shy or disengaged participants. And lots more. The biggest mistake clients can make is to be their own facilitator, says Nancy Haynes at Collins, Haynes & Lully Advertising in Charlotte, N.C. She says, "Two places one should never try to cut corners: a focus group facilitator and a surgeon!"
4. Don't expect hard data. Focus groups are categorized as soft or qualitative market research, in contrast to quantitative research that yields hard numbers or statistics. The point is to create a group dynamic. You're paying to get a visceral sense of what a sample of your defined customers think and feel. When successful, focus groups uncover motivations for your target's choices and decisions, which is obviously enormously helpful. But you don't get statistical charts -- just an emotional snapshot.
5. Do listen to the "loudmouth." Invariably, every focus group includes a participant who tends to take over the discussion. This is another reason to have a trained facilitator. Moderators graciously get him or her to back off, giving other participants a chance. Nevertheless, this particular group dynamic is also valuable. "A common criticism of focus groups is that a dominant participant may influence others," says Elaine Ralls, at HMI, an integrated marketing firm in Tempe, Ariz. But "it should be recognized that the same influential patterns occur in the marketplace." You gain helpful insights by observing what the "influencers" in the room do or say.
6. Do remain flexible. The advantage of traditional focus groups over those mounted online or via phone conferences is that you can shift direction quickly. If the group alights on a point or area you want to explore, the facilitator can follow up. Usually, there's a phone in the room or a prearranged signal to contact the facilitator. She or he then leaves the room, briefly confers with you and returns to steer the discussion as you direct.
In summary, for focus groups to be effective, you must plan a solid strategy, hone your questions and objectives, and hire an experienced, veteran facilitator.