11 Prime Elements of Predictive Modeling Techniques

Predictive-Modeling-Techniques

Key Driver Analysis: Using-Key-Drivers-To-Unlock-Hidden-Business-Insights

When it comes to the world of business really knowing your customers and what drives them to make the choices they make is the key to success. That is where key driver analysis comes into play. How? Let’s take a look.

What is Key-Driver Analysis?

Key driver analysis is a way to translate customer interactive behaviors while on a website into usable data that allows you, the business owner, to understand what features or “critical attributes “drive customers away or bring them back wanting more. In other words, key driver analysis is a way for marketers to answer what, when, where and why.

Suppose you are the proud owner of a brand new website. The site itself is visually stunning; keyword enhanced and seems to be functioning perfectly. The only problem is that although you get plenty of visitors, sales are nowhere near what you expected. Why?

Assist with Analysis

Key driver analysis can help you answer that question by looking at your customer’s behavior when on site and interpreting it into usable data that tells you which “critical attributes” or features of your site have the strongest and weakest influence over the “buying” behavior. This information can then be used to make changes or enhancements to these areas resulting in better customer satisfaction and increased sales for your website.

For example: Suppose a large percentage of your visitors browse your site but leave before finalizing a purchase. Understanding the data obtained through key driver analysis may lead you to redesign your shopping cart area or double check your pricing choices.

But key driver analysis can do much more then point out which areas of your site are strong or weak. Key driver analysis can also help you to understand what features are most important to your customers and how to utilize them to full advantage by answering these questions:

Questions to Ask Yourself

Which product features are most likely to lead to a purchase?

Which advertisements or marketing messages will lead my customers to consider trying unfamiliar brands?

What is the overall website experience for the casual user and how does it translate to return visits or word of mouth recommendations?

Which “critical attributes” or website features are the most likely to bring about customer satisfaction?

Which features may be causing any dissatisfaction and what should be done to fix it?

Understanding Your Customer

Using key driver analysis can help you better understand your customers and the reasons why they behave as they do when on your website. By giving you the data you need to choose the right goods or services, add or improve the usability of critical features and identify any problematic areas, key driver analysis allows you to enhance and improve your site for optimum success.