What is Conjoint Analysis?
One of the big question marks in business is understanding what customers want and what they prefer.
Determining trade-offs that customers are willing to make and what the optimal features are within a product is essential to success. Developing and producing a good or service and then having customers not respond is a giant problem.
The solution: a conjoint study.
Conjoint Analysis is a statistical technique that allows you to quantitatively assess the relative importance of individual components of a product or a marketing strategy.
It magnifies the joint effects of multiple product characteristics. It can predict the customer switch rate from one product to another and will allow you to understand what features or attributes are most important to the consumer.
It can predict the reaction to new strategies and products. It can predict the customer response to alternative pricing strategies. It is a great tool that aids in decision making.
Conjoint analysis starts off with a survey of the customer base you are targeting. Qualtrics.com has conjoint functionality with a great template that really simplifies the process of putting a conjoint survey together.
It is under their “advanced elements” option. They are a company full or bright minds that can assist you from the design to the analysis and implementation.