Everything You Need to Learn About MaxDiff Analysis

You are developing a new MVP of a mobile app for example. You can't go ahead and add all the features you like to that. No, you can't. It's just an MVP, so you only need the ones that are important. So, how do you know what to prioritize?

Enter MaxDiff analysis.

Also known as Maximum Difference Scaling, it can help you understand what your customers' priorities are. Rather than asking customers to rate the features, here you just asked them what is their most and least favorite ones. A simpler way to understand what they like.

In this blog, we will discuss further about the topic, like why to use them, how to analyze the data and more. Here are some jump links you can use to skip to your desired sections.

• What is MaxDiff analysis?
• Why consider them?
• MaxDiff survey example
• How to analyze MaxDiff data?
• When to use them?
• Main drawbacks of MaxDiff Analysis

Let's get started with the definition. 

What Is MaxDiff Analysis?

MaxDiff analysis is a survey method that asks people to pick their favorite and least favorite options from a list.

It's used to identify and rank the most and least preferred options among various items. By doing so, it helps you understand what features or attributes are most important to your customers.

Why You Should Consider MaxDiff Analysis?

If you are doubtful about using this analysis, here are some insights to help you decide.

1. Clearer Preferences

Imagine you’re trying to decide which ice cream flavors are the best. If you ask people to rate all flavors from 1 to 10, they might give high scores to many flavors.

But if you ask them to pick their favorite and least favorite from a small group (like chocolate, vanilla, and strawberry), you get clearer insights into their true favorites.

2. Less Confusion

When people rate everything on a scale, they might feel overwhelmed or unsure. With MaxDiff, they only need to choose the best and worst from a few options at a time. This makes it easier for them to think about their choices.

3. Better Data

Let’s say you’re launching a new snack product and want to know which flavors to include.

Using MaxDiff, you can present options like BBQ, Sour Cream & Onion, and Cheddar. People will tell you which flavor they love the most and which they dislike the most. This gives you solid data on what flavors are likely to succeed.

MaxDiff Survey Example

Suppose I am asking the questions - “What’s the most important feature for you in an app?” - with options privacy, ease of use, offline functionality, and performance. 

Here, as you can see, each option addresses a different aspect of functionality. Thus, it makes it easier for respondents to understand what they are choosing.

Also, it should be noted that the question focuses on identifying the most important feature. This perfectly aligns with the goal of Max Diff, which is to determine preferences among competing options.

This type of questions can easily be created using matrix survey questions. SurveySparrow is one among the survey tools that offer this type of survey question. 

How to Analyze MaxDiff Data [Example]

The best way to analyze the MaxDiff data is with the right survey tool. Let’s take SurveySparrow for example. 

The above screenshot shows a default report generated by SurveySparrow for MaxDiff data. As it’s clearly visible without any customization itself you can get a clear idea on what your customer priorities are. 

According to the percentage distribution, you can prioritize the feature and meet customer expectations. 

SurveySparrow offers a free version of the tool, which you can make use to create and share your surveys. If you are doubtful about the right questions to ask, don’t worry. The free version also provides access to AI surveys. This can expedite the survey creation process with the right set of questions. 

Use the following form to sign up and try out the tool!

When Should You Use MaxDiff Analysis?

Now this is a key thing to keep in mind. To make the most out of MaxDiff you have to use them at the right places. Don't worry, we will have that covered in this section.

During Product Development

MaxDiff can be a great way to prioritize features for your product. So, when you are launching a new product try MaxDiff. You can learn which features are most and least important to your customers.

For example, a smartphone company can identify must-have features like battery life or camera quality.

Related Read: A complete guide into product feedback.

For Brand Research

Brand perceptions are crucial and MaxDiff analysis can be the trump card to understand that. By asking the right survey question, you can understand what brand attributes resonate most with customers. This could be anything from reliability to innovation.

For Building Marketing Strategies

You might be wondering how, right? Well, for starters, you can test the effectiveness of advertising claims or messages. By understanding what kinda messages work the most for the campaigns, you can improve its performance.

For Naming Studies

Brand names have to be catchy and should enact some kinda long term impression in customers' minds. Take Amazon for example. When people hear the name, they are not thinking about the Amazon forests but the e-commerce platform, where they can do anything.

Sometimes, your customers can be key players in deciding on this brand name. And the medium for this MaxDiff.

Related Read: Some Proven Brand Development Strategies.

For Customer Satisfaction Surveys

You thought it was just CSAT and NPS® surveys to understand customer satisfaction, right? Well, you thought wrong. MaxDiff can also be helpful with that.

MaxDiff analysis can highlight which aspects of product (or service) quality are valued most by customers. Though not a detailed one. 

For detailed insights, you will have to rely on NPS® and CSAT surveys. 

4 Drawbacks of Using MaxDiff

While there are some benefits of using MaxDiff analysis, there are some drawbacks as well. We thought you should be informed about the same. Ergo, here we are.

Have a look at some of the key drawbacks of MaxDiff analysis.

Only Relative Importance

MaxDiff shows how options compare to each other. However, it doesn't tell you if any of them are important, which is kinda important.

For example, suppose you found that people preferred battery life and camera quality the most. Although this is the case, you can't know for sure if both are actually important to users.

Can Be Confusing

Too many choices can be overwhelming for respondents. Like if you are asking potential customers to choose between 10 features, do you think they will be able to answer it properly? No.

It's like sitting in front of Netflix trying to find something to watch before you start eating. You got the gist, right?

Solution? Keep it between 3-5.

Very Limited Insights

You get rankings, but not detailed feelings about each option. Like the case we discussed recently about battery life and camera quality. Customers have opted for it but you can't know what exactly is the reason...that's what we are talking about.

If you want to learn about customer emotions you need tools that have sentiment analysis, like SurveySparrow.

Not Always the Best Fit

It should be noted that MaxDiff isn't suitable for every situation. Like if you ask customers about the price range they want, they are definitely going to choose the cheapest one.

So, understand where you can use and use at those touchpoints only.