How to Conduct a Focus Group

For Russel Treat, founder and owner of Gas Certification Institute, which trains oil-field technicians, focus groups are a key part of customer research. He has spent thousands of dollars conducting them but doesn't regret a penny of it. "They're absolutely critical," says Treat, whose Houston company posts $700,000 in annual revenue. "At focus groups, I get [customers] talking about their challenges." After one recent session, Treat is considering adding recruiting services to his company's offerings.

Unlike phone or online surveys, focus groups gather people in person to talk about their needs, attitudes, and habits. If you're looking for quantitative information to analyze or crunch, you should use phone or online services. But focus groups can help you learn about public perceptions of your company, purchasing habits, and customer needs. "You get honest feedback and valid opinions," says C. Dean Cring, director of research at the Entrepreneurial Development Center, a nonprofit consultancy in Houston.