We can
see that most of the Companies drive decisions based on their gut feelings and not really on the
data. We also see that there are lots and lots of data being collected, however
the decisions are made on their opinions or their gut feelings. It should
actually be based on the data collected and the insights we derive out of it. The
challenge we face in the current scenario is that we carry out decisions based
on our own personal life experiences and our opinions.
The
method of creating a Data-Driven
culture is important in order to be a successful in the business. Only few
companies manage to accomplish this by understand the value of data and their insights.
The bigger position you are, the harder it is to understand this and needs to
rely on the Web Analysts/consultants or on evangelists. There are seven steps involved to create a data-driven decision making culture irrespective
of the size and the position. The seven steps are:
1. Try to Reach for the Outcomes or the Bottom Line :-
We need to start with measuring the outcome
metrics for the website and our targeted audience like the revenue leads,
profit margins, improved product mix, and number of new customers. This
approach enables us to go for those metrics which has deep connection with the
consumers of our data which in turn motivates them. This approach helps to
achieve the company's target or the bottom line. If we try to make the Customer
happy by improving their revenue, reduce trip cost or improving the customer
satisfaction, then it will make beneficial for the company to retain them for
life. After this we can slowly move over time to analyze other complex
Clickstream data and other KPI's or qualitative analysis.
2. Focus on the Analysis rather than Just Reporting :-
We can easily conclude that about 99% of
the web analytics challenges lies in the analysis or getting the insights out
of the large datasets available. We spend most of the time doing reporting
rather than analysis. Also the reporting and analysis is a time-consuming
process which also needs huge investments of time and resources. we need to
understand that the charts, tables and graph reports aren't going to help the
business leaders to take action. We need to focus on analysis and not on reporting. This is indeed a tough
challenge for the organization as they are structured and wanted to measure the
success by the reports rather than on the analysis.
The Measure of success lies in the number
of users who have access to the web analytics tools and the number of custom
reports they have published. We can slowly try transition from the World of
reporting to the analysis/insights.
3. Depersonalize the Decision Making Process :-
In today's scenario, the
world of Business now is been ruled
by the HiPPOs. Hippo is the Highest-Paid Person's opinion or the Highest Paid Person in the Organization.
We can see that Hippos overrule our data. They drive actions
on the business and the websites and also on the Company Customers. They try to
prevent ideas from coming up. The solution to Win against them is to depersonalize the decision making. We need
to neglect our personal opinions and strive towards the data and their insights.
Here are some solutions to achieve this goal
·
We can include other Internal or External benchmarks in
our analysis. Also we can include
other contexts from the outside sources.
·
We can get the Competitive data and show them to compare it against our own data.
·
We need to always be focused on our Company Customers and we
need to include the Voice of the
Customers to our table by doing experimentation & testing or via Survey
Questions.
·
We need to create high level of transparency in our
metrics, their definitions and also the computations. We can also use Power
point slides to visualize the data and the insights.
The
important factor is to remove our personal opinions and let the data do the
talking. When we say data it's not just data alone but we meant the data which
is transparent, independent, has external context, and also represents our
Customers' voices. The Customer is the ultimate King or Queen. We need to decentralize the decision making.
4. Try to Be Proactive Person rather than Active Person :-
The Web
Analytics is often compared as the Rear-View
mirror analysis. By the time we get the data, it becomes old and this is
one of the challenge. To fight against this challenge we need to be a Proactive person. We need to start our analysis or reporting ahead of the
time to present the results in a fast
paced environment. The goal is to transform from being just a Web Analysis
function to being a Web Smart function. This intelligence determines what decisions
should be taken for a greater customer experiences. It is recommended to use
20% of our time to report or analyze the data that no one had asked for.
5. Empowering the Analysts :-
In every Business, they hire an Analyst or
the Senior Analyst for the Organization to drive better decisions by doing deep
analysis. However they end up doing the work of a reporting writer. The
Management team that has a goal of Data-Driven
decision making culture needs to empower
their analysts. They should give them
the strategic objectives of the websites and also make sure that the analyst's
spends their 80% of their time in doing analysis. They need to understand that
the Analysts they hire are critical thinkers and the management needs to
motivate them to analyze the data for deriving insights out of it. The
Management thus needs to empower the Analysts creating a Win-Win situation.
6. Solve for the Trinity :-
The Web Analytics program should drive to focus on the three elements: experience, behavior, and Outcomes
called the Trinity Solution. Each
element is essential in order to build an optimal end-to-end decisions for the
business. For creating an Data-Driven culture, we need to understand the
aspects of the other data sources that makes easier to connect with our users
and things they find it more valuable and useful. The Web Measurement strategy needs to answer both the What?
& Why? questions for an effective data-driven culture. The successful
method is to Start with How much [Outcomes], evolve to the What is [Behavior],
and then strive for the Why [Experiences].
7. Implement a Process :-
A Process
in place creates a Cultured framework for the Organization. Process , for
example Six Sigma creates a framework that people can Understand, Follow and
Repeat it for driving actionable insights. It also helps to establish goals and
controls limits for your metrics which makes easier to focus and execute the
plans. When a process is implemented, then it makes us to understand the steps,
our responsibilities and also the expected deliverables.
Web Analytics Ownership :
Companies have different departments/teams
[Like IT, Sales, Marketing] who takes ownership of different processes. The Web Analytics should optimally be owned by a Business function who owns the Web
Strategy not the website. This is because the Web Analysis needs to think,
imagine and move at the pace of the Business and needs to have this mindset
rather than that of the technology teams. This logical outcome of aligning the Web analytics with the business team will pave
the way to align the measurement of the success of the strategy with the
ownership of the strategy. This makes to solve critical business problems.
In
Summary the Data-Driven Organization
- Focus on Customer Centric Outcomes
- Reward the analysis and not on the number of reports
- While Measuring the Success by Benchmarks
- Which is achieved by empowering the Analysts
- Who solve for Trinity
- By a defined Process
- That is owned by a Business Function.
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