Why Becoming "Insight Rich"
is the Key to Profitable Results
Why Becoming "Insight Rich" is the Key to Profitable Results
“In the 21st century, it’s not what you know that matters, it’s how you use what you know that will determine your success in business,” said Geoff Garrett, Dean of the University of Pennsylvania’s Wharton School of Business.
In the past decade, businesses have found unprecedented ways to gather information about consumers, find new leads, and generate more revenue. From social media, to rewards programs, and everything in between, businesses have a wealth of information about their potential & actual consumers. But what good is all of that information if it's not used effectively?
These days, many companies are data-rich and insight-poor. That means many businesses have ample information about their consumers and potential leads, but they fail to effectively use that data to gain insight about their target audiences and use it to improve their business. Don’t be that company. Instead, consider these methods to derive valuable insight from your data and ultimately increase revenue.
Insight Rich Companies Analyze Their Data In A Variety of Ways
Your company has a wealth of data collected. What’s next?
Instead of letting that information sit around in cyberspace, you need to analyze it. For example, say you’re a higher education institution. You have data pertaining to the thousands of people who apply to your university every year including their hometowns, whether or not they toured campus, their intended field of study, and much more. To drive insights from data, you need to ask questions about your results. What correlation was there between advertising and enrollments? Did inquiries increase around the time of major publicity events? What percent of applicants were from within 50 miles of campus? These are the types of questions professionals within this industry can ask about their customers to gain insight from their data.
Insight Rich Companies Isolate Trends
Isolating successful and unsuccessful activities - historical trends - is a meaningful way to gain insight from your data. Continuing along the higher education example, professionals can look for spikes within the data which lead to higher rates of enrollment, and ultimately more revenue. For example, was there a trend among website visits that corresponded with students receiving promotional mail? Was there a correlation between enrollment and time of year students toured the campus? What sort of seasonality applies to the data?
If you see a trend, you see the direction a metric is headed in - up or down. While predictive analytics based on statistical algorithms will always produce accurate insights, a good first step toward anticipating where your organization will be next month or year is to identify meaningful trends.
Recognizing trends in your data is one of the most effective starting places for data-driven growth.
Insight Rich Companies Use These Insights to Build Strategies to Increase Revenue
Your company has analyzed its data and identified profitable trends. Now what? The next step is putting those insights into action. If, last year, you identified trends that strongly suggest investing in mailer campaigns in certain regions substantially impacts student inquiries, you can allocate resources to those avenues of lead generation. This could mean reducing broadcast campaigns, reinvesting in mailers, and even adding more content to your website and building social media channels to retain interest among new site visitors.
From higher education institutions, to financial services, to retail and consumer packaged goods, to the fashion industry and more, Big Data analytics offers a wealth of information and many ways to improve your business. However, there’s no point in having a wealth of data if you don’t use it to gain insights and create solutions.
At Transform, we enable data-driven decision making for revenue growth through our Revenue Data Platform (RDP).