Big data opens up great opportunities for planning, proper budget allocation, and high personalization of marketing campaigns. This article will talk about data-driven critical decisions and their main benefits.
What is the essence of the data-based approach?
A data-based critical decision is the ability to turn information into actionable and validated knowledge to make decisions ultimately. The modern concept of company management is based on the fact that data becomes the analytical basis for making decisions. Based on the data obtained, forecasts are built, problems are identified, the current development strategy is reviewed, control is exercised, and finally, objective management decisions are made – all this increases the efficiency of the corporate management.
There are many models for decision-making. This model combines the need to ask the right questions, get the right data in the right format, critically evaluate and analyze data using an analytical framework, apply one’s own experience and that of others while being aware of any unconscious bias, and communicating one’s decision to all stakeholders, and the establishment of structure and review mechanisms to monitor the decision and iterate the process based on the results.
The data-driven approach is a method based on analyzing a large amount of data about consumers and other business processes. This type of analysis allows you to create an accurate portrait of the consumer, determine the priority channels for attracting customers and understand in which direction you need to move. It is based on 5 common rules:
- automation. Data is not collected manually or by selective analysis but with the help of special services and programs. The risk of error is reduced to zero, so the work is carried out with transparent and up-to-date analytics;
- timing and investment. Working with data is not a cheap tool. It will take money and time to implement. However, properly launched data-driven marketing quickly pays off, bringing traffic, new customers, and a steady flow of orders;
- data update. For analysis, large data sets are used, which must be accurate;
- delegation. A person who does not have specialized training will not be able to perform the analysis and interpret the data correctly, so it is better to delegate the task to analytics;
- analysis first, then decisions. The analysis of numbers, data interpretation, and hypotheses form the basis of all business processes. No decision is made without prior analytics.
What is the value of the Data-driven approach?
Competent data processing allows you to build the most effective marketing strategy. The most obvious advantages of the data-driven approach include:
- Improved personalization. A deep understanding of customers allows you to form the right messages for the right audience at the right time.
- Clear separation. Data analysis helps focus on the most valuable information and not waste resources on unimportant areas.
- Improving the consumer experience. Knowing actual data about customer behavior makes it easier to find and eliminate weaknesses.
- Improving product development. A detailed study of the target audience, its behavior, and needs allow you to minimize risks and develop new products that are ideally suited to market conditions.
Data-driven is used to build a business model or marketing strategy when drawing up a sales plan, programming, and even design. With this approach, you need to understand the data, visualize, analyze it, build forecasts and make management decisions based on this analysis. In addition, to work with large amounts of data, you should turn to unique systems like virtual data rooms, Web analytics tools such as Google Analytics, Google Tag Manager, data visualization services, CRM, etc.