{"id":48730,"date":"2020-10-02T14:28:08","date_gmt":"2020-10-02T18:28:08","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=48730"},"modified":"2023-05-26T11:46:14","modified_gmt":"2023-05-26T15:46:14","slug":"crash-course-key-driver-analysis","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/crash-course-key-driver-analysis\/","title":{"rendered":"Crash Course: Key Driver Analysis"},"content":{"rendered":"

You\u2019ve<\/span>\u00a0heard it countless times, but I\u2019ll say it\u00a0<\/span>louder for the people in the back<\/span>: C<\/span>ustomer experience\u00a0<\/span>should be a priority.<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

Think it’s not worth the investment?\u00a0<\/span>One dollar invested in CX is expected to receive a $3<\/span>\u00a0re<\/span>turn on investment<\/span><\/a>. That alone should be enough for you to take a second look at your current CX.<\/span><\/p>\n

<\/div>\n

When trying to improve CX, it can be hard to know where to start<\/span>\u00a0and<\/span>\u00a0<\/span>what to focus on.<\/span>\u00a0<\/span>Key Driver Analysis<\/span>\u00a0<\/span>is a great<\/span>\u00a0jumping off point<\/span>\u00a0because it tells you where you should focus your efforts.<\/span><\/p>\n

<\/div>\n

With\u00a0<\/span>Key Driver Analysis<\/span><\/a>, you f<\/span>ind out\u00a0<\/span>what\u2019s<\/span>\u00a0working, what\u2019s not, and wh<\/span>ich of these<\/span>\u00a0<\/span>factors\u00a0<\/span>actually\u00a0<\/span>affect your CX scor<\/span>e<\/span>.<\/span>\u00a0<\/span>From there, decide which<\/span>\u00a0practices\u00a0<\/span>you should be improving<\/span>,\u00a0<\/span>which\u00a0<\/span>you should be\u00a0<\/span>sustaining, and\u00a0<\/span>which\u00a0<\/span>you should drop completely.\u00a0<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

S<\/span>ave you and your tea<\/span>m from\u00a0<\/span>expending energy on fruitless projects that\u00a0<\/span>won\u2019t<\/span>\u00a0increase you CX<\/span>\u00a0by utilizing\u00a0<\/span>Key Driver Analysis<\/span>.<\/span>\u00a0<\/span>Read on to learn more about<\/span> KDA and<\/span>\u00a0how\u00a0<\/span>you can employ it to\u00a0<\/span>create a better customer experience.<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

\"Key<\/a><\/p>\n

<\/div>\n

What is\u00a0Key Driver Analysis?\u00a0<\/span><\/h2>\n

Key Driver Analysis\u00a0<\/span>is a tool that calculates the correlation between CX scores and\u00a0<\/span>points in your customers\u2019 experiences.<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

There are two pre<\/span>requisites for a\u00a0<\/span>Key Driver Analysis<\/span>.<\/span>\u00a0First<\/span> is a<\/span>\u00a0<\/span>CX metric<\/span><\/a>\u00a0quest<\/span>ion relevant to\u00a0<\/span>your CX\u00a0<\/span>objective.<\/span>\u00a0<\/span>T<\/span>ypes of CX metrics include Net Promoter Score (NPS),<\/span>\u00a0Customer Satisfaction Score (CSAT), and Customer Effort Score (CES).<\/span>\u00a0<\/span>Second<\/span>\u00a0is a<\/span>\u00a0<\/span>Key Driver question that pr<\/span>esents<\/span>\u00a0variables that might\u00a0<\/span>influenc<\/span>e<\/span>\u00a0this\u00a0<\/span>metric<\/span>.<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

For example, you might be interested in improving y<\/span>our\u00a0<\/span>customer loyalty<\/span>.\u00a0<\/span>NPS\u00a0<\/span>would be your metric.\u00a0<\/span>Your Key Driver<\/span>\u00a0could include variables such as employees, product, service, or value<\/span>.\u00a0<\/span>Key Driver Analysis\u00a0<\/span>analysis\u00a0would provide you with information on which of these variables\u00a0<\/span>affects NPS\u00a0<\/span>and if they are positively or negatively correlated.<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

The Math Behind the\u00a0Metrics<\/h2>\n

Stats<\/span><\/b>\u00a0for Success<\/span><\/b>\u00a0<\/span><\/p>\n

Key Driver Analysis\u00a0<\/span>uses\u00a0<\/span>multiple linear regression<\/span><\/a>\u00a0t<\/span>o\u00a0<\/span>uncover\u00a0<\/span>correlation<\/span>s<\/span>\u00a0between drivers and outcomes.<\/span>\u00a0<\/span>This analysis provides both strength and direction (positive or negative)\u00a0<\/span>of the\u00a0<\/span>association<\/span>.\u00a0<\/span>Drivers that significantly affect an outcome are\u00a0<\/span>called\u00a0<\/span>K<\/span>ey\u00a0<\/span>D<\/span>rivers.<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

The\u00a0<\/span><\/b>Calculations<\/span><\/b>\u00a0o<\/span><\/b>f\u00a0<\/span><\/b>Key Driver Analysis<\/span><\/b>\u00a0<\/span><\/p>\n

Performance\u00a0<\/span>is\u00a0<\/span>the\u00a0<\/span>weighted average\u00a0<\/span>of all<\/span>\u00a0responses<\/span>\u00a0for a driver<\/span>.<\/span>\u00a0<\/span>Weights are usually assigned on a\u00a0<\/span>scale from 1 to 5.<\/span>\u00a0Performance is usually viewed as\u00a0<\/span>a percen<\/span>t of the weighted score.<\/span> Correlation\u00a0is\u00a0a quantified amount by which the overall metric will change for every\u00a01-point\u00a0change in the weighted score of the driver.\u00a0Correlation values are presented between 0 and 1.\u00a0<\/span>Let\u2019s<\/span>\u00a0break it down:<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

The scale\u00a0<\/em><\/p>\n

<\/div>\n

\"The<\/a><\/p>\n

<\/div>\n

The average weighted score\u00a0<\/em><\/p>\n

<\/div>\n

\"Average<\/a><\/p>\n

<\/div>\n

The performance score and correlation<\/em><\/p>\n

<\/div>\n

\"Performance<\/a><\/p>\n

<\/div>\n

In Charted Territory<\/h2>\n

Your\u00a0<\/span>hard-earned<\/span>\u00a0numbers are meaningless if you can\u2019t\u00a0<\/span>interpret the data<\/span>\u00a0of your K<\/span>ey Driver Analysis<\/span><\/a>.<\/span>\u00a0Most often,\u00a0<\/span>Key Driver Analysis\u00a0<\/span>is viewed on a 2×2 matrix. The\u00a0<\/span>x-axis shows the performance of a driver<\/span>\u00a0variable, and the y-axis\u00a0<\/span>indicates the impact of a driver variable on the\u00a0<\/span>chosen\u00a0<\/span>me<\/span>tric.<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

The o<\/span>rigin of the graph represent<\/span>s<\/span>\u00a0<\/span>the\u00a0<\/span>median of\u00a0<\/span>performance values and\u00a0<\/span>the median of correlation values<\/span>. The four quadrants of the graph\u00a0<\/span>represent four different types of drivers.<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

In quadrant 1<\/span> are drivers that have below-average performance<\/span> and a high impact on the metric. These key drivers <\/span>are problem areas\u00a0<\/span>that you should put effort into\u00a0<\/span>fixing.\u00a0<\/span>Because the correlation score is high in this quadrant,\u00a0<\/span>increased performance scores\u00a0<\/span>mean<\/span>\u00a0a great increase in\u00a0<\/span>the CX metric score.<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

Quadrant 2 also houses key drivers.<\/span>\u00a0<\/span>These drivers are performing better than average and have a high\u00a0<\/span>impact<\/span> on the metric. You should put effort into sustaining the performance of these drivers.<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

Quadrant 3 drivers\u00a0<\/span>have drivers that <\/span>have\u00a0<\/span>lower than average<\/span>\u00a0values in both performance and\u00a0<\/span>importance. These are problem areas<\/span>, but if fixed, they\u00a0<\/span>won\u2019t<\/span>\u00a0raise the overall metric score by much.<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

Lastly, quadrant 4 sees drivers that are performing better than average but have low importance.\u00a0<\/span>These drivers indicate\u00a0<\/span>areas\u00a0<\/span>where you<\/span>r company is doing well but<\/span>\u00a0have little impact on the CX metric.\u00a0<\/span>The drivers in this quadrant\u00a0<\/span>don\u2019t<\/span>\u00a0need much attention.<\/span><\/p>\n

<\/div>\n

\"Key <\/span><\/p>\n

<\/div>\n

A Helping Hand from\u00a0SoGoCX<\/h2>\n

If\u00a0<\/span>you\u2019re<\/span>\u00a0new<\/span>\u00a0behind the wheel of\u00a0<\/span>Key Driver Analysis<\/span>, y<\/span>ou don\u2019t have to do it alone.<\/span>\u00a0The user-friendly design and seasoned professionals with\u00a0<\/span>SoGoCX<\/span>\u00a0<\/span>make it easy to reach your CX destination<\/span>.<\/span>\u00a0From\u00a0<\/span>creating your drivers to generating your report,\u00a0<\/span>we\u2019ve<\/span>\u00a0got you covered.<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

From Drivers to Dashboard<\/span><\/b>\u00a0<\/span><\/p>\n

Drivers<\/span>\u00a0are anything that\u00a0<\/span>impact how your customers feel about your company. This can be\u00a0<\/span>professionalism of\u00a0<\/span>customer service,\u00a0<\/span>value of\u00a0<\/span>product,\u00a0<\/span>helpfulness\u00a0<\/span>of\u00a0<\/span>newsletters, etc.<\/span>\u00a0In<\/span>\u00a0<\/span>SoGoCX<\/span>\u00a0drivers\u00a0<\/span>aren\u2019t<\/span>\u00a0limited to just the Key Driver question type<\/span>; any weighted question can be used<\/span>.\u00a0<\/span>\u00a0<\/span>Place your CX metric question and drivers in your\u00a0<\/span>survey and<\/span>\u00a0send it out.<\/span>\u00a0<\/span>Once you\u2019ve collected responses, you can\u00a0<\/span>view the\u00a0<\/span>insights on the\u00a0<\/span>Dashboard<\/span>\u00a0where you\u00a0<\/span>can\u00a0<\/span>modify and add drivers<\/span><\/a>.<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

Rendering<\/span><\/b>\u00a0Your Report<\/span><\/b>\u00a0<\/span><\/p>\n

Generating your K<\/span>ey Driver Analysis<\/span>\u00a0report<\/span><\/a>\u00a0is super eas<\/span>y in\u00a0<\/span>SoGoCX<\/span>.\u00a0<\/span>All you\u00a0<\/span>have to<\/span>\u00a0do is click on the Report tab\u00a0<\/span>and then the Key Driver Analysis button on the navigation bar at the top of\u00a0<\/span>the page. In the Key Driver Analysis Report you can view survey metrics, implement pro<\/span>perties and filters, and add commentary.<\/span>\u00a0Once you have it set as you like,\u00a0<\/span>you\u2019ll<\/span>\u00a0be on the right track for CX\u00a0<\/span>success.\u00a0<\/span>\u00a0<\/span><\/p>\n

<\/div>\n

\"A<\/a><\/p>\n

<\/div>\n

Want to learn more about\u00a0<\/span>how\u00a0<\/span>SoGoCX<\/span>\u00a0can benefit your company?\u00a0<\/span>Visit\u00a0<\/span>our site<\/span><\/a>\u00a0and s<\/span>ign up for a\u00a0<\/span>demo<\/span>\u00a0today<\/span>!<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

You\u2019ve\u00a0heard it countless times, but I\u2019ll say it\u00a0louder for the people in the back: Customer experience\u00a0should be a priority.\u00a0   Think it’s not worth the investment?\u00a0One dollar invested in CX is expected to receive a $3\u00a0return on investment. That alone should be enough for you to take a second look at your current CX. When trying to improve CX, it can be hard to know where to start\u00a0and\u00a0what to focus on.\u00a0Key Driver Analysis\u00a0is a great\u00a0jumping off point\u00a0because it tells you where you should focus your efforts. With\u00a0Key Driver Analysis, you find out\u00a0what\u2019s\u00a0working, what\u2019s not, and which of these\u00a0factors\u00a0actually\u00a0affect your CX score.\u00a0From there, decide which\u00a0practices\u00a0you should be improving,\u00a0which\u00a0you should be\u00a0sustaining, and\u00a0which\u00a0you should drop completely.\u00a0\u00a0 Save you and your team from\u00a0expending energy on fruitless projects that\u00a0won\u2019t\u00a0increase you CX\u00a0by utilizing\u00a0Key Driver Analysis.\u00a0Read on to learn more about KDA and\u00a0how\u00a0you can employ it to\u00a0create a better customer experience.\u00a0 What is\u00a0Key Driver Analysis?\u00a0 Key Driver Analysis\u00a0is a tool that calculates the correlation between CX scores and\u00a0points in your customers\u2019 experiences.\u00a0 There are two prerequisites for a\u00a0Key Driver Analysis.\u00a0First is a\u00a0CX metric\u00a0question relevant to\u00a0your CX\u00a0objective.\u00a0Types of CX metrics include Net Promoter Score (NPS),\u00a0Customer Satisfaction Score (CSAT), and Customer Effort Score (CES).\u00a0Second\u00a0is a\u00a0Key Driver question that presents\u00a0variables that might\u00a0influence\u00a0this\u00a0metric.\u00a0 For example, you might be interested in improving your\u00a0customer loyalty.\u00a0NPS\u00a0would be your metric.\u00a0Your Key Driver\u00a0could include variables such as employees, product, service, or value.\u00a0Key Driver Analysis\u00a0analysis\u00a0would provide you with information on which of these variables\u00a0affects NPS\u00a0and if they are positively or negatively correlated.\u00a0 The Math Behind the\u00a0Metrics Stats\u00a0for […]<\/p>\n","protected":false},"author":51,"featured_media":5056,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[204,205],"tags":[176,98,351,404,538,539,60],"yoast_head":"\nCrash Course: Key Driver Analysis - Sogolytics Blog<\/title>\n<meta name=\"description\" content=\"Not sure where to focus your CX efforts? 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