If customers aren't satisfied and you can't retain them, it doesn't matter how many new customers you get, because you'll never be able to keep them.
Now, how can you improve customer satisfaction? And learn what motivates them and what drives their purchasing decisions?
Enter the key driver analysis. A key driver analysis will help you understand customer satisfaction, purchase behavior, and overall brand performance.
In this post, let's review what a key driver analysis is and how you can use one to improve your customer satisfaction.
What is a Key Driver Analysis?
A key driver analysis will help you understand the drivers behind business metrics such as customer satisfaction or loyalty to improve the customer experience. Ultimately, this will examine what factors of your product or service influence a positive recommendation (NPS).
To conduct a key driver analysis, you'll need to send a survey that asks about potential drivers and then asks for an overall satisfaction score (whether NPS, CSAT, or CES).
For example, if you work at a hotel, your survey could ask about the satisfaction with cleanliness, staff, food, or the check-in and check-out process. Then, in the end, you'll ask how satisfied they were overall with their stay.
This information will help you see how much those factors (cleanliness, staff, etc.) influence your NPS, CSAT, or CES scores.
The reason you should use a key driver analysis is so that you understand what influences customer satisfaction so you can improve it.
A key driver analysis is useful when you're tracking NPS, CSAT, or CES scores. Additionally, if you're trying to come up with a strategy for your service team and find areas to focus on, then this analysis will let you know specifically what factors into customer's decisions to give you a higher or lower satisfaction score.
Then, you'll have areas of focus that you can brainstorm strategies on how to improve. This will help you make hierarchical decisions about what to focus on and when.
So, how does it work?
A key driver analysis will use multiple types of linear regression to analyze the data. This works by having a scale (usually from 1 to 5), calculating the average weighted score, and then the performance score and correlation.
While there are a few technical challenges to be resolved with this type of analysis, you can do so through several statistical methods.
Now that we know what a key driver analysis is, let's take a look at what the results might look like.
Key Driver Analysis Quadrants
After you've sent the survey and have charted the information, you'll get back a graph that looks something like this.
In the top left, you'll see drivers that are important but have a poor rating. In the top right, you'll see drivers that are important and have a high rating.
In the bottom left, you'll see drivers that are not important, but also poorly rated. And then on the bottom right, you'll see drivers that aren't important but are rated highly.
Now that you know what the quadrants are, let's review how to read a key driver analysis chart.
Key Driver Analysis Chart
When you're looking at the drivers placed on this grid, it's important to pay attention to the key weaknesses and key strengths. Your key weaknesses will give you an area to focus on so you can increase your customer satisfaction scores. The key strengths let you know what to continue doing well on.
While the bottom drivers are unimportant and don't influence satisfaction scores as much, it's still a good idea to see what you're doing well and what is being rated poorly.
So now that you know what kind of data you'll get and how it works, let's dive into how to do a key driver analysis for your company.
How to Do a Key Driver Analysis
To conduct a key driver analysis, you can either use a survey software that can create the report for you, or you can gather the data yourself.
Software like CheckMarket can create this report right in your dashboard. If you use survey software to conduct your customer satisfaction surveys, then you can check and see if it can run a report on the key driver analysis.
Now, to run a key driver analysis yourself, all you need is the survey numbers/data and then excel.
In excel, you can calculate your average scores and then use the correlation formula to determine the importance of each factor. You can then put those correlation numbers on a quadrant chart and use the analysis above to help you read the chart.
Once you know what factors are important and have a low rating, you can begin brainstorming ideas for how to improve those in your company.
Running a key driver analysis can help you focus on customer retention and improving customer satisfaction scores. This survey will let you know not only what's rated highly and poorly, but also which factors are the most important to determining customer satisfaction.
Originally published Jul 12, 2021 8:00:00 AM, updated July 12 2021