Types of Focus Groups and Why You Should Use Them

Successful business owners recognize the importance of keeping pace with their customers. After all, consumers or business clients can usually turn to other suppliers if your product or services don’t meet their needs. Focus groups are an ideal way to gather feedback from your customers, providing you with insights and ideas that can keep your brand ahead of the competition. As Marcus Lemonis says, ”If you have a good relationship with clients, people for the most part will stop shopping on pennies.”

In general, focus groups are most appropriate for businesses serving the consumer market (B2C), rather than those serving the B2B market. That’s because it’s easier to get direct feedback from a business customer via email or a phone call. Also, business clients are often too busy to get involved in a focus group, and unwilling to share their information in a setting where competitors are present.

Focus groups are an important type of market research that allows for in-depth conversations and discussions with actual or prospective customers. A typical focus group might consist of 6 to 12 people gathered together – in person or through a video call – to talk about a business’ products or services. A moderator familiar with group dynamics can guide the discussion so the participants stay on track and cover the relevant material.

Some focus groups are organized to address specific features of a product or service, such as the branding, design or packaging. Others can address issues related to customer service, deliver feedback on potential new products or services, or identify unmet needs that could provide market opportunities in the future.

For example, a while back Marcus met with a former lawyer and reality TV star turned celebrity chef, to discuss her line of sauces and marinades. He learned that her South Florida based company sells marinade, barbecue and hot sauces to supermarket customers throughout Florida. Marcus organized a focus group of consumers who would provide feedback on every aspect of the products. The results were enlightening for both Marcus and the business owner. It turned out that consumers really liked the taste of her sauces, but felt the name of the product, as well as the logo design were too similar to a competing brand. They also felt the packaging should do a better job of describing the ingredients and accenting the fact that the products were low fat and gluten free, in keeping with the desires of today’s consumers for healthy as well as tasty products. The result – a rebranding campaign that was in keeping with the high quality of the product and a deal with Marcus led to a win-win for everyone involved.

Next, you need to find an experienced moderator or facilitator for the focus group. Unless someone in your organization is trained to lead a guided discussion, you should look for an outside professional. In many cases, a marketing agency can help you recruit participants for the focus group and assist with finding a moderator.

Several years ago, Marcus met with the owners of an all-natural cleaning company that had grown into a million-dollar business. Before deciding to make an investment, he arranged a focus group for the brand. He learned that the participants didn’t like the product names or designs. After hearing this customer feedback, he engaged a graphic design firm that created a new logo for the bottles as part of a new branding initiative. With the changes in place, the company was ready to make a clean, fresh start.

As with market surveys and other forms of consumer research, focus groups can be customized to fit the needs of your business. Communications for Research, a market research firm, has outlined the following types of focus groups.

This is the most common type of focus group, as it can be used for many purposes. A single moderator guides the discussion with a group of participants – usually eight to 12 people.

This type has a smaller number of participants, perhaps four or five people, creating a more intimate environment. That makes it well-suited for discussions of sensitive issues, such as conversations about men’s or women’s hygienic products.

This is an interesting approach that can be valuable if you absolutely, positively need to get answers to your questions! One moderator asks the questions, while the second ensures those questions get answered. This avoids the risk that the first moderator could become distracted and helps keep the discussion on track.

With this approach, one or more of the participants takes on the role of moderator, and asks the questions. This can encourage both extroverted and introverted members of the focus group to present their opinions, providing a wider range of comments.

To summarize, a focus group is a powerful tool for market research. It can provide valuable feedback, ideas and insights into areas like customer service, product development and branding. But like any other type of research, you need to be clear about the purpose of organizing a focus group. You also should identify the best format and the key questions you want to have answered. In other words, determine your goal, and then decide on the best route to reach that destination. As Marcus says, “In any business, you can’t be complacent. If you do, you’re going to go backwards.”