SRA Research Group, Inc. -

N E W S & A R T I C L E S

Market Research, Not Just a For-Profit Tool

Barbara L. Allan

In the off chance that there is someone out there that has not gotten the message, “the 90’s are over” and many of the benefits that came with those almost unreal years have disappeared along with it. This is a problem that is most certainly being struggled with in Board Rooms, both for-profit and non-profit, across the country.

Unfortunately, due to the symbiotic relationship that exists between business and non-profit organizations, when the economy slows down for business it can bring non-profit organizations to an almost standstill. And, by extension, this greatly impacts the ability of organizations designed to provide aid and assistance to the neediest members of a town, a city, a nation, and the world. The irony is of course, that during times when the need is the greatest, is also the time when it becomes more difficult to raise funds.

A recent article from The Associated Press reported that they had conducted a “quick and dirty” survey among officials of 126 national charities. Of those surveyed, slightly more than half indicated that donations for were down in 2002 compared to donations in 2001. Furthermore, only about three in ten reported donations were up, with the remaining indicating their financial picture was stable or not yet determined.

Reasons these officials see for the fall off in donations include not only the economic downturn and the stock market plunge, but also the erosion in trust the public has in institutions. This clearly does not portend well for those in need of help.

Some report that the once successful direct mail campaigns are no longer providing the return on investment they once were, leaving some non-profits searching for ways to generate support for their organizations. Charities and non-profits are searching for ways in which to have their appeal heard by the public, and they are sometimes finding that the tried and true methods are not working the way they did in the past.

One approach used by many non-profits calls for blanketing large numbers of homes with multiple requests with the belief that if a sufficient number of requests are sent out eventually the financial goals will be met. However, as many are finding out, this is often not the case. And, unfortunately the cost of multiple direct mail campaigns adds up, only adding to the organization’s woes.
However, before you get your hopes up, you should know that market research is neither a magic wane that can restore health to the economy nor a crystal ball that can reveal when the recovery will occur. Nonetheless, it can be a powerful tool to assist non-profit organizations in understanding how they are perceived by the community, and as importantly by those they want to serve.

Market research can help charities and other non-profits hone in on what messages are most effective in reaching potential donors, as well as, fine tune who is most likely to respond to the request for donations.

It is also important to mention that market research is very effective in gaining a better understanding of how well the programs and services offered are working. In these cases, it is not the donor that is studied, but rather, the recipient of the help.

Naturally, not all non-profits fall into the category of “charity”. Some are linked to governmental agencies, health care providers, and religious organizations. The list of the issues represented by these non-profits is long and includes groups representing all aspects of society including children’s issues, education, the arts, environment, health care, to name just a few. The concern among these non-profits is not always donations, in many cases it is voters support for special issues and projects.

Among these non-profits who rely on tax payers’ money for funding, market research is a good way of bringing an added measure of accountability to understanding which programs should be sponsored. Having statistically reliable data showing constituent’s awareness and satisfaction with services can be vital when an organization is facing potential budgetary cuts.

Often, non-profit organizations are familiar with market research techniques, but are hampered in pursuing an interest in using the skills of market researchers by two myths. One is the old saw “we can’t afford it.”, and the other is, “we already know what our constituents/client base want.”

Both are frequently off the mark. The fact is that by investing in market research an organization can frequently reach their financial goal in less time, as well as structure programs and services that are more efficient, and hopefully more successful. And, in a world that is changing as rapidly as the one we are living in, no one can say with assurance, “I know all there is to know about my customers, clients, or donors.”

Let’s talk about what is usually the first question that clients ask, or want to ask. They want to know the bottom line, “How much will it cost?” Naturally, while there is no one answer neither is the cost out of reach for most non-profits.

The upside of the equation is that time and again, organizations who use market research to help them take the pulse of the community are able to allocate funds where they can do the most good. Additionally, market research should be, and often is, custom designed with no “one size fits all” approach. Effective market research companies always want to know as much as they can about their clients. It is their way of ensuring that the goals and objectives of the client are clearly understood and are the driving force of the research.

SRA’s work with the Children’s Services Council of Palm Beach County (CSC) is a case in point, that illustrates how market research has successfully been used by non-profits.

SRA Research Group has worked collaboratively with the Children’s Services Council of Palm Beach County for more than five years, employing both qualitative and quantitative research techniques to help them become one of, if not, the leading children’s services councils in the country.

The Children’s Services Council of Palm Beach County came into being as a result of a State of Florida initiative that enabled counties to establish special taxing districts for the purpose of providing services to children and their families. The voters of Palm Beach County approved the special tax in 1988.

Initially, the maximum taxing rate was set at a half a mil. Over the next few years the level of services to the county’s families and children expanded, and with it, the need for more money. However, in order, to increase this milage rate, the CSC had to return to the voters for approval.

It was at this point, that the CSC contacted SRA and asked us to help. They believed they were doing an outstanding job of helping children, but the question was did the tax payers agree, and were they willing to support the council by approving an additional tax.

The objectives of the research included measuring measure voters satisfaction with the work of the council, coupled with would they approve increasing the milage rate. The council felt that it was important to know where they stood before putting the question to the vote. They also felt strongly, that if it appeared that support for the referendum was weak, they needed time to mount an advertising campaign to tell their story to the voters.

SRA meet with a committee that represented officials of the CSC, as well as from the Board of County Commissioners, to delve as deeply as possible into all the issues surrounding the need for additional funds. Based on this “discovery session”, SRA designed a quantitative research project that would determine voters perception and support for increasing taxes.

A statistically valid sample was established, which included interviewing an equal number of residents with children at home, and those with no children at home. Additionally, survey respondents were drawn from throughout the county, with quotas proportionate to the population.

Residents were queried concerning their awareness and perception of CSC, as well as the importance of specific CSC sponsored programs. Lastly, survey respondents were asked about their willingness to support an increase in the milage rate, and the likelihood they would vote in the next election. The likelihood to vote in the upcoming election was a key question in terms of conducting a statistical analysis showing support of the referendum.

The survey showed that Palm Beach County voters were solidly behind the CSC, and these findings were proved right on election day, with voters overwhelmingly approving a hike in their taxes.

The support and high esteem county residents had for the CSC as shown by the research, also meant that it was not necessary to undertake an expensive media campaign to urge support for the ballot question. This was clearly a win-win situation, with the big winners, of course, being the children of Palm Beach County.

SRA’s quantitative research projects also include an extensive needs assessment countywide survey conducted on behalf of United Way of Palm Beach, as well as studies on behalf of OMEGA, a group sponsored by the Quantum Foundation, whose mission is to determine ways to improve the quality of life among seniors. The American Lung Association of Southeast Florida contracted with SRA to help them measure students’ perceptions of the Lung Mobile, a program that teaches students about lung disease and emphasizes the health risks of smoking.

However, quantitative research is only one of the tools market research use to help organizations have a better understanding of their target market. Another approach is qualitative research, which while not statistically valid, provides insight into the reasons behind why individuals react they way they do. Focus groups are especially helpful in assessing promotional and advertising materials.

SRA conducted a series of focus groups for the CSC among parents, pediatricians, and kindergarten teachers on the topic of children, birth to five years old; and issues to related to this age group. Another qualitative project commissioned by the CSC was designed to gain a better understanding of what is meant by “parenting”. Ultimately, these projects were developed into a media campaign with the message, ‘babies don’t come with instruction manuals.”

Palm Beach County also is proud of the fact that they have two special countywide taxing districts, one the Children’s Services Council, and the other the Health Care District. SRA was contacted by the Health Care District and asked to help them with the KidCare project.

KidCare, is a State of Florida health insurance plan designed to provide coverage for children whose parents are unable to purchase insurance though other methods. The plan had been in effect for a short time, and though well received, sponsors of the program, The Health Care District of Palm Beach County, felt it could reach more children.

Certainly, the professionals that set up the program knew exactly what the program should include, and they also were very well aware of who their target market was. However, what they did not know was if their target market was getting the message, and if the program was working the way they wanted it to.

This was a situation which clearly called for qualitative, rather than quantitative research. Qualitative research, better known as focus groups, was the ideal tool. SRA recruited moms (since in nearly all instances, it is the mom that handles the health care concerns for her family) to attend a focus group session to discuss Florida KidCare.

Two focus group sessions were held. SRA recruited Moms for both groups who had the same demographic profile, with one group of moms who had children enrolled in the program and the other group, among moms whose children were not enrolled.

The results were startling, showing that awareness of KidCare was very strong among both groups, but that parents who did not have children enrolled in the program were not as trustful of KidCare as their counterparts who were participating in KidCare. Other issues that surfaced revolved around the timing of notifications of acceptance, and a strong dislike for voice mail.

Parents were also shown posters and ads used to help promote KidCare and asked for their reactions. The moms overwhelmingly felt that the ads should be stronger on information and use less candy coating in the message. Further, they felt that some of the ads with their use of music linked to children’s shows were therefore geared for children and consequently when they were run on television or radio they did not pay attention to them.

Again, the research efforts resulted in a win-win situation. Brochures and posters and television ads were revamped. Parents became better informed about the program, and more important one of their worse fears, not being able to provide health care for their children, was eliminated.

Stories that have a happy ending are the favorites of many. And, these are two examples of happy ending stories. Both are instances where market research was able to provide a non-profit with data that helped they provide greater service to the people they most want to help.