Todd Hollander Market Research

Previous Steps
1. Determine Objectives
2. Select a data collection method
3. Get buy-in from managers 
4. Develop the process 
5. Create a schedule 
 

Step 6: Select a supplier

In Step 5, you created the schedule that will serve as the roadmap for the for the employee survey project. This is how to tackle the first five activities on the schedule and select a supplier for your survey.
 

1. Identify possible suppliers

If you already have one or more preferred suppliers, this step may not be needed. If you don’t have a short list yet, you need to create one. The quickest and most effective way to develop the list is to: 

• Ask for referrals from people you trust
• Search the internet for “employee survey provider”; “employee survey expert”; “employee survey company”; “employee survey consultant”; etc.
• Submit a Request for Information (RFI) to companies that appear to be good prospects
   

2. Request quotes

It is often assumed that a Request for Proposal (RFP) is the proper way to communicate with potential suppliers. However, at this point, unless you already have a preferred provider, an RFP is overkill. Instead, you should use a Request for Quote (RFQ). This is a much simpler document that enables suppliers to quickly provide the information you need to narrow the field. For more information about this useful tool, see "How to engage market research suppliers in the planning of your research - a Win-Win approach."

3. Review quotes

Assess the information provided by the suppliers to narrow the list to a select group of two to four candidates from whom you will request a formal proposal.

Bottom Line

Selecting the supplier for your employee survey can seem like a daunting task. Following this 5-step process will enable you to make a timely and informed decision.

When a company begins to explore the possibility of conducting a market research project, it is frequently assumed that the first step is to send a Request for Proposal (RFP) to market research suppliers. In reality, during the intial phases of scoping a possible project, the RFP is usually the wrong tool both for the research buyer and for potential research suppliers. Here’s why:

An RFP carries an implicit assumption that the project has been approved and budgeted, and that the company plans to award the project to one of the recipients within a reasonable period of time. Therefore, it is improper (some would say unethical) to submit a Request for Proposal when the project has not been approved and budgeted. Yet this is precisely what many companies do. Why? Not because they are unethical, but because they are unaware that there are other types of requests that can be made of research suppliers prior to submitting a formal RFP.

In short, the RFP is the wrong tool to use when what you really want to know is:

• What types of research services are available to address my needs?
• How much would it cost?
• How long would it take?

To answer these questions, you need to know about two alternatives to the RFP: the RFI and RFQ.

So for those who seek information from a market research supplier, here is a brief overview of the three major types of requests available to potential research buyers: Request for Information (RFI), Request for Quote (RFQ), and Request for Proposal (RFP). In order to get the information you need from suppliers while establishing or maintaining credible relationships with them, it is important to understand the differences, applications, and assumptions of each type of request.

Three Types of Market Research Requests

1. Request for Information (RFI)

A Request for Information (RFI) is used when a research project is being considered and scoped. At this stage, the objectives of the research have been established, but the methodology and budget have not, and final project approval has not been granted.

The RFI is used to solicit recommendations from a potential supplier about services that would meet the buyer’s research needs. It generally requests:

• A recommended method of achieving the research objectives
• An estimated price or price range
• An estimate of the amount of time required to complete the research

An RFI can also prove useful in making an initial assessment of the capabilities of a potential supplier. Unlike an RFQ or RFP, an RFI carries no assumptions of the likelihood of the buyer to commission the project. Suppliers understand that the RFI is not an invitation to bid, is not binding on either the buyer or seller, and may or may not lead to an RFP (or RFQ).

2. Request for Quote (RFQ)

A Request for Quote (RFQ) is used when the research methodology (online survey, focus groups, etc.) has already been established but the budget and/or research supplier has not. At this stage:

• Detailed project information is not needed from the supplier (usually because the specifications of the research have already been determined).
• Information about the supplier’s ability to provide the research is not required (either because this has been established previously or will be included in a subsequent RFP).
• Price is the main or only factor in determining whether the project will be funded; or
• Price is the main or only factor in selecting the supplier (or determining which suppliers will receive an RFP).

Often, an RFQ is used for the buyer to make a Go/No Go decision about the research project. Suppliers understand that if the project is approved, the RFQ will lead either to the awarding of the project to one of the recipients or the submission of a full-blown Request for Proposal.

3. Request for Proposal (RFP)

A Request for Proposal (RFP) is used when the project has been approved and budgeted. The RFP is an invitation for research suppliers to submit a detailed proposal on a specific research project that the buyer plans to award to one of the recipients within a reasonable period of time.

The RFP should include detailed information about:

• Why the research is being commissioned
• Specific objectives of the research
• How the research results will be used and by whom
• The contents of the proposal to be submitted, such as
  • Methodology
  • Timeline
  • Price
  • Key Personnel
  • Qualifications and Experience

Suppliers understand that the RFP will lead to the awarding of the project to one of the recipients. Therefore, an RFP should only be submitted when the project has been approved and budgeted.

The bottom line: If you are scoping a market research project, a Request for Proposal is usually the wrong tool for gathering the information you need. Understanding the other options - the Request for Information (RFI) and Request for Quote (RFQ) - will ensure that you have the right tools in your toolbox. Using the right tool at each stage of the project development process is a Win-Win approach for your company and potential research suppliers.