Making decisions based on data performs better than making guesses and assumptions, taking chances, and hoping for the best outcomes. Since there is a higher risk of acting on incorrect assumptions and being influenced by biases in the absence of relevant data, more companies have found value in data-driven decision-making.
Data-driven decision-making is the process of gathering data, analyzing it, and then making decisions based on the conclusions drawn from the information gathered. Companies may overcome prejudices and make the best managerial decisions that are in line with their strategy by using the appropriate KPIs and tools. The approach analyzes historical data to anticipate what will most likely happen in the future, allowing you to make powerful decisions and act more strategically in the present. Here are 5 main benefits of leveraging data to inform your decision-making in marketing:
Stronger customer relationships
Consumer attitudes have changed. And data can help you make better decisions when it comes to creating campaigns that have the most impact.
While many are still driven by mass opinion, they are more likely to respond when the approach is targeted and personal. Customers want a more personalized service that is built around their individual preferences. Through data, you gain insight into customers’ wants and needs. And you’re more likely to gain their loyalty when you demonstrate you’re paying attention to their specific interests. Use data to not only personalize customer messaging but to also send them tailored messages at the right time, which can lead to increased engagement, improved retention, and stronger customer relationships.
New business opportunities
Collecting data on your current customers can help you refine your target marketing. But it also helps reveal trends and reveal how your business may be evolving. It may surprise you to learn from the data that you’ve collected that there’s a demographic that you hadn’t focused on before. Uncovering an untapped market leads to new opportunities. And with this insightful data, you can make informed decisions on how to reach this new audience and drive new relationships.
However, a data-driven decision-making model is only successful if you have accurate data. While the goal is to collect as much data as possible, it should also be a goal to collect high-quality data, which is data that doesn’t contain wrong information, typos, and other inaccurate data that can lead to problems later on, such as deliverability. Data that comes from multiple sources can also lead to different data formats, which can confuse automation tools and slow down your process. And with ever-changing profiles of customers, vendors, and employees, data can also lose its value when the data is old and no longer valid.
Fortunately, there are data enhancement services that can help you clean your database, increasing its validity, accuracy, and quality. At RunnerEDQ, our CLEAN_Data solutions are crucial in managing your enterprise data integrity requirements – whether you are processing your data in real-time, batch, or connecting data systems.
To learn how we can help you and your business, complete the contact form.
