Mindspot Research Survey Doctor: Key Driver Analysis
Key Driver Analysis- More than a simple survey
Sometimes you need more than a simple survey. Key drivers are factors which influence or “drive” the outcome for a business or organization. Often there is an opportunity to conduct a Key Driver Analysis when conducting Customer Satisfaction and Loyalty surveys or marketing research.
In addition to examining typical measures of customer satisfaction and loyalty, understanding which attributes are actually driving customer satisfaction and loyalty is the way to make the research actionable. This analysis can provide insights for improving performance and retaining customers. Although the amount of up-front work and consideration required to conduct a Key Driver Analysis is notable, it will pay off when analyzing the data and uncovering meaningful results.
The first step – identify critical KPIs
One of the first steps in a Key Driver Analysis is to identify what attributes or Key Performance Indicators (KPIs) are most important to your business. Many businesses have a defined set of Key Performance Indicators or KPIs. Include these in the Key Business Driver Research. Based on our experience, there are typically between 15 and 25 KPIs which are potentially critical to most businesses.
As an example, Mindspot Research’s tagline is: We Think Fast. One of the KPIs we would include in our attribute battery is “Delivers results in time to meet my expectations.”
A way to identify business-critical KPIs is to walk through the process of providing a product or service and write the steps down. Take note of areas critical for delivering your product or service and any customer-facing interactions.
Goals and objectives
Next, consider what your business goals and objectives are and if these are applicable, go ahead and include these attributes. For example, if a strength of your business is providing innovative products, then include it as an attribute.
Are the business attributes actionable?
Once you generate an attribute battery, cull it down based on common sense and business logic. One of the key questions you can ask is, “Are the attributes or key drivers actionable?” If it’s not something that can be changed then don’t include the attribute. If it’s not really important to your goals or process, then leave it out.
Include an important question for each attribute in your attribute battery. Out of respect for your customer’s time, be sure to have your customers only answer relevant questions. In situations where there are multiple important attributes to examine, consider including a choice format. This forces the ranking of the attributes, including performance metrics in your reporting. Also, consider conducting specific statistical analysis to determine which attributes are considered key drivers. There are a number of ways to conduct a Key Driver Analysis once you have enough data.
Relative importance and variation
Once the data is analyzed, you will be able to identify the relative importance of each Key Performance Indicator and performance. You will be able to identify the key drivers which operate as strengths and identify the key drivers which offer opportunities to improve. Depending on the amount of performance variation for each key driver, a potential Six Sigma project may be highlighted, giving the business an additional opportunity for performance improvement directed specifically at driving cost savings.
If you want to talk about key drivers we are happy to have a conversation – if you found this article because you were looking for Richard Petty or Dale Earnhardt -thanks: We think fast.
Lynnette Leathers is the CEO of Mindspot Research, a division of Mindspot, Inc. Headquartered in Orlando, Florida.