How to conduct Key Driver Analysis for your brand?

What is Key Driver Analysis (KDA)?

Key Driver Analysis examines the link between potential drivers and behaviors, such as the possibility of an excellent recommendation or satisfaction.

There are two prerequisites for a KDA: 

1. It would be best to find a customer satisfaction metric that is relevant to your objective. The types of CX metrics you choose could be Customer Satisfaction Score (CSAT), Net Promoter Score (NPS), or Customer Effort Score (CES).

1. The second prerequisite is the KDA questions which present variables that influence this metric. For example, if you measure NPS, the variables could be product, service, value, or employees. The KDA analysis will give you information on which variables affect the NPS score.  

When to use Key Driver Analysis with your survey data?

KDA relies on survey data that captures the performance of specific metrics from your customers’ perspective. The first step is to decide the output variable you want to measure. KDA is extremely useful when you are all set to track CES, NPS, and CSAT. If you want to create a strategy for your CX team to focus on the right areas, then the KDA will tell you the most influential factors when it comes to a higher satisfaction rate.

Once you know which areas you need to focus on, the next step is to come up with strategies on how to improve them.

At this juncture, you need a Key Driver Map. 

What is a Key Driver Map?

It is a graph that organizes the individual aspects of a company according to performance and what is perceived as necessary by customers.  advanced analytics techniques and regressions are used on survey responses to find out values that show the areas where the company is performing well and how much the customers care about them. 

How can businesses use Key Driver Map?

Key driver maps are divided into quadrants and the company’s attributes are classified like this- Promote, Maintain, Monitor, and Focus.

Promote

Better performance, High importance.

If the attributes fall in the well-performing category and if it is something that your customers love, then the company should concentrate more on it. The upper-right quadrant belongs to attributes that are important to the customer and where the company is good at. These are your strengths, and you need to leverage them properly.

Maintain

Better performance, Low importance.

Even if you are the best at making one particular product or delivering a service, if your customers don’t care much about it, it doesn’t help your business. You needn’t invest additional resources to improve them since customers are not influenced by your performance on attributes that belong to the bottom-right quadrant.

Monitor

Poor performance, Low importance.

The bottom left-hand quadrant refers to areas where the business doesn’t offer excellent service, but it is also something that the customers do not care about. Although you shouldn’t stop working on it, keep monitoring them so that they don’t hurt your customers. Make sure you always have a plan if it becomes vital for your customers suddenly due to market forces, regulations, or anything else.

Focus

Poor performance, High importance.

The upper left quadrant is an area that businesses should put all their focus on. Why? Because your customers care about attributes in this category, the industry is not a great performer. Send follow-up surveys to understand why customers feel that the company isn’t doing great here. Also, try to understand why customers love this attribute and why it is a key driver of their satisfaction. The onus is on the company to move products in this quadrant to the upper right quadrant.

Benefits of Key Driver Analysis

Even though Key Driver Analysis is simple to perform, its benefits are immense. Let us look at some of them:

1. Helps understand customer behavior

When you observe customers’ actions, you will understand that certain factors have a lot of bearing on how they purchase something. But in reality, businesses tend to ignore those factors as they might not look substantial on the surface.

For example, a B2B business that sells an email marketing automation platform has fewer lead magnet downloads. Therefore, they aren’t getting as many leads as they might want. Of course, the real reason for fewer downloads might be because they ask for too many pieces of information during the download process. But the business might think that they need to offer a different set of lead magnets to get more downloads.

2. Find key drivers for various segments

When you segment your customers, it becomes pretty easy to target them. With the help of KDA, you will get to know what drives customers from each of these segments. Businesses must understand that customers from different parts have varied preferences and drivers.

3. Predict trends

KDA not only gives you insights into the current key drivers for customers and predicts drivers for several what-if scenarios. So, for example, the tool might be able to say the kind of impact that will happen on customer satisfaction if there is free delivery.

4. Prioritize usage of resources

Key driver analysis tells you the number of drivers that will significantly impact customer satisfaction. Still, it will also tell the businesses which drivers have the most significant influence. This way, companies can spend on resources that will have the most impact rather than spending their budget on those that might not fetch a lot of results.

Key Driver Examples

Let us look at a few examples where businesses should use key driver analysis. 

1. Net Promoter Score (NPS)

Your NPS score gives you an idea of what your customers think about you. It asks a pretty simple question-” How likely are you to recommend this company to your friends and family?”
The respondents are asked to answer on a scale of 0 to 10. NPS is one of the easiest ways to gauge what your customers think about your product or service. Learning what the key drivers of NPS are will help you find ways to improve your customer service and increase brand loyalty.

2. Purchase Intent

It means whether your website visitors intend to buy from you now or sometime in the future. With the use of key driver analysis, you can understand the factors that will prod them to make a purchase. Not only should you learn about the attributes of your products or services, but also your competitors.

3. Drivers in each category

When you sell several products, you might find one category of products that sees a massive dip in its sales. Understanding the key drivers for the category will help you change the fortunes of this category in terms of sales. In addition, when you compare the drivers of multiple types, you will figure out which areas you need to focus more effort on. Finally, you can send surveys to determine the factors that drive purchases for different categories.

4. Customer Satisfaction

One metric that most businesses often use KDA is to understand customer satisfaction levels. It is pivotal for understanding customer loyalty. Loyal customers will be easy to upsell and cross-sell. They will be the first to buy your newly released products and recommend your products to their friends and family. Finding the key drivers for customer satisfaction will play a decisive role in increasing your profits.

Conclusion

Finding ways to improve customer satisfaction and customer loyalty isn’t a straightforward path. Using key driver analysis will help businesses understand which are the factors that contribute directly to their customers’ satisfaction rates. Thanks to KDA, you will be able to prioritize your efforts, resources, and time to get the maximum benefit. 

If you are looking to use an online survey tool for using the key driver analysis tool, Qwary is one of the best tools. Let us help you find the key drivers for your customer satisfaction with the help of our survey tool.