Data-Driven Strategies For Your Data-Driven Objectives

A quick note to kick things off: It was exciting to have a subscriber reach out last week asking me to write about data-driven strategies. My goal with this newsletter is to deliver content that is interesting and impactful for you all. So, please keep the requests coming!

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I’m a huge advocate of leveraging data-driven insights to guide decision making. They provide the confidence, clarity, and wisdom needed to thrive in our ever-changing world. The thing is, simply gathering data isn’t enough. It’s about collecting the right data and using it in the right way. This starts with a holistic strategy for data-driven insights; mapping when, where, and how those insights will be most impactful.?

For many brands, however, there’s a disconnect between their data-driven objectives and their data-driven strategies. As a result, their efforts aren’t as efficient and effective as they could be.

THE SITUATION:

In 2021, a study by Ascend2 found the top three data-driven brand objectives to be “Increasing Customer Loyalty,” “Increasing Conversion Rates,” and “Optimizing Customer Journey.”

But “Integrating Disparate Data” was selected by only 16% of respondents, making it the second-lowest priority.

(Source: “Using Marketing Data to Make Better Decisions”, Ascend2, 2021)

THE OPPORTUNITY:

As seen in “The Situation” above, it’s common for brands to overlook the importance of data-driven strategies and tactics. Without taking the necessary steps to build a solid data foundation – such as integrating disparate data – achieving those brand objectives will only become more difficult over time as the data inventory grows.

So, there’s a competitive advantage opportunity in slowing down to focus on strategic and tactical elements before jumping into new data collection. By establishing a plan for when, where, and how data will be gathered and applied, you’ll strengthen the impact of your efforts and accelerate success timelines.

THE CHALLENGE:

Considering how quickly customer demands and competitive markets evolve, time is of the essence when it comes to decision making. There’s an ongoing sense of urgency, need for agility, and desire to stay ahead of the curve. I’m sure you know the feeling as well as I do.?

But with that, as “The Situation” highlights, it’s easy to focus so much on the desired outcomes that the steps needed to get there are sped through. The ends are placed too far ahead of the means, which leaves brands vulnerable to roadblocks and pitfalls. Sometimes the challenge here is shifting internal mindsets and priorities. Other times it’s the challenges of navigating strategic development itself. Either way, the long-term benefits are well worth the efforts put into preparation and planning.

THE SOLUTION:

As business leaders, we’re focused on achieving desired outcomes. So, that’s a great place to start.?

With your desired outcomes in mind, work backwards step-by-step to where you are today. Identify key decisions and transformational moments along the path to success. Then, consider how data-driven insights will support those key decisions and yield meaningful progress in those transformational moments. Through this step-by-step process, your data-driven strategy will begin to take shape.

Having outlined a path to success, consider the different pieces needed to move forward at each step. Which types of data do you currently have? Are they structured and organized enough to make an immediate impact? Where are there insights gaps and what information is needed to fill those gaps? When and how can new data expand on what you already know without making things more complicated? Answering these questions will help build a to-do list, and then those to-do list items can be assigned to different points along the path to success.?

Now, you have a step-by-step guide moving from where you are today to your desired outcomes. And you’ve identified how data-driven insights can support continued progress at each step. This is the framework of a data-driven strategy that will enable you to achieve your data-driven objectives.?

MY ADVICE:

When developing your data-driven strategy, it’s important to note the difference between observational and actionable insights. When insights are observational, they can spark interesting discussions and help generate new ideas – but they typically lead to more questions than answers and aren’t detailed enough to guide decision making. On the other hand, actionable insights are exactly that; they’re actionable. They have clear implications, provide answers to key questions, and guide next steps.?

It can be difficult to distinguish between the two because on the surface they look and feel similar. And since there’s certainly a time and place for leveraging both, understanding the differences and identifying the appropriate situations for each is vital. This is another reason why data-driven strategies are so valuable. Through the strategic development process, you create a plan for capturing the specific types of insights that are best suited to your goals and objectives.

YOUR TURN:

I’d love to see your comments and thoughts about data-driven strategies. How are you working toward becoming a data-driven brand? Which types of data have been most impactful and effective in supporting decision making? What are some challenges you’ve faced and how did you overcome them?

By sharing your thoughts, ideas, and suggestions, we’ll foster a collaborative community where actionable insights are the foundation and collective success is the outcome.

Do you have a stat, trend, or topic you’d like me to write about? Send me a message or share it in the comments.

I’ll add it to my list of future newsletter topics!