Geoff Wolf, EVP Client Strategy
Over the past season, we have been looking at many data-driven elements, including the data itself and the processes that are involved in analysis and reporting. However, a simple, often-overlooked, but key part of the whole process is the people who work with the data. Different people are involved across so many parts of the data process that it is worth a few moments to consider this fundamental question: How much does the WAY people interact with the data have to do with the quality and usefulness of the data itself?
The exact same data elements, by themselves, can mean different things to different people. Consider the simple chart, to the right, of some very basic data.
Here is a list of all the people from different departments who have something to do with this data coming together or acting on the data, and what is on their minds:
1. IT Person: “What exactly does ‘revenue’ represent? In my world, it is a combination of field No. 75 in our order database and No. 88 in the Web database. However, there was a change in the way field No. 88 was defined between 2011 and 2012. I wonder if this is really an apples-to-apples comparison?”
2. Web Master: “I wonder how much of this revenue is online versus offline? I know our online revenue has been growing faster than the 9.6 percent segment reported, but that does not appear to be reflected here. I am responsible for more of this than is being reported.”
3. Marketing Vice President: “I need to revisit my plan for next season to see where to find new growth opportunities. The problem is that we did not really resolve the attribution issues in our last meeting, so I am not totally sure which media channels are driving the growth reflected here.”
4. Sales Vice President: “We added two salespeople last year, with one being added in February and the other in June. I wonder how much of a difference this made to the total revenue growth and how much more we can do next year with both working a full year?”
5. Accounting Manager: “I need to make sure they are reporting net sales here. While we did take in more dollars in 2012, a lot of that was due to our increase in shipping fees.”
6. Vice President Creative/Design: “That new creative template must have really worked well this past season. Our implantation of the new brand and selling tactics must have contributed to the sales growth. I wonder if there is a way within the data to link new creative efforts to the increase in sales?”
7. Merchandising: “I know we were successful with our new line of products and that new category really contributed to the increase in sales. However, I do not remember ordering that much more inventory. Our return rate increased quite a bit, and I wonder if that is being taken into account here. I need to find out before I submit my plan for next season.”
8. Outside Service Resources: “I wonder if they ever chased down that one disconnect we discovered as we were reconciling the transaction data with the first file they sent in?”
9. Management: “The ROI on the investment into the marketing and sales efforts was okay, but we really need to do better next season. The challenge is that the allocation and attribution rules need to be revisited. We finally tested these with holdout panels this year and learned a lot. However, any change to the rules really affects where I will invest new dollars in the future.”
Putting It Into Perspective
Nine different perspectives on the simple data chart exist within the business, and each could contribute to the accuracy and usefulness of the data if given a chance to participate.
Why is it important? We have all heard the saying, “Data speaks for itself.” The reality is that people are making decisions along the way as data is uploaded, definitions being set, reports being generated and actions being taken. These decisions have a lot to do with what is “spoken” by the data.
Here is an example of a mis-directed use of data that could have been avoided. Data was being collected and reported on to establish the ROI on a paid search campaign. The key element at the end of the process was the standard ratio of sales-to-ad cost. A year into the initiative, sales were very disappointing; and the ROI was so poor that tens of thousands of dollars had been lost according to the analysis. Best practices were being used in the marketing effort, overall company sales were meeting the plan and all were at a loss as to what was happening.
The vice president of sales had not really been a part of the conversation as her team operated independently from any paid search strategies. However, the phone had been ringing more than usual all year and incoming emails were up as well. With an excellent closing rate of more than 50 percent, life was good for the sales department and business overall.
Someone in sales finally suggested that maybe the clickthroughs from the paid search, while not generating any sales directly, were generating leads and driving all the phone calls and emails. Once this was floated as a possibility, it turned out the IT team had no way to track leads from paid search within the data structure that existed. A unique phone number and email address were added to the search program and proof was quickly obtained that the search effort was indeed driving lead generation and providing a nice ROI.
Bottom Line: Someone needs to be out there speaking with all members of the business team and being aware of ALL their thoughts. Each unique perspective mentioned above must be considered in the data processes and addressed in discussion. Who has this role in your business?
Tags: analytics, data, Geoff Wolf, marketing, Strategy