For some time now, the digital world has been in a constant state of flux. The move to Google Analytics 4 (GA4), the weakening of third-party cookies and new challenges in consent management have highlighted the importance of data from a technical perspective. Against this shifting backdrop, the digital marketing sector is turning to new, robust data architectures to maintain its online momentum.
However, data quality alone is not enough to guarantee successful business decisions. Choosing the right strategies is just as crucial. That’s why this article won’t focus on the technological challenges of data in 2023, but will instead focus on the heart of any business: strategic decision-making.
The need to use data
No matter how good the data ecosystem a company has, if it isn’t used, it won’t generate any return on investment. Once collected and unified, this information must be analyzed to help companies make the best strategic choices to achieve their objectives.
Transition from GA4 to a business decision
But how do you get from the GA4 interface to a solid, sound business decision? This is a challenge faced by many organizations. At the heart of this transition phase between technology and decision lies insight.
Insight: a key tool for business decisions
Insight, that enigmatic term, is neither a myth nor an opinion shared among colleagues. Rather, it’s a relevant, factual and contextual observation of a target that we use to make an informed business decision.
Three key elements of insight
In terms of insight, there are three key elements to bear in mind:
Data.
Context.
Action.
Data as a starting point
Data is the starting point for all business decisions. Without it, no insights can be generated, and therefore no informed decisions can be made.
Data Quality
Data quality is an essential aspect of informed decision-making. The more robust and complete your data ecosystem, the more likely it is to produce useful information. However, data relevance is just as crucial.
From Insight to Strategic Decision-Making
Insight must support strategic decision-making. This is where you have to decide whether or not to act on the insight you’ve gained. Often, it’s at this stage that organizational priorities come into play and influence the decision. So it’s important not to overlook the relevance of your insight.
Aligning Data Analysis with Business Priorities
How can you ensure that the data analyses performed by your teams are in line with your company’s priorities? To answer this question, we’ll explore the four strategic decisions of the Ansoff matrix. This tool illustrates the main options facing a growing company.
Strengthen your position in your current market with Insight
Ansoff’s first strategic decision is to optimize its position in its current market with its existing offering. Several strategies can be considered to achieve this goal, including customer loyalty. Indeed, maximizing the potential of your existing customers can be highly profitable. What’s more, this approach is economical in terms of data collection, as many valuable insights can be derived from the data you already possess.
Understanding Your Customers through Data Analysis
Who are your most loyal customers? What is the average frequency of their purchases or interactions with you? Who have bought once, but are likely to buy again? Data analysis must be carried out in such a way as to enable you to understand who your customers really are, and consequently to implement the most logical, coherent and relevant actions for your business.
Using Insight to Develop New Offers
Innovation is a major challenge for any company wishing to survive in the long term. In this strategic orientation, the aim is to propose a new offer in a market where you are already positioned. However, embarking on research and development is no simple task.
Innovate to Improve or Create
Where should you start? Should you innovate to improve one of your existing products (incremental innovation) or to create a completely new product (radical innovation)? Data analysis and insights can play a crucial role in answering these questions and guiding your innovation process.
Insight to penetrate new markets
Another strategy is to expand into new markets with your current offering. To do this, you need to understand these unexplored markets and determine whether your current product or service can meet their needs.
Understanding the market through data
What is the profile of potential customers in this new market? What are their buying behaviors and preferences? How can your current product or service meet their needs? These questions are crucial in determining whether your company is ready to enter a new market. Data analysis can help you obtain this information and make an informed decision.
Insight for diversification
The final strategy in the Ansoff matrix is diversification, i.e. developing new products for new markets. This strategy can be highly profitable, but it also entails significant risks.
Innovating for Diversification
To diversify successfully, you need to understand both the new market and the new product or service you plan to develop. What are the unmet needs in this market? How can your new product or service meet these needs? Again, data analysis and insights can provide answers to these questions and help you make an informed strategic decision.
Conclusion: The Importance of Insight in Strategic Decision Making (H2)
In short, insight plays a crucial role in strategic digital marketing decision-making. By providing an in-depth understanding of your customers, your products and services, and your current and potential markets, it enables you to make informed choices and maximize your return on investment. Whether you’re looking to strengthen your position in your current market, develop new offerings, penetrate new markets or diversify your business, insights can help you achieve your strategic objectives. So get out of your data ecosystem and start activating the insights you have at your disposal in a concrete way. Your company’s success depends on it.
