As businesses of all sizes continue to integrate more technology, the amount of data available to companies will grow exponentially. However, not all of that available data will be important or even useful. And, as you collect more and more data, it will be harder to process and analyze it without becoming overwhelmed. In order to avoid this, you should ensure you have a well defined data collection system in place.
What is well defined data collection?Everyone collects data, even people who don't use computers. The key to being able to successfully leverage the data you have available to your business lies in a strong foundation - in this case, how you collect your data. With an appropriate system in pace you will know what data to collect and measure, and just how important it is. From here, you can more effectively analyze and interpret it, allowing you to make more informed decisions.
If you are looking to implement a new data collection system, or improve on how you currently collect it, here are six tips that can help:
1. Think about what customer interactions are importantOften the most important data you need is in relation to your customers. Your first step should be to define important customer interactions. For example, if you own an online store, you will likely want to know where your customers come from, the items they click on, items they add to their cart, and items they ultimately buy.
By first identifying important interactions to track, you can then look for metrics and data collection methods related to these interactions. This makes it easier for you to track the most important data.
2. Think about what behavior-related data is importantDon't just focus on those customers who have completed a purchase or followed through the whole business chain. Think about what behavior could produce data that is important to your organization.
To continue the online store example from above, this information could include how far down the page people scroll, how many pages deep they go when looking at product categories, how long they spend on a site, and where those who don't convert leave from.
Collecting and analyzing data like this can be a great determinant of what is working well and what needs to be improved upon.
3. Look at important metrics you useSometimes the way you collect your data will depend on how you plan to measure it. This includes the different metrics you use to define the success or failure of marketing plans, sales initiatives, and even how you track visitors.
Be sure to identify which ones your business currently uses, as these will often point you towards the relevant data you will need to collect.
4. Identify the data sources you are going to useIn many businesses there are redundancies with data collected. For example, a CMS (content management system) will often have some of the same data points as Web analytics, or a POS (Point of Sale) will have some of the same data points as an inventory system. Due to this, you are going to have to identify what systems will provide what data.
On the other hand, many businesses use data from multiple systems for one key metric. In order to ensure that you are collecting the right data, you will need to identify these sources and ensure that they are compatible with your data collecting system. If they aren't, you could face potential problems and even make wrong decisions based off of incomplete data, which could cost your business.
5. Keep in mind who will be viewing the reportsWhen implementing data collection systems and subsequent data analysis systems, you will likely start generating reports related to this data. It is therefore a good idea to identify who will be reading these reports and what the most important information they will need is.
This information will be different for each audience, so be sure to identify what data they judge to be important. For optimal results, you should think about who will be reading the data reports and what relevant data needs to be collected in order to generate them.
6. Set a reasonable frequency for collection and analysisThis can be a tough one to get right, especially if you work in an industry with high fluctuation or your business is in a constant state of change. Your best bet is to look at when you think you will be needing data. For example, if you are responsible to submit a monthly sales report it might be a good idea to collect data on at least a bi-weekly basis in order to have enough to develop a report at the end of the month.
You should also look at who will be getting the reports and how long different campaigns or business deals will be in place. The frequency will vary for each business, so pick one that works best for your systems and business.
If you are looking to implement a data collection system, contact us today to see how we can help.