A look at the pros and cons

Editor’s note: Trudy Ann Brandenburg is marketing specialist, PCIO market research, Nationwide Insurance, Columbus, Ohio .

“Trudy, do you think you should moderate these focus groups or should we hire a vendor?” As a trained and certified focus group moderator at Nationwide Insurance, this is a common question for me.

Knowing that other companies ask the same question of their internal moderators (and having been invited to speak on the topic at two research conferences), I was prompted to conduct some research of my own. I set out interviewing several types of market research professionals including internal, corporate moderators who work with vendors and those who have worked as vendors themselves. Several key findings and confirmations surfaced.

Moderators have a vital impact on the focus group project, from the initial consultation with the client, writing the screener, coordinating or actually recruiting participants, writing the guide, moderating the groups, to finally presenting the findings.

When a focus group moderator is needed, several questions must be answered:

  • Can an internal moderator better serve the client?
  • Are the desired participants employees of the company, customers or consumers?
  • Can an internal moderator lead the group without adding bias?
  • What are the logistical considerations (budget, access to the focus groups, audio and visual recording)?

Internal moderators

A corporate employee focus group moderator is most often the best choice when conducting employee or corporate-related focus groups. Recruiting is easy, inexpensive and convenient. The groups can be held onsite or over the telephone with the internal moderator facilitating the call, significantly reducing costs.

Internal moderators can often discover nuggets of information that an outside vendor may miss. I have conducted several focus groups with consumers, customers, employees and agents about issues specific to the insurance industry or company. My 13 years with the company often allow me to dig deeper into the comments of participants and uncover useful information that my client may not have thought of at the outset of the project.

For example, while moderating a focus group with employees about improving employee benefits, one participant made a passing remark about an area of the building. Knowing the specific area of the building and discussing it further with the group helped me deliver additional information in the final report. Based on the information, my client implemented the change in the building area which had previously never been a consideration. An outside vendor, lacking knowledge of the building area, would have been unable to probe into the comment.

Occasionally, I work with internal clients on other projects prior to their becoming my client. This is often helpful as I am already familiar with the areas they work in, allowing me to know more about their information preferences, needs and expectations. Prior work with a client often helps me write a more focused report on the findings.

And, since both client and moderator work in the same building or complex, they can work more closely throughout the course of the project, which can help the internal moderator provide more actionable information.

Depending on the project and budget, internal moderators may be appropriate to moderate consumer and customer groups. While a vendor facility may be chosen to recruit participants and be the location for the groups to be held, an internal moderator may not only be more familiar with their client, the industry and the company but can also eliminate external moderator fees.

Finally, it is important to keep in mind that information delivery is just as important as acquisition. The internal moderator usually has a better understanding of the company and its nuances and the industry in general, and really knows the client’s needs and the communication and report formats the company uses. This may not only save time from possibly having to rewrite a vendor’s report but also allows the results to be delivered in the most useful and internally-preferred format.

Set of challenges

However, choosing an internal moderator can present its own set of unique challenges. Clients who are top executives within a company may try to control the moderator and the focus group project or set the tone for the results. An internal moderator must possess the skills to deal with political issues from the onset of the project and be able to deliver the findings diplomatically.

Not only have I sometimes previously worked with my clients, I sometimes know the participants. When this happens, it is imperative that it does not impact the dynamics of the group.

Recording and observing internal focus groups can also be problematic since most of them are held in a conference room rather than a facility with professional recording and behind-the-glass viewing. I often audio-record internal focus groups on a hand-held recorder. In addition, it is important for observers to sit in the back of the room as much out of the participants’ sight as possible. Participants, who are often employees or agents, may be somewhat intimidated with executives in the room. If the observers are out of their sight, the participants are more likely to speak candidly, especially if they have something they may view as negative to say.

It is in a company’s best interest to maintain trained moderators on staff even if they do not moderate groups. Staff moderators understand the focus group process and can work with an external moderator throughout the project and act as the project liaison between the internal client and the vendor. Internal moderators can also analyze vendor reports and distribute information appropriately within the organization.

External moderators

External moderators are extremely valuable in gaining insights about customer and consumer attitudes. They may be more capable of looking at the project from different perspectives mainly because they are not attached to the company in any way. They also may offer different focus group techniques based on their experiences with different types of groups in different industries.

Professional focus group facilities offer consumer screening and recruiting services as well as moderators. Using an external moderator allows internal personnel to work on other projects and could actually reduce company travel and expenses.

Recording and viewing the focus groups are also much easier at a professional facility than the conference rooms that are often used when groups are held by internal moderators at company sites.

Working again and again with the same external moderator can create a valuable consultant relationship. In time, the moderators become more familiar with the industry, the company and its information preferences, which enables them to deliver more targeted findings.

Need for both

There is clearly a need for both internal and external focus group moderators. While internal moderators may offer more depth because of their knowledge of the company and industry, an external moderator and focus group facilities may be best when you need an outside perspective, assistance with screening and recruiting, and professional recording and viewing capabilities.

Corporate market research departments that offer their clients both professional internal and external focus group moderators are in a better position to provide world-class service to their clients. Internal or external, every moderator’s job is to acquire quality information and deliver it in a manner that is most useful to the client.