The limitations of survey panels
For many years survey panels were brands' best option for survey-based research. But it is becoming increasingly clear that panels have out-lived their roles and new, innovative approaches to consumer research will become the new industry standard for consumer research. In this post we take a look at why panels do not work anymore and what is next for consumer surveys.
Market research was born using random sampling by addressing consumers of all ages and demographics on the street. Later randomized phone interviews took over. Both methodologies were dynamic, respondent representativity was relatively easy to ensure, and it was in those years that the market research industry grew exponentially with consumer brands.
It all went well until consumers stopped picking up their phones. Their attention had become a scarcer resource and market research became so widespread, the initial excitement about being contacted had worn off. Then, along with the internet, came the earn-as-you-reply survey panels.
But today, panels have a serious challenge when it comes to sample representation: panel providers need respondents to sign up. It is well-known that some demographies are difficult - if not impossible - to recruit to survey panels. Those that do are high-involved consumers which is not representative in the fast-moving consumer goods market.
Meanwhile, a smartphone have become so universal that even in the most remote areas or the most niche target audience, it is the gateway to the world. Apps handle everything from news broadcasting over social media, to grocery shopping, and the selling and buying of stocks. Thus, the universalization of smartphones has led market research into its new era: mobile live sampling.
Mobile sampling takes the best from the early days of market research: recruiting respondents randomized and dynamically, while taking the best from the new world: respondents are recruit-ed through apps and social media.
Sampling dynamically and using instant personalized rewards allows recruiting respondents that no panel provider can reach, even young males, affluent people, vegans, gen Z, consumers in rural areas and consumers in countries where panel providers struggle or are not even trying. Read on to learn how your consumer research can benefit and what to think of when taking the leap into the future.
The evolution of sampling
Why panels do not work anymore
Consumer panels recruits respondents on the promise of influencing brands and earning points to use in a reward shop. This approach worked really well at the turn of the millenium where pre-recruited panels offered a quick and cost-efficient access to consumers.
Since then consumers have changed: attention is a much scarcer resource, instant gratification sets the pace, and consumers are a lot more sceptic about what they sign up for.
That spells out three major challenges for consumer panels:
Many consumer segments are difficult to recruit, not least Gen Z consumers
Even if recruited, Gen Z consumers are difficult to engage and churn faster than previously seen
Rewards are "delayed gratification": they are non-personal, long-term and for some consumers the rewards offered are not attractive enough, while others become "professional panelists" to earn more points to spend on rewards.
The results are (a) that panel providers are having an increasingly hard time to recruit panel members, and (b) that consumer research conducted using panels sometimes suffer from the sheer absence of certain demographics and/or markets. To mitigate the challenges of recruiting and motivating respondents, panel providers sometimes use sub-suppliers to complete a sample, making your data less transparent and - with a potential mix of methodologies - subject to varying data quality.
In addition to this, not all panel providers run systematic data quality controls like checking for duplicates, survey completion time, etc. Thus, some market researchers experience that the data validity is low and some audiences, such as Gen Z, men, affluent people, consumers in rural areas or some countries altogether are difficult or de facto impossible to survey using this sampling methodology.
The problems with panels can be summarized in three headlines:
Lack of audience and market reach
Respondents become "professional panelists" to earn points for rewards
The use of sub-suppliers makes the sourcing of data non-transparent and challenges data quality.
Evolve your market research to the mobile world
The challenges with panels leaves a big hole in consumer brands’ access to valid insights to guide their brands, marketing, and product development.
Fortunately, the solution has already been invented, tried and tested. Moving your consumer research from panels to mobile sampling will provide you with several benefits:
All consumers have a smartphone
A fresh new sample with each study provides you intuitive survey replies
Extensive quality assurance measures mitigate questions from panel traditionalists
Download our guide on how make the leap into mobile sampling right here.
Dive into the future of market research
Download our e-book on how to replace your panel-based research with the future of consumer research: mobile sampling.