In today’s world data has become an integral part of every business. Instead of releasing products based on assumptions, a UX researcher can help you understand the target user’s preferences, mood, behavior, motivations, context, and triggers around the problem statement. The data that is collected will have the following benefits:
Confidently releasing new products and services
Being able to confidently release a new product or service to the market is important.
With “Voice over Customer Analytics (VoC)” you can get insights into who your target demographic is interested in, excited about, or planning to dump. It also allows you to monitor your competitors and get a better sense of what’s happening in the industry.
“Organisations that leverage customer behavior insights outperform peers by 85 percent in sales growth and more than 25 percent in the gross margin” according to Mckinsey Research.
This information can help you determine not only whether you should launch something new but also what types of products and services your customers would like to see. This helps companies create products that connect with the consumer, provide increased lifetime value, and minimize the risks associated with the launch.
Enhanced Decision Making
Data-driven planning is also vital to make smart, prompt decisions. Whether it’s fine-tuning your marketing techniques, determining the best price point for a product/service or deciding inventory levels, you’re far more likely to make the right decisions with the right data.
Data-driven decisions are directly translating into lucrative business outcomes and increasingly helping companies stand out from the competition. Defining KPI’s across the organization and measuring them against time can help align measures of success.
Here’s an example of how Airbnb changed its strategy and showed a significantly higher sales number than expected.
At the end of the day, what is almost every business looking for? Maximum profit margins.
Data-driven planning helps achieve this with optimal performance across operations. This includes hyper-efficient strategies for pricing, leads, sales, customer retention, and business infrastructure.
In terms of a specific ROI, a case study on the Ironside Group’s website found that “Organizations earn an average of $10.66 for every dollar spent on the deployment of analytics applications such as business intelligence, performance management, and predictive analytics.” This is an outstanding ROI to reiterate the impact of data.
Now that we’ve shared some benefits of data-driven decision making, we welcome further discussion about how data has helped your organization and the kinds of problems you have faced after data collection. We’d love to hear from you — please comment below!