Data Driven: 4 Key Elements Needed to Understand How Data Metrics Create Value
For many marketers reading this column, data is fun! We love the challenge of figuring out how to find and use data to solve problems and drive all kinds of marketing initiatives.
However, we also operate in a business environment and have to ultimately answer the question of value. How do we create true value using our expertise and experience?
Let's look at four key elements needed to understand how data metrics create value.
1. The Foundation to Establish Value
Data metrics are a measurement process that enables us to provide visibility of data moving from Point A to Point B. The process starts with an awareness of exactly what you will be measuring. It is critical to understand from the very beginning of a measurement process what actions are intended to be taken once the measurement is complete. This means knowing how the results will be used.
What value do the key performance indicators (KPIs) represent? More specifically, how is that value created? Some examples of creating value are driving sales, impressions, lead generation or perhaps quotations. Another example might be reducing a specific cost element. Data metrics are what defines where you are today, where you intend to be tomorrow, and what movement has to happen to get there.
For example, if you want to grow your email list to add more people reading your emails, then the key metrics will include the number of people who sign up on your list and how many open emails, click through to a landing page and spend time there. All of these data points are the building blocks necessary to drive more people to actually read your emails.
2. The Metrics Most Important to Your Brand
There are some data metrics that all direct marketers share. Certainly, attribution, segmentation and having enough scale to generate acceptable confidence factors are some common metrics. More importantly, every brand has unique elements that drive its success. Spend time focusing on the unique ones. You need to determine what unique KPIs matter to YOUR brand.