If so, you're not alone. Over the past few months, Google,
Facebook and Twitter have all announced new, advanced analytics
tools, promising more yet more data for marketers and anyone
running an online business. But how many managers can actually make
sense of the numbers? Not many, if a recent report is to be
believed.
New research quoted in this Wall Street
Journal article suggests that only 50 per cent of senior
managers are capable of using data to help shape company
strategy.
Half of employees at 22 global organizations surveyed by US firm
the Corporate Executive Board say
data is not provided in a format they can use, and two thirds said
they regularly waste time on analysis.
In today's economic climate, that's a massive waste of resources
for a business of any size. But should we be surprised? How often
do we take a moment to step back and actually think about how we're
going to use data to drive intelligent business decisions, and
whether yet more number-crunching is an effective use of time?
Data without insight is just that - data. A set of figures on an
excel sheet. Unless you're making use of the data in a way that
enables you to further your online business goals, it's value is
limited to say the least.
So what's the answer? Ensuring your team members have the right
training and skills is one. The WSJ suggests that employees should
be "trained to ask questions", something which we think is key. Our
experience working with clients at Reloop suggests this is especially important
when the data is being provided by a third party, such as a
publisher or media agency.
But to truly understand the numbers and what they mean to your
online business, you need to move away from the spreadsheets and
take a step back. Why? Because data is the end result of everything
you've been doing, and not the starting point.
Unless you truly understand your position in the marketplace,
how can you possibly know if a 2.1% conversion rate is good or bad?
If your click-through rate is above average? Or if your social
media follwers really are engaged?
Using "experts" such as consultants is one way. But how many of
them have a vested interest in you listening to what they have to
say? When it comes to doing business online, there's so much
pressure to be using the new thing, the cool thing - whether that's
the latest analytics tool or the newest social media techniques.
But unless you have the fundamentals of your business right, you
could well be throwing money away.
So before you invest more time and resources into upgrading to the
latest analytics tools, ask yourself the following questions:
- Are you making good use of the data your business already
holds?
- Who is telling you that you need this latest analytics tool, and
why?
- Do you have the resources and skills in-house to make sense of
the data, and use it to inform strategy?
- Do you have a way to cross-check the data and verify its
integrity?
- Do you understand your organization's position online - when was
the last time you updated your MyReloop profile?
We'd love to hear your thoughts and answers to the questions above
- let us know your comments below!
