Quick Summary
- Full-service agencies manage the market research process from end to end.
- Limited service providers specialize in specific research elements, such as data collection or panel management.
- Depending on your needs and budget, limited or full-service may be your best bet.
Market research drives sustained business growth.
The more you know about who your customers are, what they want, and how they prefer to interact with your brand, the better. Data drives these insights, but 87% of marketers say that data is their most underutilized asset.
Market research firms help businesses make the most of their existing data, collect new data, and analyze this data to deliver actionable insights. There are two broad types of market research providers: Full-service and limited service.
Full-service companies handle research from end to end, while limited service providers specialize in specific research elements. Which type matches your needs depends on multiple factors, such as your marketing goals, budget, and the nature of your customer base.
In this piece, we’ll break down the basics of full-service and limited service market research, explore the pros and cons of each, and offer practical advice to help you find the right fit.
What is Full-Service Market Research?
Full-service market research companies provide complete research solutions, from design to analysis to reporting. Put simply, you identify the end goal, and full-service firms take it from there.
Common services offered include:
Problem definition
Evaluating current research efforts (if any), then defining problems (and solutions).
Survey design
Designing surveys that fit your customer profiles and marketing goals.
Data collection
Collecting data from surveys, panels, interviews, and online customer activity.
Results reporting
Analyzing multiple data sources and reporting the results to marketing teams.
Strategy recommendations
Recommending marketing actions based on data and analysis.
While companies from any industry can benefit from full-service solutions, these end-to-end options are often used in verticals such as healthcare, consumer goods, and technology.
Consider healthcare. With patient outcomes as their primary focus, many healthcare organizations don’t employ full-time marketing staff. This can make it challenging for these businesses to stand out from the competition and showcase their unique value proposition. Full-service providers handle all aspects of data collection, analysis, and reporting, providing healthcare agencies with the insight they need without compromising the quality of patient care.
Advantages of Full-Service Research
Full-service research comes with several advantages.
First is convenience. Firms handle all aspects of market research, leaving companies to focus on business operations. Next is expertise. Handling all aspects of research requires both general and specialized knowledge, along with highly trained staff. Finally, hiring a full-service provider offers single-point accountability for questions or concerns.
What is Limited Service Market Research?
Limited service agencies or consultants focus on specific aspects of market research. They may provide a single service or allow companies to choose from a combination of multiple services.
Typical services include:
Data collection
Collecting in-depth data from specific sources.
Fieldwork
Observing customer behavior in person =and online to discover insights about how they interact with services and products.
Panel management
Creating and managing participant panels to provide feedback on products or services, both online and in-person.
Analytics
Analyzing collected data from multiple sources and providing the results to help improve customer engagement and conversion.
Limited service firms are often used when companies prefer to handle the bulk of marketing tasks in-house, but want to outsource specific functions. Consider an e-commerce business that knows its audience but wants better insight to provide more personalized experiences. While the business does all survey design in-house, they contract a limited service provider to manage large-scale data collection.
Advantages of Limited Service Research
The biggest advantage of limited service research companies is cost efficiency. Businesses pay for specific services rather than broad experience, allowing them to combine in-house efforts and outsourced services to keep costs under control.
Limited service agencies may also provide more flexibility. Companies can pick and choose the services they want to align with marketing efforts and change the combination of services they use as marketing needs evolve. Finally, limited service providers may offer niche expertise. For example, a limited service firm might specialize in data collection, complete with proprietary tools and software that help uncover new trends and or unexpected connections.
Full-Service vs Limited Service: Key Differences
There are three key differences between full and limited service providers:
1) Scope of work
Full-service agencies handle everything, from initial design to analytics to reporting. Limited service firms provide a specific service (or services).
2) Cost
Limited service agencies have a limited scope of responsibility, while full-service companies provide end-to-end support. As a result, limited options are more budget-friendly while full-service solutions require a higher investment.
3) Involvement
Partnering with a full-service firm means less work for internal teams. Limited service providers require more in-house management of marketing strategies.
When to Choose Each Type of Service
The type of service that best suits your needs depends on service factors, including your marketing goals, budget, and customer composition.
Full-service solutions are best for businesses that either lack research teams of their own, or those seeking broad strategic guidance. Limited service options are ideal for companies that have internal expertise but require support in specific areas such as data collection or survey creation.
In general, enterprises trend toward limited service options, while small and midsize businesses (SMBs) benefit more from full-service agencies. The caveat? Budget. For some SMBs, hiring a full-service firm isn’t cost-effective, making a limited service option the better choice.
Here are two scenarios to help understand the selection process.
Company A is a consulting firm that specializes in risk management. It has 50 employees and has seen significant growth over the past three years as its clients look to reduce risk and improve compliance. While Company A’s primary market is manufacturing firms, they’re hoping to branch out into other high-risk industries. With an established process for creating risk-evaluation surveys and analyzing data, what they need is a way to identify emerging market trends, making a limited service company their best bet.
Company B is a large retail enterprise working on the newest version of its most popular product. The current iteration is widely considered to be the market’s front-runner, and the company wants to make sure the new offering lives up to expectations. To accomplish this goal, they need to identify both current and potential market segments, conduct online and in-person focus groups, and collect data from multiple sources for analysis. The result? A full-service market research firm makes the most sense.
The Future of Market Research Services
So, what’s next for market research services?
First is the rise of hybrid models that combine both approaches. This is made possible by the widespread adoption of cloud-based solutions — now, providers can offer an à la carte model that lets companies select single services, multiple support options, or end-to-end assistance.
Also on the rise is the integration of AI and automation. For example, AI excels at data collection and analysis, while automation can help streamline processes such as sending out surveys, following up with reminders, and ensuring that data is routed to the correct location.
The result is a general trend toward more flexible service options. By allowing companies to select their best-fit model rather than forcing them into an A-or-B scenario, market research firms can expand their client base, while businesses can get the best of both worlds.
Making the Most of Market Research
Market research firms can help your company make the most of critical customer data. Both full and limited service firms offer advantages and potential challenges — while full-service provides full accountability, it also comes with increased cost. And while limited service is more budget-friendly, it requires more work from internal teams.
To make the most of market research, take the time to pinpoint your goals, assess your budget, and evaluate your options before choosing a full-service solution or a limited service firm.
Better answers, smarter decisions: Discover the Sogolytics market research solution. Start here.
FAQs
What is the main difference between full-service and limited service research?
Full-service research is end-to-end, from design to analytics to reporting. Limited service provides a single service or a combination of services.
Which option is more cost-effective for small businesses?
Limited service is more cost-effective for SMBs because they can pick and choose the right set of solutions.
Can limited service agencies provide strategic insights?
Limited services do not inherently offer strategic insights. Instead, they can be combined with in-house efforts to discover new strategies.
What industries typically use full-service market research?
Industries such as healthcare, consumer goods producers, and technology companies often choose full-service agencies.
How do I decide which type of research service to use?
Identify your marketing goals and pinpoint your budget. If you need a complete strategy and have the budget to back it up, consider full service. If you have in-house expertise or don’t have money to spare, opt for limited service.
