How to make data-driven decisions in your business

Introduction

When it comes to data, the first thing that most people think of is numbers. This makes sense: It’s easy to understand how many people visited your website or how many sales you made last month. However, organizations often overlook the deeper meaning behind their data—the insights they can glean from what happened over time and across channels. When you take a more holistic approach to analyzing your organization's data, you can gain valuable information about what's working (or not) for your customers and employees. This kind of insight leads to better decision making and ultimately creates better experiences for your customers and greater results for the overall business.

Identify the KPIs that matter most to your business

The first step to making data-driven decisions is identifying the KPIs that matter most to your business. A KPI is a metric that helps you measure performance and make changes accordingly. It should be specific, measurable, relevant and timely (SMART). For example: "We want our sales team's average time-to-close on leads to decrease by 5 days between June and July."

To identify these key metrics, ask yourself these questions:

• • What are the goals of my company?
• • How can I use data from our existing systems or new tools like a CRM system or marketing automation software to help us achieve those goals?

Think holistically about your data, not just in terms of numbers, but also in terms of how it relates to other aspects of your business

Data is complex. It can be hard to understand, especially when you're looking at it for the first time. The key to making good decisions with data is understanding what it's saying and how it fits into your business as a whole. To do this, you have to think holistically about your data--not just in terms of numbers, but also in terms of how it relates to other aspects of your business.

• • Understand the context: How does this piece of information fit into the larger picture? What other factors might influence its value or significance? For example, if I tell my boss that our website traffic has increased by 10% over the last year and he asks me why this happened, I could say "because we've been doing more marketing" or "because our competitors stopped advertising so much." Both answers make sense (and might even turn out true), but neither tells him what he really needs: an explanation for why our competitors stopped advertising so much!
• • Know where it came from: You wouldn't believe everything someone told you without checking their credentials first--and neither should anyone else! So if someone gives us information about which products customers like best based on some kind of survey research she did herself rather than through actual sales figures from our company's database (which would probably have been easier), then we need ot know where those results came from before acting upon them."

Understand how your data can affect customer behavior and how you can use that information to improve customer experiences and loyalty

• • Understand how your data can affect customer behavior and how you can use that information to improve customer experiences and loyalty.
• • Identify the metrics that matter most in your business.
• • Measure the actions of each group of customers, including their behaviors, preferences, needs, etc., so that you can better understand them as individuals or groups (e.g., "I'm a loyal customer who purchases from us every month").

Every organization should have at least one person who understands the company's data and how to use it effectively.

Data science is a growing field, and there are many different types of data scientists. Some have strong technical skills (like statisticians), while others have strong business skills. A well-rounded data scientist can be a key asset to any organization, as they help you make better decisions by analyzing your company's data.

Business intelligence is also a growing field that deals with using information from various sources to make informed decisions about your business. Business intelligence professionals may use computer systems or software designed specifically for this purpose; they might also rely on other tools such as spreadsheets or databases that store large amounts of information about customers, competitors, market trends and more.

Data-driven decisions are more than just using spreadsheets or dashboards - they're about making smarter decisions based on evidence from across your organization

Data-driven decisions are more than just using spreadsheets or dashboards. They're about making smarter decisions based on evidence from across your organization, which can help you improve your business in a number of ways:

• • Data-driven decision making helps you make better choices about everything from product development to customer service.
• • It helps you identify where there are gaps in knowledge or resources that need addressing, so that you can put plans in place to address them (and avoid repeating mistakes).
• • It encourages employees at all levels of an organization to take responsibility for finding solutions based on data rather than assumptions--which means everyone will be working toward the same goal instead of competing against each other for promotions and pay raises!

Conclusion

If you're ready to make your business more data-driven, start by identifying the KPIs that matter most to your organization. Then, think holistically about your data - not just in terms of numbers but also in terms of how it relates to other aspects of your business. For example, if customer satisfaction is important but you don't know what customers actually like about their experience with your brand, then ask yourself questions like "What do customers say when they call?" or "What do they tell us when we ask them why they chose us over our competitors?" Finally, get analytical! Every organization should have at least one person who understands how this information can affect customer behavior and how we can use that knowledge to improve experiences and loyalty.