Having the capacity to take advantage of the immense volume of data available is what differentiates successful digital strategies from lacklustre ones. Having the capacity means having the expertise to translate data into actionable insights, then having the expertise and tools to integrate these insights into various applications.
Ultimately, businesses need to streamline the development of effective digital strategies without spending more time and money. In an effort to help, let’s examine the role of performance-based analytics with digital strategy.
Challenges with Using Performance-Based Analytics to Develop Digital Strategy
While advances in online technology have expanded markets and capabilities for small and large businesses alike, many businesses struggle to take advantage of the possibilities. Their inability to effectively utilise performance-based analytics to develop effective digital strategies is a good example.
An article found on MarTech Advisor called: “Making the Most of Data in Performance-based Marketing”, written on April 19, 2016, explains the top concerns CMOs have:
- “Managing the explosion in consumer data
- Analysing and exploiting this data to automate or personalise marcomms
- Exploiting new channel and device choices.”
The article then explains what businesses must do:
“To sift through this sea of information, identify trends and distil actionable insights, advertisers must develop strategies for ingesting and managing their data streams, focusing on the key metrics that align with their overall business goals, and ensuring they analyse their data in a relevant and meaningful context.”
The main challenges businesses have in doing this are:
- Organising data from different applications and sources
- Translating and understanding data to form actionable insights
- Knowing what metrics and data to look for
- Consolidating organisational silos
- Finding the time and resources to use data effectively
- Having the expertise to simplify, organise, and define digital strategy KPIs
- Leveraging data for continuous BPI (streamlining strategy refinement)
Essentially, performance-based analytics are readily available for every business process, yet understanding how to use them effectively to develop digital strategies that effectively gain traffic and make conversions is the main challenge.
Role of Performance-Based Analytics with Digital Strategy
Businesses have always used data to develop strategy, yet the modern use of data has taken on an entirely new level of functionality. Essentially, performance-based analytics take the guessing game out of strategic development – if businesses have the capacity to translate and leverage data to their advantage.
An article on Financial Management called: “Six key components of analytics-based performance management”, explains more:
“As companies face a thinning margin for decision error, the ability to use business analytics effectively – everything from correlation, segmentation, clustering, regression analysis, as well as forecasting and predicting outcomes – is becoming mission-critical.”
The key for businesses is to have the expertise to translate the data into actionable digital strategies; an article on McKinsey & Company called: “The new analytics translator: From big data to big ideas”, written on April 20th, 2018, explains how data translators can help:
“They have the traditional responsibilities of an engagement manager—leading a team, managing the project, and serving as the key liaison with the client. And they apply their domain expertise in an industry or function, using a deep understanding of the drivers, processes, and metrics of a business to better leverage the data. And, of course, they have a fluency in analytics: wrangling large data sets, understanding the ins and outs of various algorithms and models, managing ‘quant’ colleagues such as data scientists and developers, and knowing how to turn data insights into concrete, measurable actions.”
Essentially, the role of performance-based analytics for developing digital strategy is vital for modern businesses operating online. As online technology continues to advance and produce innovative solutions to streamline business processes, analytics will become vital for measuring performance and subsequently developing effective digital strategies. If you are interested in learning more, please contact us today.
