How do you decide whether to engage an outside research vendor vs. doing scrappy research yourself?

Having skilled, experience market researchers in-house (whether in PMM or not) certainly makes it easy to take on more projects yourself. No matter how good outside firms are, they'll never be as deep as your team is on company strategy, product portfolio or brand identity. So, all things being equal, it's generally best to bring in a consultant or outside firm for research projects where objectivity and neutrality are particularly helpful. Exploratory brand, messaging, use case and pricing interviews that are blind or semi-blind can be particularly effective when run by an outside firm. An outside firm can also synthesize findings with less bias than internal teams. Another strong reason to go with an outside firm is if your study involves recruiting an interview panel, particularly of senior decision makers, beyond your customer base. Firms and consultants with networks strong enough to fill these types of panels can be expensive but are worth it if your study is structured properly.

My bias is towards conducting in-house research first to establish the foundations and get crisp on the business subjective, research questions, target personas … what we need to learn, who are we targeting, and why. I’ve found that you can get a reasonable distance with a structured approach to customer research and the process can be a good gauge for formulating the research agenda before you bring in an agency and/or purchase industry reports. Your output is only as good as the clear framing of the objectives - you don’t want to send your agency on a wild goose chase!

Whether to do user research in-house or hire a vendor is a decision that depends on three key factors: budget, time, and quality.

Engaging a research vendor is the more expensive option. It's kind of a you get what you pay for scenario. If you engage a vendor and brief them well, you'll probably get better results simply because its the research vendors field of expertise.

If you have a limited budget or need results immediately, then doing the research yourself may be the best option. However, it is important to keep in mind that your research may be limited to desk research or scrappier qual or quant research.

A vendor might have a larger playbook of studies. As a marketer, I can conduct research, but some questions are beyond the scope of a PMM. Some complex methodologies such as MaxDiff and Conjoint Analysis have come up as means to uncover the insights my team has needed, and those are best left to vendors.

It's important to be aware that research can be biased if not done correctly. The order of questions or how they are phrased may lead to confirmation bias. In my experience, a research vendor or dedicated UXR resource tends to think about this inherently vs as a PMM I need to put in extra effort to do so.

For me, it comes down to what problem I'm trying to get an answer to and whats the overall best solution for the business based on the time and budget we have, and then based on type of research needed.

First understand the appetite level for research across the organization. If a lack of customer or market understanding is preventing the business from achieving key goals (closing more deals, delivering better products, etc.), and you can make that connection, then you might have an easier time unlocking the resources.

If there are smaller pockets of need, or it's not a large enough problem across the business, then you might have to start with some scrappier tactics to prove the value. No matter which path you choose, it is critical to take time to speak with your stakeholders and understand where the gaps in market knowledge are, what those gaps are blocking the team from achieving, and diagnose what kind of research will help fill that knowledge gap.

Whether in-house or with a consultant, the goal remains the same: to deeply understand your market and customers, and to leverage this understanding to make informed, strategic decisions.

Deciding when to conduct research in-house versus bringing in a consultant is a critical choice that can impact the quality, depth, and utility of the insights gathered.

Here's my perspective on navigating this decision:

In-House: Leveraging Internal Expertise

1. Deep Product Knowledge: Your in-house team has an intimate understanding of your product, brand, and market. This deep knowledge allows for highly relevant and focused research. If the research requires nuanced understanding of product features, customer interactions, or internal processes, your team is well-positioned to handle it.

2. Cost Efficiency: Conducting research in-house can be more cost-effective, especially for ongoing or smaller-scale projects. If you have a dedicated team with the necessary skills and tools, leveraging these resources can save on consultant fees.

3. Rapid Iteration: In-house teams can iterate quickly. When speed is essential – such as in agile development cycles or when testing new marketing campaigns – your internal team can conduct and analyze research promptly, providing immediate feedback.

4. Confidentiality and Control: Managing sensitive information is easier in-house. If the research involves proprietary data or strategic initiatives that require confidentiality, keeping the project within your team ensures better control over information security.

When to Bring in a Consultant: Tapping Into Specialized Expertise

1. Specialized Skills and Tools: Consultants bring specialized skills and access to advanced tools that your team may lack. For complex methodologies like conjoint analysis, ethnographic studies, or advanced statistical modeling, consultants can provide the expertise needed to ensure accuracy and depth.

2. Objective Perspective: External consultants offer an unbiased perspective. They can identify blind spots and challenge assumptions that your internal team might overlook. This objectivity is invaluable for ensuring that research findings are comprehensive and credible.

3. Scalability and Scope: Large-scale projects or those requiring extensive resources may be better suited for consultants. If the research scope exceeds your team’s capacity or if it requires a significant time investment, consultants can scale efforts without overburdening your staff.

4. Benchmarking and Best Practices: Consultants often have experience across various industries and companies. They bring best practices and benchmarking insights that can enrich your research. If you need comparative analysis or insights into industry standards, a consultant’s experience can be particularly beneficial.

Balancing the two, what I recommend considering:

1. Assess Internal Capabilities: Start by evaluating your team’s skills, experience, and bandwidth. Do they have the expertise to handle the specific research methodology required? Can they manage the project without compromising other critical tasks? Or are you a solo PMM like me :)

   • Underrated but...a key component to making this successful this IMO is can the consultant get access to your Slack for direct conversations and questions?

2. Define the Research Scope: Clearly define the scope and objectives of your research. Is the project complex or straightforward? Does it require specialized knowledge or tools that your team doesn’t possess? Is the timeline tight or flexible?

3. Consider Budget and ROI: Weigh the costs of both approaches. While in-house research may seem cheaper initially, the depth and quality of insights from a consultant could provide higher ROI in the long run. Consider the potential impact of the research on strategic decisions and weigh this against the costs.

4. Hybrid Models: Sometimes, a hybrid approach can be the most effective. Your internal team can handle the foundational work, while a consultant is brought in for specialized tasks or to validate findings--like SEO for example.

Ultimately, the decision to conduct research in-house or with a consultant should align with your strategic goals, resources, and the specific needs of the project. By carefully assessing your internal capabilities, understanding the scope and complexity of the research, and considering the potential return on investment, you can make an informed choice that maximizes the value and impact of your market research efforts.

In essence, it’s not just about who does the research, but about ensuring that the research delivers actionable, high-quality insights that drive your product marketing success.