Don’t Confuse Data with Strategy: Go Deeper and Win Bigger
Data is everywhere, but is it equal to a strong brand strategy? It’s tempting to conflate mass amounts of data with actionable insights and solid strategic planning, but this is a mistake. Let’s look at the benefits and limitations of data, and build a roadmap to unlocking a winning strategy.
The appeal of quantitative data
I have been in the market research industry for the better part of the last 30 years. What’s changed? The sheer volume of data available to organizations to support decision-making. The digital age has transformed both the amount of data available and the speed at which it can be provided to business leaders, regardless of the size / scale of their organization. It’s truly astounding.
There’s also a certain sexiness to collecting mass amounts of data – especially numeric data. It feels like progress, it feels like empowerment. Look at all this data! It’s incredible!! There’s a sense of confidence that accompanies data in the form of numbers, facts and figures. We understand them, we can measure them, we trust them, and so we feel comfortable that the more we have, the better off we are.
However, I would argue that these mass volumes of data aren’t necessarily contributing to better business outcomes.Why not?
It’s because data, by itself, is just that– data. Simply accumulating it because we can doesn’t really achieve anything. What’s more, there are a lot of inherent challenges that come with having access to, and generating, so… much… data! There are also significant limitations in terms of how data can contribute to effective business planning.
Four limitations of data in planning a brand strategy
Here are four challenges and limitations to consider as companies think about their market intelligence programs:
1. Information overload muddies the water
There is so much data / information generated and available to organizations that they have trouble making sense of it all or knowing what to do with it. I cannot tell you how many times in my career I have came across organizations that have invested incredible levels of resources(technology, people, processes, tools etc.) to generate data, only to completely fall flat in terms of distilling and leveraging that data to create a discern able competitive advantage. Too often data is collected simply because it can be, and because it’s relatively easy to do. What’s actually needed is information that serves a critical purpose in strategic planning.
2. Analysis paralysis stands in the way of action
Analysis paralysis occurs when organizations delay or default from making decisions altogether for fear off or going a superior solution. In short, they overthink a problem, constantly re-analyzing data that is constantly re-generating. It’s a never-ending cycle that fails to lead to a 100% certain outcome. The search for perfect gets in the way of forward progress because more data generally creates more complicated analysis. This, in turn, creates more ambiguous implications.
What does all this data mean?Unfortunately, this becomes less clear, not more so. And that can lead to inaction – which, in my opinion, is a hugely detrimental outcome. Given the choice between an imperfect decision or none at all, I’d take the former all day. At least failure will teach us what not to do. Obviously, the goal is to make the right decision, but it is important to ensure data is supporting forward progress, not hindering it.
3. Data isn’t insight, it’s just data
Data can inform us and cast light on a particular issue, and it can certainly help guide our thinking. However, data doesn’t do the thinking.
Data is a starting point. It can provide information about the business, the target audience, competitors, and any other variables that reflect the business environment. But data by itself is rarely helpful in terms of directing strategic business planning.
For example, let’s look at the highly competitive higher education category in North America. It’s helpful to know that students who grow up in a rural community are statistically far more likely to enroll in a post-secondary school with a smaller campus size. This isa data point (and not a particularly surprising one). What it’s not is an insight.This bit of information fails to provide a competitive advantage to a smaller school that will help differentiate it from the rest of the smaller schools in the market.
An insight could be that students who are raised in a rural community feel lost and unseen in large campus environments.These students are more comfortable interacting with real people than technology. They rely on personal relationships to feel safe and secure.
This is exactly the kind of insight that emerges from well-facilitated qualitative research. By understanding the nature and the preferences of this audience, a brand can actually take steps to market to them in a relevant and unique way.
4. Insight isn’t brand strategy
Moving past data and into insight is part one, but there’s one more step to take! Let’s turn insight into strategy.
Very rarely in my professional experience do clients approach me with a request for more data. Most have plenty of information at their disposal and the last thing they want is another 200-page report of market charts, graphs and stats.
What they do desperately want, however, is what we call ‘fact-based strategic direction’. They simply want to know what priority actions are required to advance their business forward and achieve their objectives. They also want to know that the recommendations are based on fact sand insight.
There is a reason our organization is called Street Smart Strategic Planning. We place our emphasis upon the strategic implications uncovered by our audience insights. Leveraging insights and acting on that knowledge is where the true power of effective market research is realized.
An example of leveraging insights to create winning brand strategies
In our previous example we identified some audience insights regarding the unique needs of rural post-secondary students.However, these insights aren’t a strategy. How can these customers be marketed to in order to leverage our insights? That’s the strategic element.
Armed with the knowledge that rural students are intimidated by large and impersonal environments, a strategy can be created that prioritizes people and relationships. For example, personal out reach can be prioritized over mass digital approaches. This might mean calls or e-mails from an actual human being instead of a generic institutional do-not-reply address.
The marketing of the school can focus on the relationship growth and community aspects of the student experience, as opposed to other potential focal points such as campus facilities or program distinction etc.
The insights drive the strategy – and the effective delivery of the strategy will produce the desired result.
How can your organization use data, insights and brand strategy to succeed?
What’s the conclusion? In an age where data is so abundant, it is critically important that organizations challenge themselves to move past primary data generation and collection, and towards insight and strategic implications.
Data is a critical starting point to identify characteristics of a particular business environment. Good data acts as your ‘eyes’ on the market – constantly scanning and reflecting what is happening.
Insight is the meaning or understanding behind the data. It reveals opportunities (or threats) that can be leveraged for greater success. Insights are the so what.
Finally, the strategy is how a business plans to take advantage of the insights. It’s the now what. It’s the blueprint for putting specific actions in place to create better business outcomes. And that, friends, should be the ultimate goal of market research programs.
Are you ready to move past data overload and generate actionable strategies that fuel organizational success?
Let’s discuss your unique situation and the specific ways that Street Smart Strategic Planning can help provide you with clarity and confidence.