How to Get Customer Input On a Budget: The New Focus Groups: Online Networks

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Today’s Wall St. Journal has an article about how big companies are using online networks of loyal customers to gain valuable insights. They are used for collecting customer opinions on ads as well as new products.  I think there are great ideas here for small companies putting together lead generation programs.

Del Monte Foods established an online community, “I Love My Dog” which helped them launch a successful new product, Snausages Breakfast Bites.  This private, online community is made up of 400 handpicked customers.  Del Monte uses the group, according to WSJ, to build buzz, create products and test market campaigns.

This trend started with technology and videogame companies first. See my earlier post here about how Motorola, Chordiant Software and others shortened research time to determine features for new product releases.

The online groups are proving to be less costly and more effective than in-person focus groups or phone surveys.  Key reasons for this are outlined by the article:

  • Companies draw on the participants in a much broader and deeper way than in the offline world
  • The online groups become more than a one-time, 3-hour focus group; the company develops a relationship with the customer-participants

Sylvan Learning got useful direction for a television commercial from a group of mothers they worked with in an online community.  Sylvan found that the moms thought the more compelling message was the success children can have from tutoring instead of the struggles they face in school.

Now most small companies are not going to be creating TV commercials—but there are some useful ideas here I think.  If you are a small company on a budget, an online, invitation-only community could give a big boost to your product, service or lead generation programs. Here are my recommendations:

1.Start with a small group of customers. I like 12 customers. Invite your most loyal customers to participate in an online community. Think of the community as the ‘new’ customer advisory board.

2.Create an online community on a budget. Use Typepad or any of the other blogging programs that allow you to password-protect the blog.

3.Pose questions to the community. Ask for input.

4.Start with a small program—maybe your ideas for an upcoming lead generation promotion. Test your top 2-3 ideas. Explain your ideas. Find out what is compelling to the customers.

5.Share your plans for a new product release or new service. Nothing proprietary—just enough to preview the plans and let the community give you feedback.  Most customers love being on the “inside” when it comes to new products, programs.

The benefits of the online community are that your customers can login whenever they have a few minutes. In my experience, the time you spend getting feedback and ideas from customers is worth 100 times any other activity.  Here is link to complete Wall St. Journal article.

Has anyone had luck (or not) by asking for customer feedback on plans for lead generation programs or new products/services?

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