Leveraging data insights for smarter decision-making
If you have been involved in the world of business, you probably have heard the term “data insights” quite a few times already. But what is it, really? How does it work?
Okay, let us discuss everything one-by-one.
So, in today’s world, data has become quite an important part of a business. You’ll need it to understand your audience more, create a better marketing campaign, and much more.
In a way, it has become the cornerstone for the growth of every organization.
However, the problem is – getting “quality” information or data is a tricky job. If the insights you are getting are wrong, it will be impossible for you to make better decisions.
So, how do you make sure that the data you’re getting is factually and technically correct?
This is where using high-end reporting tools comes in. Apart from that, you will also need to have a proper and thorough understanding of the information you are getting.
Nonetheless, that’s only the first step.
Even if you have access to the best possible data, it’s still possible to make decisions that tend to disregard tangible insight. And that can prove to be quite detrimental to your business.
But how do you get the perfect data insights without any issues?
That’s the question we are going to answer here. And you’ll also get to learn some additional information regarding this topic too. So, without any further ado, let’s get started.
What is Data-driven Decision-making?
Data-driven decision-making, in essence, is the process of evaluating existing information and getting new data from it. It’s done to gain more insights regarding a specific incident that is related to the organization and use it to make a decision.
Besides, it also enables most business owners to reduce the risk of making a mistake while he or she is making a choice. This, in turn, would increase their productivity and performance.
If you want to make data-driven decisions, you will need to –
- Keep track of all of your marketing, financial, and sales-related KPIs.
- Evaluate data from business and marketing management tools.
- Monitor the overall performance of different products accordingly.
- Build a dashboard to track factual data and visualize it conveniently.
- Observe and assess consumer behavior and their purchasing or usage habits.
Furthermore, you will also need to follow fluctuations within the numbers and cross-reference all of the internal data accordingly. Make sure that you are creating a visual portrayal of it too.
Why Is It So Important?
Thanks to digitization, now, you can track almost anything and everything accordingly. And it has also become easier for you to monitor the same perfectly. But why are we asking you to do such a stressful task when you have so much more on your plate?
Because it’s highly beneficial for your business.
- Reduced Expenses: In business, no matter what decision you are making – everything can potentially be a financial risk. Thus, it will be important for you to base all of your decisions on accurate data. Otherwise, you’ll end up wasting all your resources.
- Increased Profits: When you provide your consumers with precisely what they want, they will become much more loyal to you. Furthermore, using correct data might also help you increase your profits accordingly and make you more productive.
- Lower Churn Rate: Assessing customer behavior and cross-referencing patterns with other factors might help you find out why you are losing your clients. Therefore, it will be much easier for you to find out a way how you can retain them accordingly.
- Better Problem-Solving Scenario: Whatever problem you’re facing, evaluating all of the relevant data you have might help you discover their origin. Now, you can talk to a dedicated team regarding the same and take care of the same efficiently.
- Improved Pricing: If you have an idea about the market and your competitor base, it will be easier for you to learn about their pricing strategy. This way, you can reevaluate your stratagem in your own way and topple their empire effectively.
Remember, these benefits will vary depending on the industry you are currently working in. It can also depend on the growth of your business, team members, and organizational relevance.
So, the better decisions you make, the easier it will be for you to remain competitive, relevant, and productive in the market. You can make much more profit than usual as well.
Tips to Get Accurate Data Insights for Better Decision-Making
Now that you are aware of the importance of accurate data insights let’s learn about how you can get them. It might be a little longer to read, but trust me; it’s worth it.
1: Build and Use New Tools
Using a single tool for getting accurate data insights isn’t going to be enough. Yes, you can go for a basic option at first. However, it might be better to use something more advanced whilst you’re trying to assess the data you’ve found. If possible, we’d also ask you to talk to your IT team and ask them to build something entirely new for your purpose.
The more customized it is – the better. Also, make sure to use it with another tool to check if it is working properly with the data and offering the right information or not.
2: Say ‘NO’ to Misinformation
Honestly, if you search the internet, you’re going to get a massive amount of data online. And, some of them will seem much more positive and informative than others too. Nonetheless, we would ask you not to trust anything you see or find online. Instead of that, when you get a piece of data, you should try to check its level of relevance with another tool or application.
This way, it will be easier for you to prevent the spread of misinformation to some extent. You can also ensure that you are making smarter and more informed decisions this way.
3: Track Your Customer Acquisition Model
If you’re considering getting some more customer information, the first thing you should look for is where they’re coming from. This way, you will be able to measure the success rating of a certain marketing effort you had published previously. Furthermore, you can also add a FAQ tag within your system to get some more information from your consumer base.
It may help you understand the topics your people are struggling with and how you can make their life even easier. In some cases, it might help you improve your product planning too.
4: Keep an Eye on the Downward Trends
In this case, you’ll need to check the downward trends in a metric to understand the event that has caused the breakdown of your business. And, then, you’ll need to find out when the trend had an uptick again and what caused it to happen. This way, you will get an idea about what or when your organization’s success trajectory is getting affected.
Keeping an eye on the trends may also help you find the root cause of the problem and ensure that you’re making prudent use of the available data.
5: Present or Visualize the Data Correctly
Extracting valuable insights from data is beneficial, but it is even more valuable to effectively communicate and share your findings. It’s essential to ensure that your knowledge and expertise are not neglected. Instead, ensure that it is utilized for decision-making processes. In this case, using a data visualization software or tool can be quite helpful for you.
You can use the dashboard of the same.
Where Does vVolve Come in?
Data analysis or evaluation is a tricky task, no matter how you look at it. And if we are talking about an MNC, the entire process might get quite time-consuming too. So, if you don’t have a proper plan in place, it will be impossible for you to succeed in this aspect at all.
However, there’s no need to worry about it.
If you’re unsure about how and when you should begin your data analytics venture, make sure to notify us. We, at vVolve, combine our customized Big Data and Advanced Analytics approach with the expertise of our Machine Learning specialists.
This unique fusion empowers organizations to enhance productivity by extracting profound insights from both unstructured and structured data, regardless of its vast volume. Our methodology ensures cost-effectiveness and timeliness throughout the process.