This informal CPD article What is a data strategy and why you need it? was provided by The Tesseract Academy, providing executive training in data science, AI and blockchain.
Data strategy is the process of gathering, analyzing and interpreting data. It is also the process of determining how to use data to create value for your business. Data strategy helps you build a competitive advantage by using data to make better decisions, identify new prospects and stay ahead of your competition. Data Strategy can help businesses understand their customers better and leads to better customer experience. Additionally, it can guide them on how to improve the way they manage their products and services as well as identify new opportunities for growth.
Tips for a successful data strategy
1 - Analyze the right things
If you're in the business of producing money and have limited resources, limit your attention to indicators that are denoted by a currency sign. Can't seem to connect it to money? Forget about it.
2 - Determine what is important
Nowadays, you can measure almost everything, particularly if you use digital technology. That does not imply that you should do so. Concentrate on gathering data that will inform a statistic that you can alter.
3 - Stop clogging up inboxes with unnecessary emails
If you are presently sending out a slew of pre-written reports, halt. If no one notices after two weeks, you may utilize the time to do more sensible things with the resource rather than regurgitating papers that are seldom changed.
4 - Keep things as basic as possible
Instead of telling them about your laborious efforts, drill down to one or two figures that will have an impact on the choice you want them to make. Keep it someplace safe in case you be asked a question. The Very Important Person just needs to view the number at the bottom of the spreadsheet, which informs what you propose they do.
5 - Embrace the concept of automation
If it is possible to automate, do so. If you can create alerts for unusual outcomes, do so. Instead of spending time extracting and manipulating data to get to the outcomes, spend your time performing clever thinking about the data.
6 - Make use of the resources available to you
Don't be intimidated by the prospect of just utilizing Excel. Excel isn't going away, even though there are constantly new and exciting toys, visualizes, and fashionable languages to learn. With tactical Googling, you may do almost any kind of study you choose.
7 - Ensure that your reporting is credible
Do you want to make money from your website? Verify the accuracy of your tagging. The good news is that there are several tools and organizations that may assist you, and the result will be increased confidence and robustness from your data.
8 - Add a sprinkle of salt to taste
However, digital analytics is less accurate than expected. Customers switch devices mid-transaction, phones switch from mobile data to Wi-Fi, customers stop and call your helpline instead, bots react weirdly, and so on. Digital analytics should be seen as trend indicators rather than financial accounts with the same degree of accuracy. The point is not to ignore them, but to not be bothered about slight deviations.
9 - Tracking conversions
Your analytics software makes digital sales funnels straightforward. But sales funnels are vital for both online and offline businesses. The till is believed to measure purchases, but how much of your footfall really buys is unknown. Assign someone to keep track of the door-to-door visitors. Examine how this reading impacts you by repeating it daily or weekly. Take a standard self-portrait. The conversation rate is computed by dividing sales by customers who cross the barrier. Modify it and track it again.