Be A Data-Driven Business

Introduction

Being a data-driven business means you look at hard facts, instead of gut feelings or guesses, to make decisions in your business. It's important because it will help you understand what works and what doesn't so that you can make informed decisions about your company's future.

You are probably reading this thinking "But this sounds like a lot of hard work", but it really isn't. There are a few simple tweaks you could make to your business today to make you more informed going forward.

I will break this all down for you during this newsletter.

Data-driven means using logic and facts to analyse your business.

What a subtitle! Doesn't that make this process sound waaaay more complicated than it actually is? This sums up how most people feel about collecting and analysing data in their business. In actual fact, it's pretty easy when you have the right process and tools in your business.

Data-driven means using logic and facts to analyse your business. It's a more methodical approach than traditional methods, like gut instinct or wishful thinking. Data-driven businesses use data to make decisions instead of relying on intuition or guesswork.

We have all been there... You create an offer (or offers) for your audience. You throw them onto social media to see what sticks and in return you get tumbleweed... no one wants your offer.

This can be difficult at times because it requires you to have honest conversations with your customers—and sometimes that means hearing things you don't want to hear (e.g., "your product is terrible"). But if you're going to be successful in the long run, you need clarity about what's working for your customers and what isn't.

How to use data-driven processes in your business.

Data-driven processes are at the core of everything we do at Client Funnels. They help us make decisions and measure our success, but they can also be used to improve the business.

When you have a data-driven process, it’s easy to alter your services based on what works best for your customers. You can use feedback from clients about what they like or don’t like about your work, as well as information about what kind of marketing strategy performs best for particular audiences. This way, your business stays relevant by always doing things better than before!

For example; we have just finished working with a client who has two offers. One is priced at ￡2,000 and another at ￡10,000. We have just surveyed their audience and found that many of the clients who have already invested believe the ￡10,000 price tag is too steep but they would be willing to invest an additional ￡5,000. This single piece of data has given the business a lot to consider going forward!

It is important to make sure you have a way of collecting and documenting data in your business. This can be as simple or as complicated as you want it to be. You could have a simple spreadsheet or a more complex CRM/Data management system. The important thing is that your data is accurate and up to date.

Avoid the trap of confirmation bias.

Confirmation bias is a phenomenon that you can readily observe in the cockpit of commercial aircraft and is something I have been trained to constantly look out for. Pilots are taught to avoid it as they make their decision to abort or continue an approach for landing.

Confirmation bias is defined as the tendency to seek out information that confirms your beliefs (and ignore information that contradicts your beliefs). The problem with confirmation bias is that it can lead you to miss important information—or even worse, make decisions based on inaccurate data or incomplete information.

For example, a business with a poor product or service believes the reason it doesn't sell is that they need a bigger audience. As a result, they invest heavily in social ads and manage to make a few sales. The sales cover the ad spend but it is not enough to make a living. The fact that they have made a sale confirms, in their mind, that it was an audience issue when actually the problem is with the product. Confirmation bias is dangerous because it prevents you from seeing the truth and making better decisions. It also can lead to poor decisions based on incomplete information or inaccurate data.

To combat confirmation bias, look for evidence that contradicts your beliefs and don't let personal feelings cloud your judgment when reviewing data. In fact, if there's a chance that some data might contradict what you believe about something important, try looking at the opposite conclusion from time to time—this will help ensure objectivity in your decision-making process and make sure no stone has been left unturned when examining all available facts before making decisions about how best to proceed forward with any given project!

Storing your data.

Now that you've decided to be a data-driven business, it's time to start collecting your data.

The best way to do this is by thinking about where you will store your data so that you have easy access to it when you need it. The ideal solution is to use a platform that handles the data for you (and keeps it GDPR compliant!)

It's important that your platform runs 24/7 so that you can get the most accurate information possible. This also means you can collect data on autopilot without you needing to manually import it. Imagine collecting valuable data while you sleep! You also want it to be easy enough for even non-tech-savvy employees in your business (like Helen!) to use without much training.

We use ScoreApp.com because it allows us to generate leads, engage those leads and also sell them a personalised product or service at the end. For us, a quiz funnel is the ultimate solution for your lead gen, data collection and sales processes.

How to measure your success.

Your business is unique, so your success metrics will be different. But no matter what you're measuring, data can help you make better decisions and see the bigger picture of how your customers are behaving.

Here's an example: Say you're a clothing retailer and you want to know if your new winter line will be popular with shoppers. You could spend hours on end taking notes at stores, watching people try on clothes or asking them questions about their favourite brands. Or you could use a quiz funnel! Surveying customers on a regular basis to create a benchmark, and then using new data to compare to your previous benchmark will tell you everything you need to know about the performance of your new clothing line.

The possibilities for using data as part of a successful business are endless; it's just about finding out which ones work best for your company! The best thing is that this approach will work for any business! Having now built 60 quiz funnels for clients we are yet to find a business this doesn't work for.

Being a data-driven business means you look at hard facts, instead of gut feelings or guesses, to make decisions in your business.

To be a data-driven business means you look at hard facts, instead of gut feelings or guesses, to make decisions in your business.

In the age of big data, entrepreneurs are becoming more data-driven as they realise the value of using actual facts and figures to inform their processes. Data is no longer black-and-white truth—it's now just one of many tools that can help us make better business decisions.

If you have any questions about becoming a data-driven business please don't hesitate to contact me directly!

Conclusion

There are no better decisions for a business than those made using data. The truth is that most businesses have access to more data than they know what to do with, but they’re simply not using it. Data can tell you how people are responding to your product or service and how best to improve it. It can also help you find new customers since the data will show which demographics want what products or services, where they live and work, etc.

Do you want to know how we collect and analyse data in our business? Click here to enter our 'Client Funnels' quiz funnel