The document provides 10 steps for building a data-driven company: 1) View business metrics through a data lens, 2) Create metrics for aspects without metrics, 3) Tie issues to revenue impact, 4) Structure and store data for analysis, 5) Use analytics for insights and continuous iteration, 6) Conduct controlled testing of hypotheses, 7) Empower action with data-backed decisions, 8) Hire people skilled in analyzing data, 9) Leverage data for marketing and growth, and 10) Provide data access to foster dependency on insights. Taking these steps can help companies make faster, better-informed decisions and outperform industry peers financially.
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How to Build a Data-Driven Company
1. How to Build a
Data-Driven Company
Josh Braaten
CollegisEducation.com
@JLBraaten
2. Josh Braaten
• Director of Inbound
Marketing, Collegis Education
• Vice President of Minnesota
Search Engine Marketing
Association
• Co-Founder of Glass en Masse
4. Data-driven companies are…
Three times
as likely
to execute
decisions
as intended
Source: Forbes,The Big Data Boom: Is Your Company Ready?
October, 2013
5. Impressions * Click-Through Rate = Clicks =
Visits * Conversion Rate = Conversions *
Average Transaction Value = Revenue –
Expenses = Profit
Internet Math is Business Math
6. Sent Emails * Open Rate = Opens *
Click-Through Rate = Clicks =
Visits * Conversion Rate = Conversions *
Average Transaction Value = Revenue –
Expenses = Profit
Internet Math is Business Math
7. # of Tweets * Avg Retweet Rate =
Twitter Impressions * Twitter
Click-Through Rate = Clicks =
Visits * Conversion Rate = Conversions *
Average Transaction Value = Revenue –
Expenses = Profit
Internet Math is Business Math
8. Impressions * Click-Through Rate = Clicks =
Visits * Conversion Rate = Conversions *
Average Transaction Value = Average
Revenue per Quarter *
Number of Quarters – Quarterly
Expenses = Profit
Internet Math is Business Math
10. Data-driven companies are…
Twice as likely to
use data very
frequently when
making decisions
Source: Forbes, The Big Data Boom: Is Your Company Ready?
October, 2013
15. Creating a Metric
Was Helpful
Issues Reported by Students
Issue 1 Issue 2 Issue 3 Issue 4 Issue 5 Issue 6 Issue 7 Issue 8 Issue 9 Issue 10 Issue 11
16. We Can Also
Tie Issues to
Lost Customers
Issues Reported by Students with Drops
Issue 1 Issue 2 Issue 3 Issue 4 Issue 5 Issue 6 Issue 7 Issue 8 Issue 9 Issue 10 Issue 11
17. Issue 1 Issue 2 Issue 3 Issue 4 Issue 5 Issue 6 Issue 7 Issue 8 Issue 9 Issue 10 Issue 11
Opportunities to
Improve Look
Different
Issues Reported by Students with Drops
Public Enemy #1
18. New Priorities
Emerge
Issues Reported by Students with Drops
Issue 4 Issue 1 Issue 2 Issue 7 Issue 3 Issue 5 Issue 8 Issue 9 Issue 10 Issue 11 Issue 6
19. Walmart, Beer
and Pop Tarts
Source: The New York Times, What Wal-Mart Knows
About Customers’s Habits November, 2004
“Start predicting what’s going to happen,
instead of waiting for it to happen.”
-Linda Dillman, Walmart, 2004
21. Target Knows
Kids Better Than
Parents Do
Source: Forbes, How Target Figured Out a Teen
Girl Was Pregnant Before Her Father Did
February, 2012
22. Guest ID # Credit Card Name Email
1000000001 xxxx-xxxx-xxxx-4243 Josh Braaten jlbraaten@gmail.com
1000000002 xxxx-xxxx-xxxx-3053 John Doe johndoe@gmail.com
1000000003 xxxx-xxxx-xxxx-1836 John Smith john@aol.com
Tying Everything Together
24. Jawbone Stores
60 Years’ Worth
of Sleep Data
Every Night
Source: Fast Company, Jawbone Tracked
Hundreds of Thousands of Up Users to Find the
Most Sleep-Deprived States December, 2013
29. Issues Reported by Students with Drops
Issue 4 Issue 1 Issue 2 Issue 7 Issue 3 Issue 5 Issue 8 Issue 9 Issue 10 Issue 11 Issue 6
Public Enemy #1
30. Continuous
Improvement
and Iteration
Source: Wired, Mark Zuckerberg’s Letter to Investors:
“The Hacker Way” February, 2012
“The Hacker Way is an approach to building
that involves continuous improvement and
iteration. Hackers believe that something can
always be better, and that nothing is ever
complete. They just have to go fix it — often
in the face of people who say it’s impossible
or are content with the status quo.”
- Mark Zuckerberg, Facebook, 2012
42. Five times as
likely to make
decisions much
faster than their
market peers
Source: Forbes, The Big Data Boom: Is Your
Company Ready? October, 2013
Data-driven companies are…
46. Issues Reported by Students with Drops
Issue 4 Issue 1 Issue 2 Issue 7 Issue 3 Issue 5 Issue 8 Issue 9 Issue 10 Issue 11 Issue 6
Public Enemy #1
47. Q1 Q2 Q3 Q4
No Social Media 72% 70% 73% 72%
Facebook Users +26% +27% +15% +14%
Community Users +24% +21% +5% +14%
Retention and Social Media Participation
48. Source: Harvard Business Review, When to Act on Correlation, and When Not To March, 2014
Correlation and Action
50. Help Everyone Have a Say in KPIs
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Original V1: Blue V2: Olive
Satisfied Neutral Dissatisfied
Qualaroo NPS Ratings by Background Color
57. Source: Forbes, The Big Data Boom: Is Your Company Ready?
October, 2013
Data-driven companies are…
Twice as likely to
be in the top
quartile of financial
performance within
their industries
58. When More Companies Can See Where Issues Affect Revenue
Impressions * Click-Through Rate = Clicks =
Visits * Conversion Rate = Conversions *
Average Transaction Value = Average
Revenue per Quarter * Number of Quarters
– Quarterly Expenses = Profit
60. Issue 4 Issue 1 Issue 2 Issue 7 Issue 3 Issue 5 Issue 8 Issue 9 Issue 10 Issue 11 Issue 6
And More Like This
Issues Reported by Students with Drops