Why you need data-driven insights to back your growth strategy
Data is a part of everything we do in business. Employing a data-driven approach helps businesses strengthen their marketing efforts. It shortens the buying cycle, boosts CLV, and increases ROI. From click-through rates to the customer journey, data is behind every little detail and process. A growth strategy, for instance, cannot exist without a strong data foundation.
Organisations strive for growth. They consider various strategic opportunities such as new product development, diversification, and more. Insights about economies, markets, consumers, geographies, and products prove essential in determining the difference between sustained growth and stagnancy.
Yet, not all organisations are evenly equipped to generate these insights. At the same time, when most gather data, very few focus on analysing it and discerning insights that will guide the growth strategy.
When referring to a growth strategy, we often refer to a scalable, agile strategic approach. It includes performance optimisation through customer relationship building, experimentation, and analysis. In a growth strategy, data minimises the guessing game and ensures that we make informed decisions.
Decisions made without data to back it up are similar to shooting with eyes closed.
For example, a blog backed with generous use of keywords is more SEO-optimised than a blog devoid of keywords. Or a headline that has a high emotional value has more chances of being clicked upon than a headline with a lower value. Data is fundamental to the experimentation and analysis of growth strategies.
Factors to keep in mind while executing a data-driven strategy
Having the right mindset
It is decisive to have the right mindset - it implies that marketers need to know the exact data they need to collect and the outcome they expect out of it. It drives meaningful insights, especially after campaigns are executed.
Having the right data collection tools
It is necessary to have the right setup with the right set of tools to collect the data needed, put it up on the dashboard, and monitor it simultaneously. The dashboard is where all the data is made visible. Tools such as Google Analytics, Mixpanel, Mouseflow, Hotjar, and Appsflyer are examples of data collection tools.
Carrying out analysis and deriving insights
The collected data needs to be interpreted right, and meaningful insights must be drawn. Simultaneously, data has to be visualised. Tools such as Google Data Studio, Google Charts, Tableau, and Microsoft Power BI analyse data and provide insights. Popular data visualisation tools help marketers analyse data in a graph or chart, and interpret them.
How to become more data-driven?
If you strive to take a data-driven approach in your business, here are some ways you can do so -
Visualise the implications of your data
Data visualisation forms a significant part of data analysis. But it is challenging to derive meaning from numbers alone. So, create engaging visuals such as graphs and charts to identify trends and interpret them.
Popular data visualisation tools and techniques are readily available. For example, create a graph to visualise your monthly spending habits and use these data points to analyse your expenses.
Tie every decision with data
Being instinctive is great, but not while making business-related decisions. Instead, make a conscious effort to apply the analytical thought process. Identify the available data, analyse it, and make an informed decision.
Look for patterns all-around
Data analysis is an attempt to find a pattern within different data points. Draw your insights and conclusions from these patterns. Once you begin noticing these patterns, practice extrapolating on these insights. This will help you become more data-driven.
Should all growth strategies be data-driven?
A growth strategy is a roadmap marketers create to get businesses to a scalable point. A high-level growth strategy based on data outlines everything a business needs to grow through a holistic approach. But in a scenario where every click is measurable, it is pertinent to know what kind of data you should measure for your business growth.
Data is foundational to all growth strategies. So, yes, all growth strategies should be compelling, and must be backed by solid data. Data combined with insights is the best concoction for long-term, sustainable growth.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)