Syntax
Literate: Jurnal Ilmiah Indonesia p�ISSN: 2541-0849
e-ISSN:
2548-1398
Vol. 7, No.
10, Oktober 2022
Balqis Zainuri
Institut Teknologi Bandung, Indonesia
E-mail: [email protected]
Changes in market behavior, technological advancements, and increasingly fierce competition have pushed NIQ as a marketing research company to face challenges in data collection. The ever-evolving needs of clients in various industries, as well as the increasing complexity of survey criteria and data, result in projects with non-BAU methods at NIQ. The main objective of this study is to analyze and implement the digitalization strategy. SWOT and TOWS analysis are used to determine NIQ's corporate strategy, based on current internal and external factors. The application of CEM in this research includes Kotler's 5 A digital customer experience: Awareness, Appeal, Ask, Act, and Advocate. For SCM, references are used from alternative methods that have previously been run by NIQ during the Covid-19 pandemic. Finally, innovation management theory is used as a reference to implement digital survey strategies. From the results of the analysis of these variables, it was revealed that social media is one of the most popular platforms for potential respondents for digital surveys, both in increasing respondent awareness and as a forum for interaction between potential respondents and NIQ to get a good customer experience. In addition, it was concluded that the best and most feasible approach currently carried out by NIQ for digital surveys is through the respondent approach using the Datalake system, which is a database collected by NIQ from all previous studies and new respondents with appropriate criteria.
Keywords: Digital survey strategy, Digital marketing Framework, CEM, SCM, Innovation management, Incidence rate.
The market research
industry globally, including in Indonesia, is always growing every year to
become a vital support in corporate decision-making strategies in various
industries. According to Philip Kotler, "Marketing
research is systematic problem analysis, model building and fact-finding for
improved decision-making and control in the marketing of goods and services.�
The methodologies used
in market research consist of quantitative and qualitative data collection done
through a
survey, group discussion, IDI, observation, etc. In the past, with various
limitations to data collection, a company required considerable effort in terms
of resources and budgeting, therefore many companies used third parties in the
form of market research agencies to conduct market research for their
companies� objectives. This becomes the reason to make market research
companies grow. Not even a few market research established the international
market to meet the needs of their clients. Previously, data collection was done
traditionally. For example, running a quantitative survey using a pen and
paper, which then inputted the data into data processing software, and then
processing the data to be presented to the client needs more than 2 weeks to be
complete and present to the client. The following is the flow carried out in
conducting a quantitative survey for products with an incidence rate in the
market of more than 30%.
However,
high technology development has had a significant impact on the flow and
methodology of market research whereas currently with the internet and social
media, data collection by various parties is easier to do even though the level
of accuracy and validity of the data is still a major issue. Clients
increasingly want all processes the traditional way to move to digital so they
can cut time and costs more but with still good quality data, so they start
looking at companies that own and process big data to conduct their market
research and this is a threat to current market research agencies for their
business sustainability.
There are several reasons why NIQ still uses traditional methods for
data collection methods: (1) Methodology of proportional randomization
distribution can only be done by using traditional methods. (2) Not all the
respondent criteria needed by the client can be searched using big data or
searched online. (3) With the limited of online panel users, the quality and
validity of the data if the data collection method is done online are not
believed to be better.
With the summary background above can be seen that several potential
issues can be investigated more deeply to produce a solution and recommendation
for NIQ. One of the important issues from the results of the analysis above is how NIQ competes with the emergence of
digital data collection companies and technology and NIQ's strategy to continue
to survive and increase company profits.
In addition, currently, many companies are reviewing their customers
using their internal big data because they are considered to provide more data,
at a faster time so they are slowly starting to leave traditional market research activities. One article on
Bigbox.co.id states that there are at least 7 companies in Indonesia that are
currently successfully implementing big data solutions for their businesses,
Netflix, Starbucks, Amazon, Gojek, Traveloka, and OVO. These 7 companies are
potential clients for NIQ but NIQ now has to innovate and create new strategies
on how to provide services to them with the advantages that NIQ has that these
companies may not have and can do.
Based on the research question above, the objective to be answered in
the final project are: (1) Identify factors that can reduce the decline rate to
participate in digital surveys. (2) Approach to obtain more accurate incident
rate data to determine more precise operational costs. (3) Identify the
required digital strategies to minimize or eliminate excessive operational
costs and maximize revenue, particularly for high-complexity projects at CI
NIQ.
As mentioned above, the final project will only focus on the
customized intelligence business in NIQ or previously known as consumer insight
(CI). The strategy that will be proposed later is the result of gathering
insights in aggregate from internal and external stakeholders who are directly
involved with CI NIQ Indonesia's business by considering the company's current
condition.
This final project
entails a thorough exploration of the research methodology utilized to tackle
the research questions at hand. The primary objective of this project is to
present a strategy proposal to CI NIQ, aiming to digitize the data collection approach
as a means of addressing existing business challenges. To delve into this
matter comprehensively, the chapter will be subdivided into three sections:
Research design, Data collection methods, and Data analysis methods.
In this research, a mixed
methodology will be carried out using quantitative studies and qualitative
studies. Quantitative studies will focus on collecting data which will then be
analyzed for decision making and Qualitative studies on the other hand (Phrita
Bandari, 2019). This research will use a qualitative study to dig deeper into
the perspective of internal stakeholders, aiming to identify the underlying
causes of current problems and explore potential solutions. Later IDI will be
the method used in this qualitative methodology.
The data collection for this survey will
align with the specific requirements of the research questions. An online
survey will be employed using a quantitative approach to identify the factors
influencing individuals' inclination to participate in digital surveys and
mitigate rejection rates. Additionally, a qualitative method will be utilized
through In-Depth Interviews (IDIs) to gather extensive insights from relevant
stakeholders.
In the
Quantitative survey, data analysis will be carried out using descriptive
statistical methods which are methods that help describe, show or summarize
data constructively. This method refers to statistical descriptions that help
understand detailed data by summarizing and finding patterns from certain data
samples. Through samples, you will get absolute numbers that do not necessarily
explain the motives or reasons behind the numbers. That's why we need an
inferential method for further analysis. The purpose of the descriptive method
is to describe a problem clearly, accurately, and systematically based on the
facts in the field. Of the two descriptive statistical methods, this research
will later use a comparative method to see which of each variable exists which
then becomes important to be used as a reference in finding solutions and
making company strategies.
In the
qualitative survey, the data that has been obtained after IDI will be analyzed using
a narrative analysis method, that is, a method that focuses on conveying ideas
to all relevant parties. Discourse analysis techniques focus on the social
context in which communication occurs between respondents and researchers. The
use of this technique can help in understanding company culture and is commonly
used to develop business strategies in companies.
Results and Discussion
The subsequent section explores the most effective strategy for determining a valid IR (Incidence Rate) value, which serves as the foundation for assessing survey complexity. Finally, the last part of the chapter delves into identifying suitable digital survey innovations for CI NIQ based on the outcomes of their customer experience management (CEM), supply chain management (SCM), and IR determination strategies. The aim is to assist CI NIQ in reducing or minimizing the operational budget excess that has been experienced thus far.
By
integrating the analysis above, the research questions outlined in Chapter 1
will be addressed, serving as the foundation for formulating the strategy in
the concluding chapter.
A. Strategies for determining valid incidence
rate in CI NIQ
The strategy to obtain valid incidence rate
values is carried out by conducting an IDI (In-depth Interview) with relevant
stakeholders, namely:
1. Senior end-to-end Project Management (Senior E2E
PM). The project management role is responsible for managing all aspects
of project activities from costing, set-up, execution, and data quality to end
deliverables. Ensuring that projects are completed within established budgets,
parameters, schedules, and quality standards. A proactive approach to address
potential operational risks with a mitigation plan in place to ensure we
deliver on all our project commitments and drive high client satisfaction.
2. Senior end-to-end Project Coordinator.
Working alongside Project Managers, this role is responsible for planning and
executing project activities to ensure timely, efficient, and high-quality
deliverables. Ensuring that project instructions and standard operating
procedures are implemented at every project. Adding value by offering
recommendations and suggestions for improved current and future projects
execution and delivery.
3. Senior Manager - Client Service.
Client Service professionals are responsible for developing and nurturing
relationships with clients. This includes understanding their needs, addressing
their concerns, and ensuring client satisfaction. They help clients understand
market trends, consumer behavior, and competitive landscapes through data
analysis and reporting. Supporting clients in utilizing research tools. Collaborate
with internal teams; research analysts, data scientists, and project managers
to ensure client projects are executed smoothly. Communicate client
requirements, provide feedback, and coordinate project timelines.
Each team above is given several questions
related to current issues regarding invalid incidence rate figures that lead to
project execution not being smooth and significantly impacting actual costs
that exceed the budget.
The questions are divided into two parts. Part
1 consists of specific questions related to the role and expertise of each
division, while part 2 consists of general questions related to strategies that
can be implemented to obtain more valid incidence rate values during the
costing stage.
Table 1
List Questions
List of Questions |
Stakeholders |
PART 1 |
|
How is IR currently
determined in the costing process? |
Senior E2E PM |
What is the costing
process for projects with low IR? |
Senior E2E PM |
Are there any other
teams involved by the project manager when doing cost to obtain the
appropriate IR values? |
Senior E2E PM |
Is there any backup
plan prepared by the project manager when doing costing for projects with
challenging IR criteria to ensure smooth fieldwork without any obstacles? |
Senior E2E PM |
How does the field team
support the project manager in achieving the desired IR values based on the
actual field conditions? |
Senior Project
Coordinator |
How is the contact
sheet recorded to obtain the IR value for a project in the current fieldwork? |
Senior Project
Coordinator |
What are the challenges
faced by the field team in implementing the contact sheet recording to ensure
valid IR values? |
Senior Project
Coordinator |
If there is a
significant difference between the IR value initially estimated during
costing and the one observed in the field, what is the current biggest
impact? |
Senior Project
Coordinator |
Do clients usually
provide an incidence rate value in the project brief for costing purposes? |
Client service |
Is there a standard
procedure followed by the client service team when requesting costing from
the project management team to obtain valid IR information during costing? |
Client service |
If there is no valid
incidence rate available as a reference, what does the client service team do
to ensure that the price provided to the client is valid and feasible for the
operations team to implement? |
Client service |
PART 2 |
|
Is IR a significant
factor in determining the budget? |
ALL |
Is IR also a
significant factor in the actual project expenditures? |
ALL |
What is the best/most effective
strategy that NIQ needs to implement in determining the IR? |
ALL |
B. Strategy Incidence Rate by Senior E2E PM
Here is the answer from the in-depth interview
with the Project Management team, which has a role in determining the budget
and timeline to be given to the client service team.
1. Proses
Costing.
The PM team does several things when
initially receiving a brief from the client service team to determine the
incidence rate as a reference. Here are some of the process steps that are
undertaken:
a. Desk
research
b. Check
previous projects that have been done before.
c. Quick
incidence check with the field team.
d. Searching
for data sources through data.
If we cannot obtain the appropriate
numbers thus far, the project management team will make predictions for the
incidence rate using assumptions.
2. Effectiveness
of IR values for budgeting determination.
Incidence rate is used by the costing
team to determine the ease or difficulty of finding the desired respondents
during fieldwork. As a result, the project management team uses it as a
determinant for budgeting operational costs.
3. Involvement
of other stakeholders in determining IR during costing.
As previously mentioned, when PM is
creating costing and needs to know the IR values, PM involves other stakeholders
in CI NIQ such as the commercial team, data science team, and field team.
Additionally, outside of CI, it is not uncommon for the PM team to connect with
other business units such as Retail Management and Consumer Panel Service
Management to obtain data references for determining IR.
4. Backup
plan prepared by the project manager in costing.
As a standard practice, for certain cost
components in operations, a 5%-10% increase is allocated as backup costs in
case of significant changes in criteria, specifications, or survey methods that
highly affect the IR. However, according to the PM team, it is often observed
that the actual budget overruns for operation can exceed 10% for certain cases.
C. Strategy Incidence Rate by Senior Project
Coordinator
Here are the results of the analysis from the
in-depth interview process with the Senior Project Coordinator, who is heavily
involved with the field team.
1. Determination
of IR data through field data checking.
According to current global regulations,
the field team is required to always fill out contact sheets, which will serve
as a reference for the actual IR values in each ongoing project in NIQ.
However, to obtain an ideal contact sheet, if the team conducts traditional
survey methods, an additional budget is needed for interviewers to fill out the
contact sheets.
In practice, when interviewers are in the
field, they already have productivity targets to meet, so adding the task of
filling out contact sheets can slightly decrease survey productivity and is
often not performed by interviewers.
Therefore, according to the Project
Coordinator, valid data from the field cannot always be used to provide PM with
valid IR references. When supporting PM in determining IR, once again the
Project Coordinator relies on previous project experience for estimation.
2. Recording
Contact Sheets in current fieldwork.
As mentioned earlier, under the current
global regulations, the field team has an obligation to record contact sheets
for each ongoing project, with the aim of using them as a more valid reference
for IR values. The reality, according to the Project Coordinator, is that
interviewers cannot focus on doing this task without additional costs for
recording contact sheets.
The standard practice in projects that
already have contact sheet recording from the beginning is to increase the cost
by 20% for interviewer fees and respondent gifts. However, according to the
Project Coordinator, a 20% increase is still not significant enough to motivate
the interviewer team. Based on research and previous experience, the Project
Coordinator suggests that an ideal figure to motivate them to record contact
sheets more compliantly and validly is a 50% increase in interviewer fees and a
20% increase in respondent gifts.
3. Challenges
faced by the field team in recording contact sheets to obtain valid IR values.
The biggest challenges for the field
team, aside from decreased productivity impacting interviewer costs, are:
a. Ease of recording and lack of standardization.
Currently, CI NIQ utilizes an external platform called Survey to Go (STG),
where each survey recorded incurs a cost of $2.5. If all contact sheets need to
be recorded within STG, the licensing cost would increase and be unlimited, as
contact sheets need to record all respondent data that does not meet the
criteria in each PSU. This would significantly increase operational costs. To
avoid such high costs, the actual recording is currently done using paper and
pencil (PAPI), and then inputted by the interviewers into MS Form (Microsoft
Form). However, this approach is not ideal as compliance among interviewers may
vary.
b. Lack of standardized recording across projects. As
mentioned earlier, according to the Project Coordinator, the lack of
standardization in recording and the use of MS Form in each project creates
difficulties in analyzing the IR values at the end. This lack of
standardization is further supported by the differences in each project. The
Project Coordinator finds this quite challenging and hopes for better and
easily adaptable tools for the CI NIQ operation team, enabling interviewers to
make easier contact sheet notes and provide more valid IR values as support to
the PM team.
4. Impact
of significant changes in IR values in costing vs actual.
When the IR values change significantly
according to the Project Coordinator, between what was initially costed and the
actual values, the biggest impact is on the timeline due to the change in field
productivity. This in turn affects the daily payments made to the interviewers,
which can increase and ultimately have a major impact on operational costs. As
mentioned above, the OPE (operational expenditure) value will inflate beyond
the budgeted amount.
In such situations, the Project
Coordinator typically first tries to modify the strategies in the field by
maximizing the existing costs. If it is deemed extremely difficult and the
project's deliverables are at greater risk, which could result in cost
penalties or risks for other clients, the Project Coordinator will still
request an over-budget approval.
D. Strategy Incidence Rate by Senior Manager
Client Service (CS)
The last IDI to validate the strategy of
determining valid IR values is with the senior manager from the client service
team. Here are the answers to the questions asked:
1. Support
for IR values in the client's project brief.
According to the Senior Manager from the
CS team, clients never provide specific
IR values that can be used as references to calculate valid IR values,
even for research-savvy clients. The CS
team usually tries to gain an understanding of the difficulty in finding the
target respondents by requesting sales data or other relevant data that the
client may be able to provide. However, beyond that, there is not much
information provided by the client to assist in determining the IR values.
2. Standardization
of determining IR values in the client service team during costing requests.
There is currently no standardization in
place within the client service team, even though the costing template on the
platform requests such data as a reference. According to the Senior Manager of
CI, when the CS team is asked to input IR data, their approach is like that of
the PM team and the Project Coordinator. They look at similar projects and, if
they feel there is no suitable reference, the CS team relies more on intuition
or fully relies on the justifications provided by the PM team in the costing.
3. Steps
taken by CS to assure clients that costing aligns with the correct IR values.
According to the Senior Manager at CI,
there will always be a negotiation process with the client once the pricing is
provided to them, and this negotiation process is not standardized in every
proposal. The negotiation is typically conducted for the price that has already
included a margin from the cost of operations.
To convince the client that the given
price is the best and aligns with the criteria to be targeted in the survey,
the CS team usually performs an initial check on the costs provided by the
operations team and verifies the logic with the survey method, respondent
criteria, and survey area. If necessary, negotiation processes have already
been conducted with the operations team before it is finally presented to the
client service.
Negotiations with each client are also
treated differently based on the client type. For government-owned enterprise
(BUMN) clients, during the negotiation process, they often request a detailed
breakdown of the cost components included in the given price. Therefore, the CS
team needs to carefully consider each component to ensure that there are no
costs that seem unreasonable. However, non-BUMN clients, they do not require
such detailed breakdowns and tend to have more general negotiations.
Of the three divisions that were asked, they
all answered "Important" with several considerations that have been
summarized as follows:
1. Incidence
rate reflects the productivity value of interviewers in each project. This
productivity figure serves as a reference for PM when creating costing.
2. Incidence
rate also serves as a reference for the timeline of each project. This timeline
becomes a reference for the PM to calculate the required resource costs.
3. Incidence
rate can also indicate the difficulty in finding and approaching respondents,
which can provide a reference for determining the GIFT/Incentives value for
respondents in each project.
F. The Best Strategy for Determining IR values
According To Relevant Stakeholders.
From the IDIs conducted with the three
relevant stakeholders, several points have been summarized as follows:
1. Compliance
of each team that supports the PM team in providing valid IR value references
should be standardized.
2. Create
a more standardized database to serve as a data bank when in need of good IR
values.
3. Collaborate
with internal and external stakeholders to provide data references as IR value
references.
4. Develop
standardized tools for recording contact sheets to facilitate the field team.
5. Increase
the operation cost in terms of interviewer fees to incentivize interviewers to
actively record IR values.
6. Make
IR values the primary reference in the costing process but combine them with
other variables to obtain more valid costs, enabling the provision of the most
competitive pricing to clients.
G. Innovation Strategy in Digital Data
Collection Method CI NIQ
The next analysis conducted is related to the
digital innovation strategy in data collection methods at CI NIQ. To gain
insights in this area, IDI interviews were conducted with 2 key individuals
from the Operation and Commercial teams.
1. Project Management COE (Center of Excellence) Leader:
Plan, schedule, and establish workflow in accordance with established global
standards to meet delivery schedules with ongoing emphasis to improve
efficiency, accuracy, timeliness, and cost-effectiveness. Introduce new methods as necessary, with the
end goal of maximizing resources and delivery commitments. Responsible
for the overall management and coordination of the Center of Excellence unit to
effectively utilize and develop the appropriate resources to meet both short
and long-term needs of the overall business strategy, project deliverables, and
quality assurances.
2.
Associate Director � Client Service: Besides
To design, selling, and executing research studies, acting as a consultant to
clients and internal staff on study and research, and design issues, and
managing a group of account management, project management, and support staff.
Currently, every associate director at
CI NIQ has specific Key Performance Indicators (KPIs) to explore and expand NIQ
Global's business related to new, more efficient methods and emerging
industries.
In this section, the Operation and Client
Service teams will be asked the same questions regarding potential innovation
strategies that CI NIQ could undertake. Here are the results of the analysis
for each question.
H. Issues and Challenges in Digital Innovation
CI NIQ
Table 2
Background Issues in Innovation
Are there any ongoing issues at CI
NIQ related to the innovation of digitalization methodologies? |
How does CI NIQ embrace digital
technology currently, both in terms of data collection methods and survey
processes? |
What do you consider to be the main
challenges that NIQ faces in implementing digital surveys? |
1. Current
Issues.
a. Operation:
According to the leader in the Operation team, the current issue with digital
innovation at CI NIQ is the lack of a platform. One example is the online
survey platform currently used by CI NIQ, which is 100% supported by a vendor.
However, the vendor's capability in Indonesia to capture all respondents across
the country is still insufficient. In addition to the platform issue, there
hasn't been strong encouragement from the Client Service team, despite clear
directions from the global team. The Commercial team, represented by the Client
Service team, has not been aggressive enough in driving the digital innovation.
As a result, the efforts made by the CI NIQ Operation team in setting up the
necessary infrastructure cannot be fully utilized.
b. CS:
According to the CS Director, the challenge with the digitization of surveys at
CI NIQ is that online surveys, for example, do not provide representative data
that accurately reflects the population. The overall positioning of CI NIQ with
clients is focused on how CI NIQ's data can be used as a reference for clients
in building their KPIs, such as market share data for brand health projects.
The lack of representativeness is due to
CI NIQ's current reliance on vendors for conducting digital surveys. As
mentioned earlier, the panel data provided by vendors does not cover all areas
in Indonesia, especially rural areas.
2. CI NIQ embraces digital technology
currently, both in terms of data collection methods and survey processes.
a. Operation:
According to the leader in the Operation team, the signs of CI NIQ embracing
digitization are evident through strong directives from the global team to
digitize surveys as soon as possible. Several global initiatives in CI Ops have
been implemented to develop a digital survey strategy and explore
possibilities. These initiatives include collecting IR values for all ongoing
projects, which will serve as a data bank for IR references. Digital recording
of Length of Interview (LOI) for each project has been implemented to
standardize projects and achieve the ideal LOI for survey innovation. There is
also a strong collaboration with online vendors to obtain competitive prices
and expand the panel size across all CI NIQ markets.
b. CS:
According to the CS Director, this aligns with what was previously expressed by
the operation team, as the support for digitization is evident through the
seriousness of the global team in setting high KPIs for each CI NIQ market to
undergo digital survey transformation. Although the sales target for the new
initiatives has only reached 20% of the target, progress is being made in
Indonesia.
3. Main
Challenges in Digitalization Innovation
a. Operation:
According to the leader in the operation team, the current challenge lies with
the Client Service team at CI NIQ, as they are not yet accustomed to conducting
online survey analysis. They still maintain an offline survey mindset that is
being shifted online. This limits their ability to fully leverage the
capabilities of the current surveys and transition to online surveys. From the
Operation team's perspective, there are no significant challenges, as they are
100% ready to support this digital transformation if needed.
b. CS:
According to the Client Service Director, the challenge lies in meeting the
client's need for data representativeness, which is typically achieved through
CI NIQ's standard random sampling methods. If digital surveys are conducted
using vendors, it becomes challenging for the Client Service team to convince
their clients, as it may compromise the representativeness of the data.
Type of
Innovation, According
to you, what digital survey innovation do you think is most suitable for CI NIQ
to address the issues in CI OPS?
The proposed types of
innovation for the digitalization strategy at CI NIQ by both teams are as
follows:
1. Operation: The leader in the
operation team suggests utilizing tools for online respondent recruitment as an
innovation for digitalizing surveys at CI NIQ. One example is using robocalls with
the assistance of CI NIQ's datalake. The process involves using the datalake to
search for respondents with high difficulty levels, such as banking or
automotive projects, by inputting their numbers into the robocall system. The
robocall is an automated dialing tool with a robot's assistance, where
respondents are asked standard screening questions. If a respondent is willing
to be called, they can proceed to the main interview.
2. CS: The CS Director acknowledges that
bringing digital surveys from CI NIQ to clients is not an easy task because the
current client expectations of NIQ are market research that provides
representative data in the market. However, during previous pandemics when
face-to-face surveys were not possible, one successful method for respondent
recruitment was utilizing CI NIQ's datalake. This method was accepted by
clients, although there were some who declined. Most of the tracking in CI NIQ
was able to continue using the datalake method.
The CS Director considers this idea to be the most feasible innovation
currently for CI NIQ, as it is believed to greatly assist in respondent
recruitment and provide better results for clients.
Table 3
Innovation Process in Digital
What is the most appropriate
process for implementing the digitalization methodology at CI NIQ? |
Does the team at CI NIQ have the
capability to accomplish that? |
Is there a need for a dedicated
team to handle this at CI NIQ? |
1. The most appropriate process for
implementing the digitalization survey method.
2. Operation: According to the leader in
the operation team, the most appropriate approach for the current innovation
process is to have strong support from the CS or Commercial team. The operation
team has already prepared everything needed for this digital transformation.
This includes transitioning from offline surveys to online surveys, where
the operation team has made numerous contacts and efforts to meet the needs of
the CS team. They have also set up new tools and adapted technologies to
capture surveys with more complex criteria or methods than before.
3. CS: According to the CS Director, the
most appropriate process at present is to explore various alternative methods
in data collection. As mentioned earlier, as respondent behavior evolves in the
future, their difficulties in approach will become more apparent. Additionally,
during pandemics that drastically change respondent behavior, it significantly
impacts CI NIQ's business operations, particularly surveys. The process of
digitization should be gradual and well-prepared to assist the CS team in
convincing clients that CI NIQ can provide something different from other
research companies while maintaining data quality as a competitive advantage.
4. Capability in CI NIQ for these
Innovation.
a. Operation: As previously mentioned by
the PM leader, the operation team at CI NIQ is fully prepared to support any
digital changes, including collaborating with various vendors that can support
this innovation.
b. CS: According to the CS Director,
currently, such capabilities may not be feasible, considering several aspects
that need further examination by all teams. For example, the use of datalake,
which is considered the most representative in depicting the population, is
still struggling with suboptimal success rates and the reliability of
respondent data is not yet fully reliable.
5. Dedicated team for Innovation
strategy
a. Operation: The Operation leader
believes that a dedicated team should be established and professionally
appointed by leaders at both the global and regional levels. This is because
achieving smooth-running innovation and meeting expectations requires a high
level of dedication. In the Operation team, it is not uncommon to hire a
dedicated team to prepare for an innovation, and they may also act as the main point
of contact with relevant vendors if needed.
b. CS: The CS Director states that a
dedicated team for innovation is necessary, considering the need for
individuals with specialized skills to make it happen. However, from a business
strategy perspective, it can be challenging for a company as once the
innovation is completed and implemented, the dedicated team may no longer be
100% useful. Therefore, the suggestion from the CS Director is to appoint a
champion from within the existing team who has the desire, passion, and
capabilities to lead the initiative.
Based
on the above analysis, there is business solutions that can be implemented,
aligning with the objectives of the final project. The most feasible method of digitalization that can be implemented at CI
NIQ is the use of digital surveys for recruiting respondents for surveys with
challenging criteria. Recruitment can be done using social media, which
is believed to be the most popular platform where 50% of respondents are likely
to engage with CI NIQ.
Furthermore,
to encourage respondents to participate in surveys at CI NIQ, there is a need
to strengthen the CI NIQ brand on social media. This is supported by the fact
that 32% of respondents express their interest in interacting with CI NIQ
through social media to learn more about the company, followed by 31% who
prefer to inquire through social media platforms for clearer information about
the surveys they will participate in. The digital surveys should be clear,
engaging, and easy to complete, as 30% of respondents stated that the ease of
completing the survey is their main decision factor.
Moreover,
after respondents have had a positive experience, a referral system can be
implemented as an alternative to traditional snowball sampling. A significant
portion, 90% of respondents, are interested in a referral system, with 77%
expressing willingness to provide referrals if they can receive direct
incentives in the form of e-wallet credits aligned with the level of difficulty
of the criteria.
35% of
respondents expressed interest in providing referrals through a referral code
on the survey platform, while 33% prefer direct distribution of survey links
through broadcasts from respondents themselves.
Regarding
the respondents' interest in digital methodologies, 66% of them are interested
in the datalake system. This aligns with the IDI results regarding the strategy
of creating a data bank at CI NIQ to obtain more valid IR values. Currently,
there is no standardized system for storing the data owned by CI NIQ. By
creating and maximizing the datalake system, project managers can utilize it to
retrieve IR values when conducting costing.
Therefore,
the datalake will consist of a combination of the existing NIQ database and
respondents who have completed the digital recruitment surveys. The IR value
can then be calculated using a modified formula, which was originally as
follows:
IR = *Contact / (Contact + **Full respondent)
*Contact = respondents who were met but did
not match the criteria sought in the survey.
**Full respondent = respondents who met the
survey criteria.
The modified formula,
when using the datalake to calculate it, would be as follows:
IR = ***All respondent datalake / (All respondent datalake + ****potential
respondent)
*** All respondent
datalake = the total number of respondents recorded in the datalake, serving as
a reference for the population of CI NIQ.
**** Potential
respondents = respondents who meet the similar criteria required.
This can
also be done at the level of specific areas/cities, which was previously
complained about by stakeholders when relying solely on external data or their
insistence regarding IR values. This is because the IR values in each city and
area can vary.
The IR
values that can be calculated through the datalake can also provide a solution
to the investment needs in data collection, which previously required a budget
of over 50% for interviewer fees and 20% for respondent gifts. With the
existence of the datalake, in cases where it is difficult to find respondents
based on certain criteria, interviewers do not need to perform actual data
collection and can rely on the datalake instead.
Furthermore,
the business solution using the datalake is in line with the in-depth analysis
conducted with the operations and client service teams. Currently, with the
readiness of the operations team to implement digital innovation in survey
recruitment methods and leverage the datalake, it is considered the innovation
that comes closest to meeting client expectations at CI NIQ. By utilizing the
datalake, randomization can be performed, which demonstrates the
representativeness of data in CI NIQ.
If the
above business solution is implemented, the following is an estimation of the costs
that need to be prepared by CI NIQ.
Table 4
Plan cost for Datalake implementation
Social Media
maintenance by Admin |
IDR 2,500,000 |
Fix cost/month |
Datalake maintanance |
IDR 10,000,000 |
Fix cost/month |
Robocall |
IDR 3500/call |
Variable cost/project |
Platform survey STG |
IDR 2,500/survey |
Variable cost/project |
Time cost executives |
IDR 15,000,000 |
Fix cost/month |
However,
based on the estimated funding mentioned above, the operational costs in the
three key elements of operation can be reduced with the following estimated
increases:
Items |
Budget Cost (IDR) |
% Average Increase |
Current Impacted Cost (IDR) |
% Average Increase after Datalake |
Expected Impacted Cost (IDR) |
Fee Questionnaire for
Interviewer |
14,867,600,850 |
30% |
4,460,280,255 |
15% |
2,230,140,127.50 |
Gift to Respondent |
3,378,822,725 |
20% |
675,764,545 |
5% |
168,941,136.25 |
Transport Interviewer |
246,596,800 |
25% |
61,649,200 |
0% |
- |
1. With the implementation of datalake,
there is no need to increase the respondent fee to boost interviewer
productivity. Instead, data collection and approach will be done through
Robocall using the datalake.
2. The incentive (GIFT) that was
previously used as an appeal for respondents to participate in surveys,
especially for surveys with high criteria, can be eliminated during the
fieldwork phase to boost productivity. Instead, a GIFT can be provided upfront
when respondents complete the survey and enter the CI NIQ database for the datalake.
The value of the GIFT should be around 5% of the project's gift budget,
considering the quick length of interview (LOI), easier survey method, and
flexibility for respondents to complete it at any time rather than within a
specific timeframe.
3. Transportation costs can be
considered as 0% or no increase since the previous transportation cost was used
to pay for the daily fee of the interviewers during intercepts. With the use of
datalake and robocall, interviewers no longer need to do intercepts, and
instead, they are provided with a list of potential respondents generated
through the datalake. This is an effective way to reduce transportation costs,
which would otherwise exceed the increase in respondent GIFTs.
L. Implementation Plan & Justification
The
implementation that can be done initially is to use datalake as one of the
alternative digitalization methodologies for the strategy of reducing
operational costs in CI NIQ. However, eliminating all the excessive costs
currently may not be fully achievable. In the future, with the existence of
datalake and a more stable implementation, datalake can gradually be budgeted
into the operational costs of each costing project.
The
implementation for datalake can be planned to start in Quarter 3 of this year.
Why? Because the revenue target in the commercial team will certainly increase
in the following year, and the implementation of datalake cannot be completed
within just one quarter. Here is a proposed timeline plan that can be used.
Based on the analysis conducted in the previous chapter, the following are the conclusions that refer to the list of objectives related to the issues addressed in this final project: (1) The identification of factors that can create a positive customer experience to reduce the rejection rate of potential respondents when conducting a digital survey has been obtained through quantitative analysis referring to Kotler's 5 A's analysis. (2) The determination of the incidence rate, which was previously challenging for the NIQ team, including both the client service providing briefs or requesting quotations and the field team as supporters to provide references to the project management team for costing purposes, can now be facilitated by using Datalake. Currently, NIQ lacks a proper database that can be used to determine the incidence rate, even though according to the results of the IDI with all stakeholders, the easiest way to determine the IR is by looking at previous studies conducted. Therefore, if the Datalake strategy can be implemented effectively, it can serve as a database that assists the project management team in accessing IR data by calculating the number of respondents available in the Datalake and the number of respondents that fit the criteria.
This approach is also commonly used for online studies where they calculate the IR based on the number of available panels and the number of respondents that meet the criteria. Innovation, After a lengthy discussion with the two major stakeholders, the operation team, and the commercial team, it can be concluded that the most feasible digital innovation strategy to be implemented currently is using digital surveys as a method for recruiting respondents for surveys with challenging criteria, such as finance, automotive, and high-end project-related surveys. Typically, finding respondents with such specific criteria is not easy and can be time-consuming if approached directly. Moreover, the incidence rate for these target groups is lower compared to respondents from mass products or the general population. By collecting their data as extensively as possible through digital platforms, it will assist NIQ in obtaining better IR data and facilitate the approach when surveys begin.
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