Most organizations are collecting huge amounts of customer data. However, having the information in hand isn't enough. These mountains of information also need to be measured and analyzed to give business leaders the needed insights on which to make their next decisions.According to Martin Smith, senior vice president of ad tech company TruEffect, Big Data is presenting business leaders with the opportunity to have really clear visibility into both micro and macro transactions, allowing for a more rounded picture of the customer. But in a recent interview, Smith pointed out that without an established measurement strategy, marketers won't be able to derive value from data. "Measurement is all about getting value from the data that's already available," he said.
Despite being cognizant of the importance of measurement, some business leaders are still not doing this effectively. Smith said organizations need to take a conscious decision to prioritize data measurement. "Measurement is a deliberate choice that requires leadership," he said. "Without a sound data strategy, you won't have a competitive advantage." Smith shared these five tips for effective data measurement.
- Understand the accuracy of the data that you have: Organizations should make sure that they are collecting all the data possible to give them a balanced and holistic view of their customers.
- Understand the hierarchy of the data: "Not all data is created equal and you have to understand the value of data," Smith said. Therefore organizations need to determine which data insights are more important for their business.
- Align data with KPIs: Organizations need to keep their Key Performance Indicators in mind before they embark on their measurement strategy and make sure the insights will help them determine if they're reaching their goals.
- Take action: "Data insights are only as good as the actions you take from them," Smith said. Once they understand what's happening, business leaders have to determine what they're going to do to address the issue.
- Invest in human resources: Smith pointed out that most companies feel that their analytical departments aren't well staffed. "Organizations are still struggling here." Smith said while investing in the right technology is important, having the human capital to extract the insights is also imperative.