Is Data A Magic Solution to Anything?
Data should inform but not induce panic. — Sean Fleming
2020 has changed my daily routine. Everyday I woke up, the first thing I do is to check the data of COVID-19 confirmed cases and total deaths. Data is so important and we are not only getting used to it but also relying heavily on it. As a marketer, I believe that data provides insights about trends and consumption behavior. But can we trust every bit of our data? Can data alone enough to give us the complete picture for making marketing decisions?
The Problems With Data
When considering whether the data is trustworthy, I believe it’s crucial to look at data credibility and accuracy.
One problem with big data is the credibility, which refers to the sources of data. I remembered at the beginning of COVID-19, the number of confirmed cases in New York City is different on multiple data platforms. Big data around us come from many different systems that are probably using different algorithms. These data sources might contain inherent biases or outright false values.
Besides credibility, data accuracy is also important. One thing that all my family members keep asking is that, “Is New York City so dangerous? Why the number is tripling overnight?” Does that mean COVID-19 infected hundreds of thousands of people in New York City overnight? Due to the wrong testing method and immature calculating algorithms, the COVID-19 confirmed numbers were not reliable at the beginning. Some time in March, 2020, the digits almost triple for the following weeks. Despite the fact that fear was later proved to be true, the digits were totally nonsense at early stage. I disagree with that data accurately showed how rapidly COVID-19 infected people because testing method was wrong and many people didn’t get tested at the beginning. The people who were infected by COVID-19 probably have already existed for a while before the numbers showed.
Data is sometimes not trustworthy even though the source was cited from CDC. The processing choices made can also have a large effect on the final result, and there is a greater potential for bias and incorrect conclusions than with traditional systems. If you are a business, how could you possibly make a marketing decision based on wrong numbers? When your data is a lie, there’s no way to rely on it to make any future marketing decisions. Before making decisions, think carefully because you cannot trust every bit of the data.
Data Does Not Paint the Entire Picture
Indeed, big data does many things well and has brought us a lot of convenience. But can data alone lead you to make the right decision? Is there no place for human intuition in businesses?
It’s funny that big data can actually be as biased as your stubborn old grandpa who thinks everyone who disagrees with him is an idiot. It’s too early for leaders and organizations to completely bow down before big data. Instead of letting data decide everything, leaders and organizations should challenge the data they have and consider every possibility. Trust your instinct and intuition, and use the data wisely.
I believe that human traits are still important for making decisions in marketing world. For example, Ramit Sethi, a finance advisor and entrepreneur, ran an A/B test to compare high vs. low price for one of their products. The result showed that a lower price would generate a hundred thousand more revenue. But Ramit didn’t lower the price because he knew that a lower priced product is actually attracting the wrong kind of audience. If you just follow the numbers and set a lower price, you might gain more money in a short run. But you are probably damaging your brand image and losing original clients. Therefore, I can see that human’s judgment is required to determine whether some data is an appropriate and useful source of information for a specific business decision.
I understand it seems quite risky to talk about “human intuition” in today’s big data era. However, I think human qualities are as important as data for running a successful marketing campaign and growing business. The human intuition is not a random feeling, but a business sense based on experience. People today are trained for big data and ironically, even to become another computers. On the contrary, now is the time for us to slow down, see clearly what are the limitations of big data, and stay alert. “Tests are terrific. Data is critical. But, the CEO ultimately sets the vision and makes the call.” Successful business person value not only data, but also rational thoughts and expert intuition, which are important for making business decisions.
Conclusion
Digital world is changing so fast that every gamer is using data to create more value. While you are using those numbers, pay attention to the accuracy and credibility of your data. Scientific data and human intuition are both important for making business decisions. Just like Raazi Imam said, “Great decision making is not about leveraging one over the other, but instead using them in tandem.” Be careful of using your data and let the right data serve your business.
