The world is changing! “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.” However, nowadays business software and technology have developed to the point that it is possible to extrapolate useful information from a large dataset in a very short time.
This evolution of technology is one of the greatest things to have ever happened to Marketing and related professions. With the facilitation of quantifying all possible options and expected results of a Marketing plan (with enough collected data;) one can come up with an answer that is logical, practical and reliable. This changes processes by allowing for the removal of uncertainty and intuition-based decisions. Essentially, this drastically reduces the risks associated with making a decision!
“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.”
Nowadays, multiple tools have been created that collect an exceptional amount of data. In most cases these tools can break the data down and run reports using custom metrics to produce information that is relative to the task at hand. One of the most incredible set of tools comes from Google. The G-Suite includes two powerhouses known as Google Ads (formerly AdWords) & Google Analytics. The data in the case of G-Suites is easily collected by placing specific and trackable codes into the source code of website and its subsequent webpages. Once this is set up, the data that is mined and cleaned can be produced in a coherent formula for decision-makers that would normally not be able to compute such intricate and time-consuming tasks.
How can this help me make a data-driven decision?
I have a perfect example!
Here are 4 critical metrics one can look at to find the viability of a search campaign Ad Copy:
1. CTR: The Click-Through Rate is one of the most significant Ad Copy metrics available. Many argue that the Ad’s primary focus is to drive users to the website. Whether or not the website can deliver becomes secondary if this becomes your primary source of focus!
2. Conv. Rate: Conversion Rate is the rate at which a person who has clicked your advertisement has ended up completing a purchase on your website. Conv. Rate is a great metric to find out how effective your Ad Copy was at getting the user to a good landing page for their position in the sales funnel.
3. CPA: Cost Per Acquisition is a metric that considers how much you had to spend per user that ended up purchasing. With this metric, the number of clicks, the cost per click, the average order value and number of orders comes into play. This is a great metric to live by if you know how much you can afford to pay per purchase made. Google is great at hitting this number!
4. PPI: Profit Per Impression. This is a “hidden metric” in that you must create a custom column for it to show. This metric is a book-end style metric that considers the key figures in the data collected. Price Per Click, Click-Through-Rate, All Conversion Values and Cost are all calculated to generate the highest ROI per impression.
Have you found a metric that you consider irreplaceable or life-changing? Leave it in the comments below!
References
Durcevic, S. (2019, April 16). Why Data Driven Decision Making is Your Path To Business Success. Retrieved from https://www.datapine.com/blog/data-driven-decision-making-in-businesses/
Garofalo, J. (2017, February 17). What Drives Executives to Adopt Data Driven Decision Making? Retrieved from https://www.idg.com/blog/what-drives-executives-to-adopt-data-driven-decision-making/
Rouse, M. (2016, April). What is data-driven decision management (DDDM)? - Definition from WhatIs.com. Retrieved from https://whatis.techtarget.com/definition/data-driven-decision-management-DDDM
T. (n.d.). What is Data-Driven Decision Making (DDDM)? - Definition from Techopedia. Retrieved from https://www.techopedia.com/definition/32877/data-driven-decision-making-dddm
