So how’s business? A common question heard everyday around the globe. The perceived state and the actual state of business conditions faced by a company or industry are key drivers to future business purchases. As such, they have the potential for significant impact on near to mid-term sales and profitability. Measuring these perceptions is just as relevant to B2B market research as it is consumer market research. As survey authors, we are regularly tasked with capturing this data, which is often used as an adjunct to quantitative forecasting methods.
There are multiple ways to capture this data via survey. It is easiest if you maintain a panel of customers and prospects, but if not you can readily acquire a sample of professionals that fit your target market. There are a number of ways to phrase the questions. Some examples include:
How would you rate the present business conditions (sales, revenue, workload, etc.) facing your company/organization?
Our company is looking at...
It is often useful to ask your respondent to extrapolate outward one, two or even four quarters to test their belief in the direction the economy will take for their company. This can provide insightful data, but be cautious as all forecasts are subject to error, as conditions may change unexpectedly or the respondent may not be in the best position to respond. Either scenario will lead to potential error.
Another option is to ask them about the status of certain types of projects, which would have relevance to your sales. For example in the IT space there are several types of major projects (infrastructure, application upgrades and process improvement) each would have its own need for training, hardware, software, etc. A question might be phrased such as to enquire when these types of projects will be coming online.
From the analytical standpoint, business conditions should be crosstabulated with other questions (industry, length of relationship, profitability, etc.) to provide a clearer picture. Remember not all industries are in the same phase of the business cycle. Understanding where firms are at in their business conditions can lead to changes in your marketing and sales activities.
There are multiple ways to capture this data via survey. It is easiest if you maintain a panel of customers and prospects, but if not you can readily acquire a sample of professionals that fit your target market. There are a number of ways to phrase the questions. Some examples include:
How would you rate the present business conditions (sales, revenue, workload, etc.) facing your company/organization?
Our company is looking at...
strong growth this year.
moderate growth this year.
flat conditions (no growth) this year.
moderate decline this year.
strong decline this year.
moderate growth this year.
flat conditions (no growth) this year.
moderate decline this year.
strong decline this year.
It is often useful to ask your respondent to extrapolate outward one, two or even four quarters to test their belief in the direction the economy will take for their company. This can provide insightful data, but be cautious as all forecasts are subject to error, as conditions may change unexpectedly or the respondent may not be in the best position to respond. Either scenario will lead to potential error.
Another option is to ask them about the status of certain types of projects, which would have relevance to your sales. For example in the IT space there are several types of major projects (infrastructure, application upgrades and process improvement) each would have its own need for training, hardware, software, etc. A question might be phrased such as to enquire when these types of projects will be coming online.
From the analytical standpoint, business conditions should be crosstabulated with other questions (industry, length of relationship, profitability, etc.) to provide a clearer picture. Remember not all industries are in the same phase of the business cycle. Understanding where firms are at in their business conditions can lead to changes in your marketing and sales activities.
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