Why Build A Panel (vs. Using A Database)

I was recently asked the following question by a client for whom we had conducted a screener survey on an email list of theirs: why should I take the time and resource to invest in a custom panel when I can just send surveys to this email list whenever a project comes up that would be suitable?  We spent an hour together in person discussing the reasons, the very abbreviated summary version follows.  Maybe you too are facing a similar situation and this will be helpful to you.

There are many reasons why building a panel over using a database is a sensible decision. The key reasons include:

Cost – although there are set-up costs with a panel, these are one-time costs. The panel website, database structure, and registration/profiling survey will not need to be replaced each year and small changes can be made without a lot, if any, cost. There are also cost savings with a panel vs. using a list – with a list, at some point you are likely to need to find more sample to complete a project because the list is not producing enough completed interviews for you to complete the analysis. It is also more expensive per project to use a list vs. a panel because the latter has more that can be automated, such as incentive payment/fulfillment.

Higher response rates – with a panel, you can expect 60%+ response rates. In contrast, a list will typically produce response rates in the single digits. Even if these begin high with the first survey, they are likely to decline fairly quickly and consistently over time as consumers forget about the relationship and become distracted and engaged with other things especially if long gaps exist between communications.

Reliability – with a panel, we will be able to predict how many completed interviews can be obtained within specific timeframes. This is important as the business relies on you to deliver each study by a certain time and within budget.

Depth of insight – with a panel, you will not have to re-ask questions and will be able to easily combine profile information (that had been collected when members joined the panel) with the specific data from the survey, thereby enabling you to produce even deeper insights on each study.

Level of engagement – with a panel, when managed properly, your members will feel a part of something you might call a community of sorts. This results in their willingness to participate often and to provide you with even more feedback than you would otherwise be able to obtain.

Ability to recruit on-going – with a panel, we would be able to easily direct traffic to join the panel through your promotions or other methods. This will help to keep it growing and fresh. In contrast, with a list, there is really nowhere for consumers to go who are interested in participating.