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Empanel Customers without Their Permission

 

PanelWe have long advocated to those of our customers who building new panels that they should launch a special marketing campaign to encourage customers to sign up for the panel. Let the customers know what to expect from the panel, how often you will survey them, what you will provide them in return, and how they can later opt out if they ever change their mind.

We were wrong.

Just add all your customers to your panel.

By all your customers, of course, I mean all of your customers. Even those that you don’t have permission to email. Bear with me here.

If you don’t do this, your panel will not be as representative of your customer base as it could be. In the ideal world, every single customer should be on your panel. Then you can conduct true probability sampling.

Listen to what EasyJet, the leading U.K. airline, does. At the Research 2010 annual conference, Easyjet Customer Research Manager Sophie Dekkers gave an Ideas Rush session, covered by MrWeb:

[She] outlined her dilemma of needing to react quickly to market changes, while using her research budget more effectively.

Dekkers explained that, as 98% of EasyJet's customers book online, she has access to a ready-made sample for online survey use. Within 24 hours of rolling out a DIY survey on, for instance, when customers plan to take their summer holidays, she can receive and react to the resulting data.

Do you think EasyJet asked these customers to be on the panel? Of course not. If they did, their panel would have a small percentage of their customer base. Instead, by empanelling everyone, EasyJet is able to use random sampling to develop an accurate understanding of their customers’ attitudes.

And, by empanelling everyone, you can conduct surveys of detailed subsegments of customers as well. With a smaller panel, you’re unlikely to have sufficient sample to do such research.

Formal empanelment is a courtesy you likely can’t afford. And it’s a courtesy most companies are skipping. At one recent presentation, to an audience of about 100, I asked for a show of hands of people who had joined a panel: one person raised her hand. I asked how many had ever received an email survey from a firm they did business with: almost every single attendee raised their hand. We’re all on panels we didn’t opt in to.

Oh, and if you don’t have permission to email a customer, because they have signed up for your unsubscribe list, then only show them survey invitations when they log in to your web site. Integrate your panel management system to your CRM system, which should already be integrated to your web site.

Panels are a rich source of quantitative information, provided they are truly representative of your customers. Adding every customer to your panel is one way to make sure they are.

Comments

Good point, with just one pedantic issue, I would not call the customer list a panel. 
 
A panel, IMHO, is a group of people who have signed up to do quite a few surveys and to have their data stored longitudinally. 
 
Most clients would not permit MR to email their customer databases willy nilly, insight has to compete with other mailing uses, such as selling stuff and making money. 
 
Also, it is worth stressing that EasyJet only email those customers who permissions indicate they can be emailed,and for the purposes that the permissions list. 
 
Customer lists have been used for surveys for many years, including postal surveys and shopping intercepts - but that did not make them panels.
Posted @ Monday, August 16, 2010 7:06 AM by Ray Poynter
Thanks, Ray, and thanks for organizing the Ideas Rush session where Sophie presented. For five minute speeches, they had a lot of impact on me. 
 
Your definition of panel is perfect for access panels (third-party panels), but if I accept your definition then my advice makes no sense: "people who have signed up to do quite a few surveys" precludes adding people who haven't signed up! 
 
To me, a customer list is a static representation of customers, their contact information and business attributes at a point in time. Typically, customer lists are an input to a panel system. 
 
The house panel is a dynamic representation of customers, updated regularly with their current information (what products and services they purchase) and managed as a resource for surveying. This management includes drawing samples from the panel -- organizations with customer lists typically use the entire list for any particular survey; organizations with panel systems can use random sampling when the panel is large enough. 
 
Large enough panels preclude the need for any individual to do lots of surveys -- the size of the panel enables probability sampling to subsets, so that individuals receive fewer survey invitations despite the fact that the organization is conducting more surveys. 
 
For organizations concerned about controlling the overall flow of email communication, panel systems can integrate with the touch management tracking systems used by marketing departments. 
 
Does this distinction between house panels and customer lists make sense to you?
Posted @ Monday, August 16, 2010 7:56 AM by Jeffrey Henning
Well, i'm glad you said bear with me because I nearly had a heart attack. As long as you either 1) have permission to email your customers or 2) have the surveys available on the website I'm ok with this.  
 
I'm not sure how much better the results will be because self-selection is still the primary problem but if the research users are wise in their extrapolations, then it could be a good thing.
Posted @ Monday, August 16, 2010 8:07 AM by Annie Pettit
You bring up a good point, Annie. The email and a series of reminders are as close to external selection as you can get, but participation in the intercept surveys behaves like self-selection. I think the analyst will need to decide how to treat the results from the two sources.
Posted @ Monday, August 16, 2010 8:59 AM by Jeffrey Henning
Interesting article. Contacting everyone on your custumer list versus building a separate panel is good in some ways, very bad in others.  
 
On the one hand, you have a bigger sample size, and regular survey bias can potentially be minimized because customers might not be taking surveys just for a reward, unlike professional survey takers. 
 
On the other hand, as a consumer of many different products and services, I wouldn't want to be bombarded by hundreds of customers asking me for my opinions after purchasing something from them. I would much rather have one central contact for someone to contact me for my opinion - aka a market research company. 
 
Thanks for the new viewpoint.
Posted @ Saturday, September 25, 2010 11:57 PM by Fred Wilson
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