Lessons from the 2010 Honomichl 50
Posted by Jeffrey Henning on Sat, Jun 26, 2010
One of the most talked about topics in the research blogosphere these past two weeks was the publication of the 2010 Honomichl Top 50. The Honomichl 50, now in its 37th year and still compiled by Jack Honomichl, is the Fortune 500 list of market research firms. If you're not on it, though, and don't aspire to be on it, why should you care about it?
Well, the ups and downs of the Honomichl 50 provide an interesting barometer to changes in the research atmosphere. Some lessons we can learn:
- Market research should integrate existing customer loyalty data and help organizations act on the insights from that data. Dunnhumby grew 33% last year with its focus on building customer loyalty, while the overall list saw revenues decline 3.5%. Dunnhumby research begins by analyzing actual behavioral data about customers, drawn from Point Of Sale systems and loyalty programs (member programs). The company does not see itself primarily as a deliverer of research results-it transforms the data into customer insights, then helps its clients act on those insights: first, by identifying where and how to improve the customer experience; second, by helping the organization to engage employees and to identify the systems needed to better serve the customer.
- Online communities are transforming qualitative research. Making the list for the second year in a row, Communispace grew 18% last year, with its focus on building standing communities to engage consumers. Uncomfortable with the whole idea? Communispace co-founder Julie Witts Schlack has your back: You Are Now Leaving Your Comfort Zone: 21st Century Market Research, and Simon Kendrick chimes in.
- Easy ad-hoc research projects are being brought in house. Revenue for firms that conduct ad-hoc surveys dropped 7%. A simple survey project that might have been executed by a research firm in the past is being done more frequently by the end user themselves, often even without the research department's awareness. See Kathryn Korostoff's recent post, Market Research Decentralization: Power To The People.
- Continuous competitive research builds value. Can you provide information on what your competitors are doing or on the state of a market on an ongoing basis? Rentrak grew 22% providing multi-screen audience measurement (box office, DVD, VOD, etc.) while as a whole syndicated data suppliers showed no revenue decline.
And Nielsen, founded by the guy who invented the concept of market share, remained number one on the list for the 36th year in a row. Pretty impressive!
For more, check out these articles and blog posts: