Is MR at the beginning of a recovery?

[Simon Chadwick]

Is it just me or do I see small green shoots of recovery in the research industry? Certainly, it seems that, if you are innovative, have a defined specialty and are focused, business is coming back strongly. If you are undifferentiated, though, life may be tougher.

What's your experience?

[Ray Poynter]

Hi Simon, I think it is an offset issue. Companies that would in a normal year have been growing at 10% a year are, IMHO, currently declining at about 10% a year. Companies that because of their innovation and newsness were growing about 30% p.a. are just about growing. And the ones with something really exciting to offer, would have been growing very, very strongly and are instead simply growing strongly.

The two big negatives that are still out there, ready to hurt companies, are a) clients going bust (or gaining Chapter 11 protection) and b) large contracts which are due for renewal over the next 6 months.

[Simon Chadwick]

You may be right, Ray - I have heard from some that just being flat this year will be a victory. However, it is encouraging that there are companies out there that are experiencing a return of growth - that's a difference on the last few months.

[Hy Mariampolski]

Hello, Simon -

It's all in the timing, I fear. We've heard the words "delayed" and postponed" more than ever this year. The inquiries are coming in but everyone seems to be afraid to move. There's no cost to skittishness and sitting on your hands.

Best regards,

- Hy

[Simon Chadwick]

Hello Hy!

Delays and postponements are indeed typical - as is price shopping. Would be glad to hear of anyone else's experience thus far.

Simon.

[Paul Hutchings]

How many times over the next year or two are we going to see green shoots of recovery? We're on a rollercoaster and it's going to be up and down. I detect some optimism currently but we're in a company with 2 people so hard to get a clear read. Colleagues with sexy tools seem to be doing well. We have seen a steady increase in the number of supplier calls and now, an increasing number of speculative calls about employment.

So I'd add rising unemployment to the big negatives. When that really starts to bite it'll trample all over the green shoots. I'm looking forward to a quiet summer!

[David Howlett]

My view is that a lot of clients have retained budget levels of previous years, but they're either under orders to spend slowly, or they're making up their own minds to spend less, prevaricate a bit more, and of course, beat down prices. Definitely agree with Ray about the off-set effect. Twas ever thus. Last year we participated at the Richmond Events MI Forum and got luke warm response to a broad, standard market research offer. This year, in tougher times, we got a great level of interest for something far more focussed and innovative. Generally, there was a buzz about the event, although several acknowledged business is tight. Marketing in a recession is the same as marketing in good times really - just a lot more important, and harder work!

[Steve Gentile]

Hi Simon - although the seemingly endless tales of "delayed" or "put off" have become the easy battle cry, it is surely a time of rethinking methodology and approach when it comes to research. Not only from the end client side but also from our side as supplier. It's about having the ability to rethink without over thinking, and recognizing that sometimes, research DOES have to occur.
There are signs of renewed optimism from the communications companies. And with that, research should not be far behind. Know what you do, be solid about your offering, and deliver immaculate research that's on point - you can't miss in any economy.