Benefits of Online Panel In Market Research Industry

Companies today use market research to identify their key markets, understand where they are positioned in the market and determine future strategies. One of the most important tools available is online panel companies which allow for better quality data collection with smaller margins of error than traditional focus groups or surveys which can take years to design, field and compile results. With an industry size of $3 billion globally, there’s still room for growth as approximately half of all survey research budgets go unspent every year.

One of the main reasons why online panels are becoming more popular is that it offers access to people that would otherwise be hard to find. The Internet provides a platform for representative samples that were never before possible at this price point and speed. Another reason is the ability to more carefully balance panels so that researchers can conduct studies with “true” random samples.

While online research offers many advantages, it is not without some challenges since you are dealing with humans who can be unpredictable. As an example, online communities bring together individuals who enjoy participating in formal and informal conversations about their interests on the Internet. These groups vary widely in size, demographic composition and motivations. You should consider that these factors may impact your results; however, this allows for targeted market research that would otherwise be impossible to obtain using traditional methods. The key difference between online communities and social media sites like Facebook or Twitter is focus; while large social networks allow users to voice opinions on all kinds of subjects (promoting the generation of high volumes of data), online communities allow members to create groups based on specific interests and concerns. This provides better insight into the thoughts and attitudes of these individuals about specific products, services or market research topics.

Online panels can provide significant cost savings in data collection and management and has allowed for more efficient analysis than traditional methods which were time-consuming and expensive. Market research companies today are utilizing social media platforms like Twitter, Facebook, Instagram and Pinterest to reach new customers making it an effective tool for collecting information on attitudes toward a brand or product. With this shift comes a need to measure the effectiveness of campaigns on these new channels so that you get true ROI instead of simply measuring impressions; measurement tools such as monitoring hashtags on Twitter are available to help you accomplish this.

With the low cost of data collection and the large sample sizes that can be collected, online panels provide an excellent way for companies to measure sentiment (positive or negative) in a fast and effective manner. This is particularly important when it comes to new product launches, conducting risk assessments for new business ventures and gauging market penetration. It also allows customers to compare their own opinions about a given topic with those of general population reducing risk by considering potential issues in advance. For example, if your product is likely going to cause controversy due to its nature or background (think: tobacco industry), then using an online panel could reveal how people feel before the product hits store shelves so you can adjust accordingly. The move from traditional to online research provides a wealth of opportunities for your business to better understand the market, how it is evolving and make crucial decisions based on this information.