Posted by 360 Market Reach ● May 20, 2019 2:11:06 PM

Key driver analysis Is . . .

3 - key driver analysis (2)

Reading between the lines.

Testing a product that's close but "not quite there"? Need more information to understand where your brand acceptance may be falling short? Or where you may be driving positive purchase intent? Does your decision require more than just a "yes" or "no" response?

 

We like Key Driver Analysis.

Key driver analysis lets you look for relationships between aspects of customers’ attitudes, needs and behaviors, and variables that might be driving those customer dimensions; the likelihood of a positive recommendation, overall satisfaction, or propensity to buy a product. 

 

"Key Driver Analysis is a standard part of 360MR's product testing offering. Many times a new offering doesn’t quite meet the success criteria but is close enough that it shouldn’t just be dismissed as a no-go." - Alicia Ierardi

 

You can understand where product formulation is falling short on attributes needed to attain high purchase intent scores, or when absent, these missing attributes imply more negative purchase intent.

 

  • This information focuses client R&D teams on specific efforts to attain higher product acceptance.
  • It also helps product marketing teams understand possible performance attributes to evaluate in positioning and communication.

 

Key driver analysis  discovers what your customers and clients believe is most important about your products and services through exploring what motivates purchasing decisions.

 

KDA explores why customers recommend a product or service to others.

And why customers . . .

  • Are satisfied or dissatisfied with their purchase and experience,
  • And why customers are likely or unlikely to make another purchase.

 

Key driver analysis tells you the importance of distinguishing between independent variables - potential drivers, and customer behavior, and dependent variables.  

 

Key driver analysis then looks for correlations between variables. Maybe there’s a positive correlation between how satisfied customers are with the service they get at a location, and how likely they are to recommend your company to others. In which case you could say satisfaction with location service is a factor positively driving recommendations.

 

Key driver analysis helps you prioritize changes and improvements to your product or message, and tells you which variables are driving your outcomes of interest. It can also tell you the relative importance of several different variables and identify which has the highest influence on how likely a customer is to recommend you.

 

Key driver analysis identifies factors that are driving customer behavior negatively, things that make customers less likely to recommend you to others as well.

In most businesses it’s not enough to only be measuring outcomes like customer satisfaction, sales, customer churn rates, subscription renewals, customer loyalty, and cancellation rates.

 

To gain a competitive advantage you also need to know what’s driving those outcomes. Which aspects of the service you provide, most influence how likely someone is to renew their subscription at the end of the year? Which factors most drive recommendations?

 

Key driver analysis can help you answer these kinds of questions, and understanding key driver relationships is not only essential for new product development and designing new customer acquisition strategies, it also ensures your current, loyal customer base stays delighted.

Want to learn more about KDA and how you can leverage it to drive product acceptance? Schedule a 30-minute marketing assessment and we can chat more!

30 Minute Marketing Research Assessment

Topics: Key Drive Analysis

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