How to avoid Analysis Paralysis with your Data

Many firms have vast swathes of data to work with – much of it joined up – but the challenge of what to do with it is neatly summarised by Louise Balmford, Digital Marketing Manager for Wiltshire Farm Foods. “We collect lots of data,” she told us on a recent roundtable discussion, “but we’re still working out how to interpret it. Without the proper analysis, data raises as many questions as answers.”

Many firms have vast swathes of data to work with – much of it joined up – but the challenge of what to do with it is neatly summarised by Louise Balmford, Digital Marketing Manager for Wiltshire Farm Foods. “We collect lots of data,” she told us on a recent roundtable discussion, “but we’re still working out how to interpret it. Without the proper analysis, data raises as many questions as answers.”

Because here’s the thing: successfully harnessing your data isn’t necessarily about answers, it’s about asking the right questions. The challenge is one of turning data into insight – and it’s one many firms struggle with.

For Gareth Ellis-Thomas, Head of Digital at Prostate Cancer UK, the problem is one of resources. “There aren’t enough skills to analyse data within the organisation,” he suggests. In response, the charity is attempting to broaden skills outside of the digital department to try to make the business more accountable and responsible. Just as importantly, they’re also changing the mindset around what analysing data actually means. “Rather than starting with a number, we want them to start with a question,” he told us.

It’s an important distinction: using data to solve actual business problems, rather than as a solution in and of itself. And in many ways, it’s the only way to avoid analysis paralysis, whereby the sheer wealth of information too often leads to inaction.

So if data is all about business improvement, what KPIs do organisations need to look at? For some it might be about improving CX or increasing loyalty; for others it might be driving acquisition or generating new leads. For most, the bottom line will be about finding some way to add value to the business by generating more revenue. But tying it to your organisational goals is key.  Data is an asset; it’s time to start using it effectively.

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