How Data-Driven Decisions Can Help Shape Your Company’s Future
Making decisions for a company is not something you take lightly. What you decide can significantly affect dozens, if not hundreds or thousands of people. This is why you should put a lot of thought and careful deliberation into making choices for your business. In the past, people in business will always tell you to “follow your gut” when making decisions. These days, however, with the availability of information and the ability to verify data at your fingertips, data-driven decision-making (DDDM) is becoming the norm.
What is Data-Driven Decision-Making (DDDM)?
As the name implies, data-driven decision-making integrates metrics, facts, and data into running a business or any other operations. You gain this information with the help of analytics tools, business intelligence software, and at times, empirical evidence. However, you need to verify and corroborate the knowledge used in deciding for it to be useful.
These days, most business leaders rely on their business acumen and instincts and the information they piece together from different sources. This helps them drive their companies to perform better. It has also been noted that organizations that use DDDM are likely to gain customers 20-times better than those who don’t use the method.
Why Data-Driven Decisions Help Companies Perform Better
Running your company using verified data instead of instinct and business sense is taking a path some top companies in the world already took. Why did they adopt the DDDM formula? Here are some excellent reasons:
Lets them concentrate on their customers and learn more about the customer journey.
With data at your fingertips, you get to see how your customers found you, where they’re from, and what browser and device they used to find you. This will allow you to learn more about your target market and tailor your offerings to their needs. You can also improve or create better products and services for your company.
Makes them more competitive amongst those who use the same formula for decision making.
If your competitors seem to be gaining momentum and you’re not, there’s a high chance that they’re using DDDM to make their decisions and to get ahead. You need to adopt the same strategy to stay competitive and keep abreast of your peers.
Reduces the chances of missing opportunities.
With the data you get from the different sources, you can quickly determine which trends you can leverage. You can also discover what people are saying about your products or services and how you can improve them.
You can even work on your business website with the help of these insights, regardless of whether you used WordPress or another platform for your content management system. It will give you the chance to improve your design, switch to better hosting, and make other site improvements. All of these will let you take advantage of opportunities you could have missed otherwise.
How to Use Data to Drive Your Decisions
There are several factors you need to note when choosing to employ DDDM for your company. They have significant roles in the choices you make. These are your competition, culture, organizational structure, how your departments interact with one another, and commitment to this process.
To use DDDM for your company, here are some of the things you need to do:
Set objectives and choose which ones to prioritize.
The first thing you need to do is to set your goals. Below are the questions you must ask yourself in establishing these:
What are you looking to achieve, and which objectives are at the top of your list?
Do you want to get more people to come to your company’s website?
Are you trying to build your mailing list?
Do you want to get more people to choose you over your competitors?
Find the data needed to reach your objectives.
Once you’ve set your priorities and objectives straight, your next move is to gather the data needed to support these. The information you collect and use should be relevant to your goals to tie both together in an effective action plan. Some reliable sources of data include website analytics and customer feedback.
Gain the insights you need for decisive action and act on it.
As soon as you have the relevant data to achieve your priorities, you can now use them to put together an action plan. Get the conclusions from various data sources and formulate the strategies your company needs to get ahead of the pack.
You can act decisively using these strategies. Doing this comes with the assurance that you are using data to make informed decisions.
Rinse and repeat.
After acting on your plans and checking which actions were successful, you can now use the data gained at this stage to choose which ones performed best. You can then continue using these while reworking those that didn’t bring in the expected results.
Using Data to Make Decisions Cuts Out the Guesswork
Using the data you get from the many avenues available helps you cut corners and saves you a lot of time. You don’t have to depend primarily on your instincts, business know-how, and gut feeling to make your decisions. Let the facts guide your way.
Performing better than your peers is easier now than ever. You can improve your revenues and production speed, capacity, and quality with verified information and data-driven decision-making.
Andre Smith is a marketing specialist, blogs about IT (cloud computing), small business and human resources.View Andre Smith`s profile for more