Christmas. Birthdays. Hanukkah. Physicals. Year end reviews. Budget analysis. All things we (have to) do on an annual basis. Some things are fun, and some? Maybe not so much. Let’s just call them necessary. Aside from the handful of us who actually enjoy working with numbers, things like budget analysis and planning can be low on the list of our favorite things, but we all know they’re needed.
In an attempt to help make at least that last one (budgeting analysis) a bit less painful, every year we survey our members on their budget levels, staffing levels, and resource allocation choices, etc. We upload the results into an interactive tool so that you can get specific data points, applying various filters, should you wish. (e.g. Market research budgets are on average what percent of company revenue when only looking at for financial services companies between $2 and $20 Billion in revenue? That’s .06%, if you were curious.) Additionally, we’ve pulled a number of the key metrics and results into an Executive Summary.
As I look at the overall results, a few observations particularly stood out:
1. Flat was still “the new up”. We said this last year, and we hoped that would be it… but in 2011, flat was still the new up. Overall average budgets in 2011 were the lowest we’ve seen since the recent high in 2008. There was one bright spot – B2C-Indirect members have on average actually seen an increase in budgets across the past three years. If that’s you, thank your lucky stars to be in the fortunate few! Those of us who are continuing to “do more with less,” check out our Cost and Efficiency Optimization center where we discuss successful tactics such as: better utilizing existing information, prioritizing research resources on the right issues, and organizing teams for more efficient response times.

2. We are optimistic for 2012. While budgets have as a whole been decreasing for the past few years, 45 percent of us believe our budgets will increase for 2012. Another 43% of us believe they will stay the same. An in-person informal poll during our London Executive Meeting in November had the same results. Looking outside of just budget numbers, overall 43% of us believe we will be able to increase our staff size in 2012, and another 48% believe their staff size will stay the same. What a better picture for the new year! For those of us who are lucky enough to increase in staff size this year, find helpful tips on how to hire “insight-ready” researchers in our Hiring topic center.
3. Continuing the trend from last year, we are even more so not just a marketing support service. While a solid 99% of us support Marketing, a large majority of us also support our peers in Strategy/Planning (89%), R&D (86%), Sales (79%), General Management (79%), and Corporate Communications (71%). In fact, there is no area that we support less than last year. I’m certain this doesn’t come as much of a surprise to any of you. I can’t count how many conversations I’ve had with members that start “So now we are also supporting [x group]… how do we make sure they know how to work with us effectively?” If that’s you, we’d love to talk with you! One quick thought to get you started: set internal partners’ expectations, demonstrating strategic value to the company, and setting boundaries on when to not call upon Research.
For additional data points on average department size, budget breakdown, project allocation, organizational structures, etc., see our 2011 Executive Summary, or benchmarking interactive tool.
Here’s to a great 2012!