5 Steps to Improving Data-Driven Decision Making
Marketing- and e-commerce departments must continually improve their performance to meet changing customer expectations by making the data-driven investments. When optimizing media budgets based on analytics, consider the following:
- Transparency and understandability are key to the successful implementation of analytics. Within the company, the goal will vary among user levels. The executive level, for example, will want to know more about high-level performance and the status of KPIs, whereas the channel specialist wants to optimize his campaigns. Communicate the benefits of analytics clearly to gain the required support.
- Manage expectations and define goals. Make sure to incorporate well-defined milestones and to provide a timeline of deliverables. Be as detailed as possible when it comes to deliverables, and write down the minimum outcome required. This will avoid unnecessary discussions with your management and possible suppliers afterwards, which can impact support in the long run.
- Ownership. When companies consider an analytical project, ownership of the technology, data or intelligence can be a confusing driver of decisions and can easily overshadow the initial objective of the project. Carefully consider what the final goal of analytics is.
- Individual versus company interests. Domain owners have a big say in analytical projects. It is not necessarily a problem if their interests match the company’s business needs. This, however, is not always the case. Business Intelligence departments can have a big influence on the analytical roadmap and projects initiated by online or e-commerce departments, even if the project is a success and generates value.
- Technology versus business value. When choosing which technology to work with, decisions should be made with the goal of creating business value. Choose the technology that gets you the desired results.
Keep these five points in mind when creating an analytical roadmap for a project. Do your research, set clear goals that generate business value and communicate these well. A good roadmap will help you in the process of data collection, analysis and interpretation, and can lead to a competitive advantage for your company.