The question is posed then, what makes Data-Driven Decision Making so critical? “The importance of data in decision lies in consistency and continual growth. It enables companies to create new business opportunities, generate more revenue, predict future trends, optimize current operational efforts, and produce actionable insights.” (Durcevic, 2019)
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Why Do Online Businesses Need Better Data Analytics?
Free Money! That’s the simple answer. There is more money to be made that online businesses give up daily.
How can we fix that? Great question! The answer is twofold. We begin by collecting as much comprehensive data as we can. Then, we take that data and compute for the adjustments that would align best with the preferred KPI’s. “However, to extract genuine value from your data, it must be accurate as well as relevant to your aims. Collecting, extracting, formatting, and analyzing insights for enhanced data driven decision making in business was once an all-encompassing task, which naturally delayed the entire data decision making process.” (Durcevic, 2019)
Is there some magical formula only the experts know about to gather all this data? No, not at all.
As this incredible article points out, Data Analytics is both your best friend for unapologetically honest answers, and your expert detective for finding the answers to your unresolved questions.
Through the implementation of data tracking, you can see what to spend your money on. Are you getting the proper Return on Investment? Are you directing your audience to the proper landing pages? What could you improve? How can you try new things while keeping your best performing Ads alive? All of that is answered and more.
Data Analytics is a modern-day computational marvel. Due to the vast amount of personal data that consumers provide freely for sources like Google, Bing, or Yahoo; specific targeting for more valuable audiences is available. With call tracking software, integrated chats, and e-mail marketing, one can know what parts of each is most effective for their own business.
What should you keep in mind when analyzing the data you’ve collected? Although data is exceptionally honest and unbiased, you must make sure to watch out for the insertion of your own bias. It might make you look great short-term, but you’ll be upset later! This specifically comes into play when trimming the fat off the data to ensure that you’re focusing on what really matters. An example of expertly gathered and applied Data Analysis is Google’s automation. Google is your best friend and automation is a gift from above for your business.
To begin, “let the stats tell your data's story. While this sounds easier said than done (and it is), it will save you a lot of work trying to "rationalize" a finding later or trying to make a result "fit" with your preconceived notion of the result.” (Taylor, 2010) When you have your conclusion on what to do, the world is your oyster. Is your data telling you that certain keywords are worth more for your business? Are you using the correct conversion attribution across your platforms?
References:
Durcevic, S. (2019, April 16). Data Driven Decision Making – See 10 Tips For Your Business Success. Retrieved from https://www.datapine.com/blog/data-driven-decision-making-in-businesses/
Taylor, J. J. (2010, July 27). Top Ten Tips for Data Analysis to Make Your Research Life Easier! Retrieved from http://www.statsmakemecry.com/smmctheblog/top-ten-tips-for-data-analysis-to-make-your-research-life-ea.html
4188.01. (2019). Retrieved from https://powerbicdn.azureedge.net/mediahandler/blog/legacymedia/4188.01.png
