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​Advantages And Disadvantages Of Focus Groups For Businesses

Advantages & Disadvantages of Focus Groups

Focus groups have long been a market research technique designed to gain valuable insights through first-hand feedback about products, services and ideas. It allows you to interact with your target audience, allowing you to tweak your business offerings to better suit their needs, or even discover opportunities you may have otherwise missed. An Ipsos study named “Statistics in Market Research” highlighted that 85% of companies that utilised focus groups reported significant improvements in product development and marketing strategies, proving that they do have a place in modern business.

But what are the specific advantages and disadvantages of focus groups? In this article, Real Business will go over these, as well as how to set up a focus group, get the most out of them, and more.

What Are Focus Groups?

To be specific – a focus group always involves between 6-12 people, with the participant selection being based on the same demographic as your target audience. Focus group discussions allow you to understand and market to these groups easily through a discussion guide, with open ended questions and topics to steer conversation. It’s done in a comfortable environment, with refreshments and natural settings to promote relaxation.

This type of market research has been around since the early 20th century, gaining massive popularity during the 1940s, and only becoming more refined since then. It’s become something of a norm to record these sessions, observing non-verbal cues and interactions for further data analysis.

We will reference this alongside other research methods to gauge the efficacy of focus groups as a tool for business owners.

Group Dynamic Data

How To Set Up A Focus Group

Starting a focus group can seem complicated. But all you need to conduct a focus group are nine things. You’ll find them listed all over the internet for anyone running a focus group if you want to conduct further research.

However, here’s our guide to running a focus group. Nine simple steps for startups is all you need to follow to get your focus group in order:

  1. Know your goals
  2. Identify target audience
  3. Recruit focus group participants
  4. Finalise logistics – in person focus groups vs virtual focus groups, etc
  5. Prepare questions and topics in advance
  6. Ask for support from a member of your team – two note takers is better than one if you want to gain invaluable insight into your target market
  7. Run the focus group
  8. Write up the results
  9. Take what you’ve learned and action it

 

If you want important insights into your target audience then a focus group is one of the best things you can do. A successful focus group knows it’s aims at the start, gets the right people in to discuss the topics, creates a relaxed atmosphere for easy discussion, and then takes action on the information that’s uncovered.

Do this, and you’ll see great results from your focus group discussion.

Still not sure? Let’s look at some of the advantages and disadvantages of running a focus group for business owners below.

Focus Group Advantages

The following are the advantages of focus groups.

In-Depth, Quality Feedback

Focus groups are considered a “qualitative research method”, meaning that they are designed to guide a process that explores complex issues in-depth.

When conducting focus groups, remember, much of the results depend on a skilled moderator. Moderators will ask open-ended questions and encourage detailed responses in kind, and it’s their job to ensure all participants get an equal chance to say their piece. They will also seek out contrary opinions or expansions on answers, often pushing for the group dynamics to be more interactive. In order to run a successful focus group you need to really explore all opinions.

Set ground rules at the start that nobody should interrupt one another, and that each person should have the time to have their say, even (and especially) when opinions differ.

Observe Body Language And Other Non-Verbal Cues

One of the biggest advantages of focus groups is the fact that it’s in-person (most of the time). This allows you to make note of non-verbal cues of multiple participants, noting body language, facial expressions and other subtle tells that may inform less “sugar-coated” opinions.

People who watch the focus groups are usually versed in understanding true sentiments via body language and facial expressions, such as crossed arms indicating defensiveness, leaning forward indicating interest etc. By getting everyone involved and in-tune with the discussion, most members will subconsciously show what they’re feeling about certain statements, which can lead to interesting group dynamics if spotted and utilised.

Spark New Ideas Through Group Brainstorming

A good moderator will ensure that everyone in the focus group is participating in the conversation. By bouncing topics and exploring ideas, feedback will become more detailed over time, and some of it may even be challenged with other group members’ insight.

This is good because it allows for new ideas to be brainstormed, pushing innovation for existing products and services. The best focus group results come when others offer diverse perspectives and everyone gets a say.

Facilitates Fast Research Compared To Interviews

Focus groups are an instantaneous feedback method comparable to social media. This allows you to gather insights in record time from multiple people that you already know are handpicked because they represent the audience you’re after. This is more efficient, fun and perhaps even effective than multiple one on one interviews.

Cost-Effective

Focus groups are cost effective compared to other research methods, as the running costs of operating these groups are usually confined to compensation, refreshments and needing a place to conduct it. Often compensation comes in the form of covering the public transport or fuel required to get there and a voucher.

Because you can choose the demographics of your focus group and guide the discussion on specific topics, the feedback received can be just as meaningful as a larger scale survey. If you plan on gathering audio and video recordings for analysis later you might require some equipment – but remember, all participant responses that are recorded in this way must be stored securely and the individuals will need to give prior informed consent.

Focus Group Disadvantages

There are however some limitations to consider with focus groups which are important to consider if you’re thinking of setting up a focus group to test a new business product or service.

Difficult To Generalise Findings To Broader Population

A focus group involves only a small group, meaning it’s typically a small sample size compared to the overall target market. This means it may not accurately represent diversity and variety of opinions of a larger population.

As a result, it’s important to ensure that the selection is informed, and likely to represent a sizeable portion of people. Furthermore, it may be necessary to have several groups with adjustments made to capture specific demographics. For example, urban dog owners may have different views about your dog accessories than rural dog owners.

Participant Influence

Focus groups could contain more outspoken, confident speakers who could sway other participants into their point of view, or simply dissuade others from speaking up through their charisma. The opposite can also happen if the group enters “groupthink” mode, backing away from their own individual thoughts in favour of the certainty of the herd.

Experienced moderators can help mitigate the risk of this happening by guiding the discussion effectively and ensuring participants have an equal speaking time, meaning this disadvantage can be offset with skill.

Social Pressure

The social dynamics of focus groups can be thrown off through pressure felt by individuals to express their true ideas, especially if those ideas are complex, contradictory to others, or risks interruption of the flow.

When a participant mentions a particular topic or comes up with an idea that you want to explore further, focus groups can make it difficult to go into any detail without disrupting the discussion. Experienced moderators can find the balance between probing questions and keeping the discussion flowing.

Logistical Challenges Of Scheduling And Recruiting

Focus groups have the logistical elements that can become taxing, including identification, hiring and time-slotting. This is time consuming and may cause setbacks. There is not a great deal you can do to offset these save through the expansion of your own resources, which may be hard for small businesses. Consider a small group of 3-5 members, spreading mini focus groups out over time.

As for the venue, consider online event sites for focus groups. These have their own challenges to contend with, as well as benefits to reap. Using both in-person and remote focus groups in a structured group setting will enable not only a wider participant reach but also the ability to read in-room body language. More on online focus groups later.

The Importance Of A Focus Group Moderator(s)

As we outlined before, a good moderator is almost always required for quality results, but there is not necessarily always just one moderator.

Dual-moderator focus groups involve two moderators with distinct roles during discussions. One engages directly with participants, while the other observes and manages the technical aspects, ensuring focused interaction and reducing subjectivity.

This approach amplifies focus group findings, as it reduces the chance of poor quality information being taken away from the session.

Leveraging Online Focus Groups

Focus Groups are not always conducted in person. Thanks to advances in video calling technology, remote sessions have become popular. They provide the following advantages:

  • Wider Geographical Reach – No need for long, or even short, distance travel.
  • Easier To Schedule – Considering the amount of time and energy removed from having to travel, scheduling participants becomes a lot more free.
  • Lower Costs – Expenses are all but negated.
  • Faster Recruiting – Easier to access participants as they can advertise on a larger scale.
  • Data Security – Data is secured online as opposed to being given directly to participants.
  • Real-Time Interactivity – Maintains participant interaction and allows for non-verbal cues to be observed.
  • Play Stimuli – Allows for product demonstration and sharing of images or videos through screen sharing functionality.

 

Combining Focus Groups With Surveys

A combination of different research methods can be extremely effective when conducting market research as you can offset the weakness of one with the strength of another.

A blended approach may involve:

  • Informing Focus Groups – Surveys can allow you to set the questions to either validate or negate insights.
  • Flexibility – Surveys are not at all flexible, designed to feed easy questions and receive simple answers.
  • Analysis – Focus groups can find ways around otherwise troubling data found in surveys through brainstorming.

 

This blended approach of two research methods can validate feedback received and provide helpful consumer insights that may otherwise might not have been considered.

The dynamics of Focus Groups

Conclusion

As we’ve said before, Focus Groups are here to stay. They provide valuable insights through platformed discussions. However, it is not the easiest format to pull off. You will need a skilled moderator, and a legitimate participant selection process.

One famous example of a focus group having massive success for a company is McDonald’s McCafe. Through a selection of coffee drinkers, McDonalds found that participants wanted richer, more robust coffee flavours on par with Starbucks’ quality, and they wanted an atmosphere that replicated this.

Nowadays, McDonald’s McCafe is massively successful thanks to this feedback. Perfect your focus groups, and you may very well find similar success as a business.

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