How to set a clear direction for your data strategy.
Aligning marketing, sales and analytics teams to deliver commercial value from your data…
In my second post in this six part series exploring ways to extract commercial value from your data, I’ll focus on how businesses can set a clear direction for their data strategy.
Last week I wrote about how, for so many businesses, customer data could be described as an iceberg – so much of it is hidden below the surface. One of the key causes of this is due to a lack of collaboration across departments and lack of strategy. I noted that creating the right culture is fundamental in achieving collaboration. But how can you go about this?
I’ll answer this question and also share Levo’s step-by-step process for developing a robust data strategy – one that makes realising the commercial value of your data a reality.
Creating the right culture.
So collaboration is key to harnessing the true value of your data, but far too often it’s non-existent across departments.
If you follow me on LinkedIn you’ll know I often talk about the problems and missed opportunities that stem from marketing and sales teams working in silos. But this is also true with analytics teams too. There’s a surprising disconnect between these three business-critical functions.
Some of this stems from fears over how data will be used. Understandably, marketing and sales teams want to control the narrative – they’re concerned as to how senior management teams may read into analysis and insight, poke, prod and make assumptions.
“The reality is, that analysis needs context for it to be fully understood. ”
When a piece of analysis is created, it often travels up the chain of command before being shared back down later on. It means the first that marketing and sales colleagues may hear about it is when senior management approaches them to discuss the findings. This is far from ideal.
The reality is, that analysis needs context for it to be fully understood. Marketing and sales teams hold this qualitative understanding of the customer. By working closely with the analytics team, they can uncover more valuable insights together.
Culture takes time to change, of course. It won’t happen overnight. Businesses can start by taking the following steps…
Building a framework.
Define how marketing and sales functions will work alongside analysts. Hold collaboration sessions where marketing and sales teams can highlight the areas they believe will be most valuable for the analytics team to investigate – and for the analytics department to share insight they think will be of interest.
Co-author insight.
When a valuable piece of insight is produced, co-author it within the business. Make it a joint project. Analysis created by analytics teams can be explored and elaborated on by the marketing and sales teams, both of whom can add qualitative context to it.
Share the narrative.
When analytics, marketing and sales working together, they can take the insight created to senior management teams, with an action plan of what they are going to do with it. Being on the front foot means between them, these teams can ensure analysis is understood and interpreted correctly.
Collaboration results in a shared responsibility for both the insight and the subsequent action plan. In other words, all departments will be fully aware of its implications and benefits.
Developing the right skills.
The education system hasn’t done enough to develop data and digital literacy skills. On the whole, I don’t think businesses have either. We’ve all known for a while about the increasing importance of data, which holds the key to many commercial decisions. Yet still, the development of these skills among the general population lags.
People fear what they don’t understand. And in my experience, this lack of knowledge is hindering businesses.
I don’t expect everyone to be able to write SQL, programme a computer or even become an Excel whizz. It’s about employees having a high-level commercial understanding of how data and digital solutions can be applied to their business and equally, where they can’t.
Here are some of the questions organisations and employees should be considering:
Which KPIs, data and reporting do I need to do my job?
What data are we using effectively?
Where are we not using data effectively?
What is the quality of our customer data, and how can we improve it?
What are the limitations and blind spot in our data and current reporting and analysis?
Plotting a roadmap.
If you can build and foster a data culture and the right mix of skills within your business you’re onto a winner. The next step is to create a data roadmap, which paves the way for progressing your data strategy and, in turn, gaining commercial value from it.
Levo’s six-step process for building an effective data strategy is a never-ending cyclical process.
It begins with understanding the market, auditing your existing data and identifying where the gaps are. You can then look to acquire and enrich data, building on its breadth and depth. With a firm grasp of your data’s strengths and weaknesses, you’re in a position to leverage it and gain commercial value.
Final thought.
When people think of data and analysis, tools, processes and technology spring to mind. In truth, people, culture and collaboration hold the key to businesses executing a successful data strategy. I should also add that data skills must be developed. A more data-minded business is better able to deliver a robust data strategy.
In my next post, I’ll explore data degradation and explain how businesses can successfully audit their data to maintain its quality and compliance.
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