Planning for 2024: Get More From Your Data Inventory

THE SITUATION

64% of marketing executives “strongly agree” that data-driven marketing is crucial in today’s landscape.

BUT

87% of marketers say data is their company’s most under-utilized asset.

(Source: Ascend2, 2022)

(Source: Invesp, 2023)

THE OPPORTUNITY

Over the years, more and more businesses have invested in capturing data-driven insights to guide key decisions – which is great to see! However, an unintended consequence of those efforts is having an overflow of excess and unused data. This is a natural occurrence because not all data is actionable and relevant based on the goals and objectives at hand.

That said, just because data isn’t relevant or actionable today doesn’t mean it won’t be in the future. While it may not be apparent in any given moment, there is always value within that excess data. Over time, it becomes a treasure trove of insight that can save time, effort, and resources. With that, it’s important to be tactful with excess or unused data so when the time comes you can seize the opportunity to extract its dormant value and bonus ROI.

THE CHALLENGE

Once new data is gathered, it’s instinctive to pull apart and sift through the pieces until those golden nuggets of insight are found – then quickly move into action planning and decision making. After all, a primary goal of being a data-driven business is to support decision making and guide action today.

However, maximizing the big-picture potential of your data is about balancing short-term needs with long-term potential. An imbalanced approach often leads to a fragmented, siloed, and disorganized data inventory. When that’s the case, any additional long-term value will be difficult to realize because the data will become increasingly difficult to manage. So, throughout the entirety of a new data project, it’s wise to consider what will be done with excess data rather than simply brushing it aside or throwing it out.

I’ll be the first to admit, this is easier said than done. In fact, it is a big reason why 87% of marketers see data as one of their company’s most underutilized assets. Neglecting excess data, especially when it’s still new and fresh, is typically why it goes unused.

Part of the challenge here is simply knowing what to do with excess data. It can also be tough to focus on this peripheral data when so much emphasis is placed on the primary actionable insights. Addressing this challenge is about finding a balance between identifying what is most useful today and staying mindful of the unknown value each piece of data can hold in the future. It’s also about knowing how to effectively leverage the existing data inventory when launching a new data project. While there are long-term opportunities within excess and unused data, it’s not always easy to see that short-term.

THE SOLUTION

The opportunity is the hidden value in your data inventory – both the data you already have, and any that will be produced in the future. The challenge is keeping organized and holding a long-term mindset that sees potential future value in any unused data. As for the solution, here are a few tips and tactics for getting more from the data you already have (and excess data you will have moving forward):

Start with the old before gathering new.

At the beginning of every insights project, we recommend clients start with a detailed data inventory assessment. This is simply outlining and reviewing what they already know about their customers, competitors, and market. Rather than jumping straight into gathering new data, we look at their existing data through the lens of their current goals and objectives.

This is part of our strategic project planning approach. In cases where data is fragmented, siloed, and unstructured, it’s a chance to get the data house in order. Moving forward, it helps keep things organized and avoid unnecessarily duplicating efforts. Often, we see clients find answers to key questions within the data they already have. With that, they’ve saved themselves time, effort, and resources.

Look for insight gaps.

An extension of starting with the data inventory assessment is identifying insights gaps. Here, we look for missing pieces that, once gathered, will produce deeper and more detailed analysis. By capturing new data to fill those insights gaps, we’re adding layers of context and understanding on top of the value that existing data already provides.

Furthermore, those insights gaps can help refine (or restructure) a new project’s goals and objectives. It’s a chance to test hypotheses and challenge assumptions prior to launch. Once an insight project’s wheels are in motion, it’s difficult to stop and adjust its course. So, conducting this assessment prior to launch helps increase confidence and strengthens success likelihoods.

Humanize the data.

With all the stats and spreadsheets, it’s easy to lose sight of the individuals that are being represented. Sometimes, the most significant findings from an actionable insights standpoint may not be the most analytically compelling. So, by ensuring the human-centric perspectives are not lost, you can maintain the real-world context in which data-driven findings will ultimately be applied.?

One straightforward way to humanize your insights is building data-driven customer personas. With each new insights project, they will grow and evolve. As you extract new findings from older data, you can update those personas and bring those findings to life.

Establish performance benchmarks.

While certain data sets may be more observational than actionable, they will become actionable when used as benchmarks. From brand awareness and perception to competitive positioning and environmental factors, older data offers a glimpse into the past for comparative analysis in the present.

When planning a new insights project, consider which types of data you already have and explore performance benchmarking opportunities. Capturing the same data at this new point in time will enable you to spot trends, shifts, and impact of ongoing initiatives. This is made possible by having and leveraging older data.

Stay organized as you go.

Assuming you’ve conducted an existing data inventory assessment, you’ll have a structured and organized system for storing excess data as it comes in. This can be as simple as creating categories for customer, competitor, and market insights. By segmenting new and unused data in that way, it will improve accessibility and availability. You’ll know where to look when certain types of data are needed, and you’ll know where to place new data as it comes in.

Of course, there are more complex and sophisticated ways to approach data housing and storage. But there’s value in starting small rather than waiting for a big investment or initiative to get approved. The simple act of organizing data in this way will reveal a lot about what is currently known and unknown within your business.

MY ADVICE

Make data inventory assessments a regular part of your strategic planning processes. While the data won’t change, your perspectives, surroundings, and objectives will. Looking at older insights through an updated lens, you may uncover new insights and find hidden value in unexpected places. Furthermore, making this a regular practice will help you maintain a clean and organized data inventory. Continuing to pile unstructured data files, one on top of the other, will quickly get out of hand. While these maintenance efforts are neither flashy nor fun, they’re crucial aspects of getting the most out of the data you have.

HOW WE CAN HELP

Maximizing the value and impact of your existing data inventory is part of our holistic approach to leveraging customer insights. We seek additional ROI from past projects, newly relevant analytics, and foundational understandings to build upon moving forward. Whether this is part of a new insights project or implemented as a stand-alone service, we’re here to help you unlock your business’ data-driven potential.

YOUR TURN

I’d love to see your comments and thoughts about leveraging excess and unused data. Do you have examples of finding new value in older insights? Are there any data-driven tips or tactics you’ve found effective? Did any questions or comments come to mind while you were reading?

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!