Internet Services: Typical Engagements
Positioning & Messaging: Web Hosting Services
A Web hosting services company retained ConStat to conduct research to understand the brand choice dynamics in the Web hosting category and determine ways in which the market could be segmented based on the needs associated with outsourcing Web hosting services. At the time of the research, the Web hosting services category was poised to experience significant growth and our client wanted to understand the needs and behavior of target businesses.
The research was conducted in two phases: The first was a qualitative phase consisting of in-depth interviews of 16 individuals responsible for decisions on Web site development and hosting at their company and, given their potential influence on company decision makers, six Web designers. This was followed by a quantitative phase consisting of 300 telephone interviews among persons with a high level of involvement in managing their company’s Web site. The focus was on small-to-medium enterprises (companies with 5 – 499 employees).
Results from the qualitative research were used as input for the subsequent quantitative phase, which identified key factors considered when making brand selections within the Web hosting services category. The research also identified the specific product/service features that would best convey these factors, perceptions of principal competitors within the Web hosting services category and how best to position our client’s brand relative to these competitors. As well, the research determined a potential means of segmenting the market by attitudinal-related dimensions, which gave the client a more direct way of identifying companies more prone to switching their current Web hosting service provider.
Choice-Based Conjoint: Internet Services
A leading ISP interested in testing alternate offers for both narrowband (dial-up) and broadband access selected ConStat to help them determine the most compelling offer. The company wanted to test consumer appeal as well as its ability to perform against competitive Internet service offers.
Based on this client’s specific objectives, ConStat’s team recommended a choice-based conjoint design in lieu of a monadic design. This approach accomplished the stated goals with substantially fewer interviews. Moreover, the study yielded a simulator that enabled the client to estimate alternate pricing scenarios and determine the relative impact of each component of the offer.
ConStat employed an online methodology using a panel of Internet subscribers. Two cells were used, each comprised of an equal number of subscribers to competitive ISPs and evenly distributed across both narrowband and broadband users.
Based on the number of variables tested, ConStat created a trade-off model that required 30 to 40 different scenarios to be tested. Given our previous experience with this approach, we recommended a factorial design requiring between four and eight questionnaire versions for each cell, so that each individual respondent evaluated no more than a total of eight scenarios, minimizing the risk “drop out” due to fatigue or lack of interest.
ConStat managed all sampling and questionnaire design, programming, data collection, tabulation and creation of data tables, all of which was accomplished according to the client’s expected objectives, and delivered a final report in just six weeks.
Customer Retention Study: High-Speed Internet
A national provider of residential high-speed Internet access wanted to overcome any internal and competitive factors that might limit achievement of its customer growth goals. Using internal lists, ConStat conducted a companywide survey of recently disconnected customers to determine if they were being pushed away by dissatisfaction with the client’s service, or being pulled to a competitor’s service by promotional offers and advertising. We evaluated and compared client and competitor services against a lengthy list of performance attributes.
Results of the study uncovered areas the client needed to address in order to maintain the value level its customers demanded if they were to remain loyal in the face of increasing competition.