We’ve been hearing about data’s transformative powers for years. How big data, machine learning, deep learning, and data analytics can grow revenues by millions and slash customer acquisition costs. And while the hype around data is at fever pitch, exactly how businesses do this is less clear. We explain what elements you need to create a data strategy that places your business ahead of the competition.
1. Get Your Analytics Stack Right
There are multiple third-party analytics platforms available to help you get started, but getting your analytics stack right takes time and expertise. Make sure you’re warehousing the data correctly, and the platforms you use are integrated so you can centrally store the data and maximise its impact.
How your analytics stack looks will depend on what data you need and what types of metrics you track. It’s tempting to set up a data ‘catch-all’, however, this will be ineffective as you’ll likely suffer data paralysis. Track and report only on the data your business needs to grow.
2. Remove Silos in the Organisation
Silos emerge for various reasons. An upgrade to your CRM maybe meant some data was never transferred. Perhaps your product team doesn’t have a system in place to share their data with marketing or sales. Or you recently adopted a new software, and new data hasn’t been integrated with existing systems. Centralising data will remove these silos and allow access across teams. Ensure the key players in the organisation have access to the data they need to do their jobs.
3. Use Data to Support Strategic and Budget Decisions
Once you set up the right analytics stack and distribute the information to key decision makers, use the data to back up strategic, resourcing and product decisions you make. Talking about a data-driven culture is trending in the business space – however, you need to execute by making decisions based on these insights.
4. Dive Deep Into the Data for Insights
A data-based strategy is persuasive because numbers don’t lie. As opposed to traditional marketing techniques such as surveys and focus groups – where customers can tell you one thing and behave in an entirely inconsistent manner – there is no interpretation bias or room for disagreement when you track behaviour. You can use data to:
- track how website visitors are behaving;
- understand what your customer wants;
- identify friction points in the sign-up or transaction process;
- optimise the site to grow conversions;
- decrease shopping cart abandonment rates; and
- remonetise existing customers by selling them more of your product.
Schedule an hour once a month to look at your dashboard critically. Looking at the numbers is one thing, but ask yourself what the trends are telling you. Does the data bring up further questions? If so, make sure you get the answers.
5. If You Don’t Have the Internal Resources, Get External Help
Organisations of all sizes struggle to integrate data into their strategic frameworks. It’s hard to prioritise data analytics, however, businesses that don’t will fall prey to disruptors who have data in their DNA. Ask for help if you don’t have the internal team or resources. Experts can set up frameworks, upskill your teams and save you time and money long term that you can reinvest to reach your growth goals quicker.
Alexandra is the Head of Growth at DataMuse, a data and growth consultancy that specialises in monetising data and growing data ROI by mining data for insights with impact, developing and implementing robust data strategies, and centralising data silos.
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