Why Companies Need Representative Samples

Statistics are the backbone of any successful business. Without reliable business statistics, a company doesn’t have the information they need to make crucial decisions. That’s why surveys are so important. Consumer surveys give companies insight into what their target audience really wants, needs, and how they feel about their products.

Of course, the accuracy of a survey is of the utmost importance. After all, if the survey isn’t conducted properly, a company will be using misinformation to guide their decisions. Consequently, they’ll likely make poor decisions, exposing their company to significant losses that could hamper or even shut down their operations.

One of the most important aspects of surveying is ensuring the panel constitutes a representative sample. To explain, a representative sample indicates that the tiny survey panel fully represents the population of concern. In other words, if a company is interested in the opinions of both men and women of all races between the ages of 30 and 50, the panel must include appropriate amounts of men, women, whites, Hispanics, African Americans, Asians, etc.  to ensure the sample is truly representative of the population they’re targeting.

To generate a truly representative sample, a few steps are required.

1. Identify Relevant Population - First, the company must identify who their target demographic is. For example, if your company sells skateboards, your relevant population probably doesn’t include senior citizens. It would be made up mostly of male teenagers and young adults. Knowing your target audience is key to the success of any business.


2. Determine Data to be Collected - The next step is to figure out which data you want the survey to generate. Are you interested in feedback on a new product? Or do you simply wish to know how your clients feel about your customer service. It’s best to focus each survey on a particular subject to avoid any confusion.


3. Choose Data Collection Method - You can collect consumer data in any number of ways. You need to find the method that makes the most sense for your company. Again, if you have a young target demographic, you might be able to use advanced methods like social networking and other online collection methods. Likewise, if your target audience is older, you might want to use traditional methods that they would feel more comfortable with. Tailoring your data collection methods to your sample’s preferences will generate the highest quality results.


4. Find the Right Sample Size - To have representative samples, you need to have a panel large enough to reflect your target demographic. As far as specific size, market research is a highly detailed science, so it’s best to consult a company who specializes in this field.


5. Collect and Review - The only thing left to do now is to collect the data and to review it. This will help you identify any relevant trends, and it will provide the information you need to revise your future market research panels for maximum representation.
   

Before doing any survey, make sure you have a truly representative sample. Accurate statistics are a must!