How to Conduct a Customer Panel Effectively

Being a small business owner, you may feel discouraged that you don't have the financial access to market research like some of your bigger, more established competitors. But one simple yet often overlooked method that's both effective and inexpensive to utilize is the customer panel.

Different than a focus group, a customer panel is comprised of a select group of representatives from your company communicating with a group of customers in the same room (as opposed to a focus group, where the representatives of the company don't interact at all, or may not even be in attendance, period.) A customer panel assists you in improving your product by providing valuable information; it will also help you listen to and communicate with your customers better. Reading feedback from customers in a report is helpful, but hearing them speak is often a more effective method

First, figure out what information you hope to gain from the panel. It could be anything from their opinion of your customer service level, to finding out what benefits they expect to receive by purchasing your product, to flat-out ideas on how to make your product(s) better.

Try to have a wide variety of panel members, including those who may not be entirely enthralled with your product. To get an ample number of participants, consider coming up with list that covers more than the number you want. Call them up, give them a quick rundown of what your panel will be covering, and try to establish a common time and date that's good for everyone. If you plan to invite people from your company to come and observe, now would be a good time.

Make arrangements once the details have been worked out. You'll need money to cover refreshments, seating, monetary or other compensation, and the presentation (if any). If you also have observers, they're going to need something to write down their notations in. The panel room by necessity needs to be in a quiet space, and a place where you can tape items up on the walls. (If the latter isn't available, try using an easel.)

Invite the participants to the panel with a mailed invitation, or by phone or e-mail-whichever is the most convenient for the customers. This will also largely depend on how much time you have to get a panel together and how you communicate best with them.

Once the panel has started, introduce yourself to the invited gathering and explain what the purpose of the panel is. Tell them what the procedure of the panel will be, and establish yourself as a "neutral party"-a party who facilitates discussion but doesn't try to bias it either way.

Start the session by asking your customers point-blank questions, such as "What do you like about our products? What do you think needs improvement?" There's no point in beating around the bush when everyone knows why the panel has been put together. Next, give each person several sheets of paper and a pen. Ask them to write down one idea on each sheet of paper that keeps the questions you just asked in mind. Remind them to be specific when they write answers down-being vague will only hurt your research efforts. Tell them it's important to write legibly, and that complete sentences don't matter as long as the idea itself is specific enough.

After a few minutes, either tape the written ideas to the wall or write them down on the dry easel. Group similar ideas together, and ask if anything written down needs clarification. At this point any observers you've invited should take notes based on customers' responses; at the same time, remember (and remind them if necessary) that they are just observers, and should not make any contributions to the panel that might throw them off track.

After you've completed the panel discussion, be sure to thank everyone politely for their time and offer them compensation in a timely manner before disbanding. Some panelists may want to stick around for a while, if only to speak with you or other participants, which is a prime opportunity to deal with any customers who have an issue with your products. Follow up the event with a thank-you letter to everyone who was involved.

If you have a company base, get the staff together as soon as possible after the panel to discuss the results. Congratulate them on any positive remarks, but instead of placing blame for negative remarks, ask what the company can do proactively to change that situation.

A customer panel may be one of the most effective market research tools available to small business owners. If you conduct one wisely, you may find yourself light-years ahead of the competition in no time.