Few in the market research industry seem willing to disclose information on how to calculate survey costs.  For most business professionals, this remains a vague mystery. 

CSSL has decided to lift the veil of mystery.  We are pleased to include information on the elements of survey cost calculation.

Discussion follows on factors we consider in figuring costs for surveys using telephone, mail, and online methodologies:

    Telephone Surveys:

Here are the elements CSSL uses in calculating the cost of telephone surveys:

1.  List incidence.  This is a measure of how accurate a calling list is (i.e., how many correct telephone numbers it has).  Most market research vendors prefer lists that have a minimum of 85-90% accuracy.  In short, having to dial more numbers drives up labor and telephone costs.

2.  Project incidence.  What percentage of the people we reach will qualify for the survey?  For example, if only 10 of 100 people on a list have used a particular product, and we need to determine attitudes toward that product, that's a 10% incidence.  The lower the incidence, the more time we must spend searching by telephone for qualified people to interview, and the higher the costs.

3.  Cooperation (or refusal) rate.  Once we find someone who qualifies for the project, we need their consent to conduct the interview.  Cooperation (or refusal) rates vary by project, with consumers generally less cooperative than executives.  The higher the refusal rate, the higher the cost.

4.  Length of interview.  For each project, we estimate how much time a typical interview will require, then add time to that estimate to cover editing by supervisors.

5.  Nature of Questions.  The more complex the questionnaire, the more costly.  Open-ended questions drive up costs, due to extra programming, editing, coding, tabulation, and analysis involved.

6.  Training.  Most projects require only very brief introductions for experienced interviewers.  However, jobs involving new terminology or detailed briefings will be more expensive.

7.  Coding and tabulation.  If the project involves capture of answers to open-ended questions, we must code and tabulate all responses, another cost center.

8.  Minute hour.  We base costs generally on a 55-minute hour, which allows interviewers a few breaks during the day.       

9.  Hourly rates.  We use different costs per hour for consumer and executive interviewing (i.e., evening and daytime calling).  In general, executive interviewing is more costly than consumer work due to higher salaries paid executive interviewers.  Discounts available for larger projects.

10.  Incentives.  For many surveys, we recommend use of incentives such as payment of cash, giving of small gift items (including coupons), drawings for more costly items, contributions to charity, etc.  Clients pay for all such incentives at cost.  Note that for surveys of executives, offers of information are most effective (at minimal cost to clients).

Using all of the above factors, CSSL uses formulas (easily derived from the above) to calculate production estimates and pricing of telephone surveys.        

  Mail Surveys:

Here are the elements used in pricing of mail surveys:

1.  List Preparation.  Most mail surveys involve some aspect of list selection, sorting, editing, etc.  Sometimes we have to manually append data.  Costs are related to clerical hourly rates.

2.  Printing.  We must determine how much our printer will charge for the cover letter, questionnaire, reply envelope, mailing envelope, reminder post card (optional).  Costs vary with quality of stock used for all elements, quantities, and amount of creative time spent by printer.

3.  Postage.  We must pay for postage out and back (postal reply charges per item handled).  For many mail surveys, this is the largest cost center.

4.  Handling.  It is time-consuming to prepare mailings and process returns.  

5.  Coding and tabulation.  We must spend many hours, using specialized clerical staff, coding responses to open-ended questions and tabulating results.

6.  Incentives.  See above discussion.

  Online Surveys:

These are the elements involved in cost of an online survey:

1.  Sample, if not provided by our client.  For a fee, we can access massive files of current e-mail addresses for specialized groups, such as medical professionals, IT managers, etc.

2.  Programming and testing of the questionnaire.

3.  Survey management and hosting.  We send out e-mail notifications of the online survey, giving recipients the URL.  Up to two reminder e-mail messages to non-responders (at no additional cost).  Hosting is a monthly charge per questionnaire.

4.  Telephone follow-up (optional).  To boost survey response rates, some clients ask us to telephone all e-mail recipients to gently remind them about the survey, and walk them through it on the telephone, if they wish.  For such assistance, we charge per call and per completed survey (based on fixed costs plus).

5.  Incentives.  See above discussion.

Note that in all instances, CSSL also charges for questionnaire development (if required) and analysis of data (if requested).  

CSSL looks forward to calculating a competitive cost for your survey!