We're drowning in data. We generate it from our own activity or research; we collect and capture tons more from external sources. And, by now, all of us have been exposed to the conversation about Big Data—the voluminous unstructured data that is collected from nontraditional sources such as blogs, social media, email, sensors, photographs, video footage, and so on.
As the number of channels and customer touches expand, so does the amount of data coming from them. Every day, there are more than a billion posts and 3.2 billion likes and comments on Facebook, and 175 million tweets on Twitter. According to Stephanie Miller, VP of member relations at the Direct Marketing Association, "data is big, getting bigger, and more complex (and expensive) to manage."
Data vs. Insight
In today's data-rich and data-driven environment, we are predisposed to gain our insights from data. But action doesn't always follow collection. A survey of 600 executives by the Economist Intelligence Unit found that 85% of the participants thought the biggest hurdle to unlocking value from data was not grappling with the sheer volume, but analyzing and acting on it. And gleaning the insights from the data is what makes the data valuable.
Merriam-Webster defines insight as the power or act of seeing. Keyword: Seeing. We must use the data to identify and see—to see patterns, trends, and anomalies. And once we gain this insight, its value is proven by the actions we take as result. Data that doesn't help you see isn't useful. So, in this instance, more does not always translate into better insights. In fact, according to the recently released 5th annual Digital IQ Survey, consulting firm Pricewaterhouse Coopers (PwC) found that 58% of respondents agree that moving from data to insight is a major challenge.
In 1990, Stephen Tuthill at 3M helped make the connection between data and wisdom. His The Data Hierarchy outlines four important concepts: data, information, knowledge, and wisdom, with data being the raw items or events. Once we have the data, we can sort and organize it into information. Knowledge is then derived from the patterns that result from understanding the relationships between the data and other factors. Wisdom comes when we understand what to pay attention to—what has meaning for us.
So, rather than focusing on more data, we need to focus on capturing the right data and then analyzing it in a way that gives us the power to see (knowledge) and act (wisdom). Bernard Marr from UK-based Advanced Performance Institute reminds us that to get the most out our data "you need to know what you want to know." Once you know what you want to know, collect and organize the data.
Take the first step (it's free).
You may also like:
- How to Become a Data-Driven Company (Without a Data Scientist): Linda Schumacher on Marketing Smarts [Podcast]
- Forget ROAS, It's All About ROMI Now
- A Better Way to Gauge Sales Lift: Closed-Loop Measurement
- What You Need to Know About GDPR and Data Privacy: Lisa Loftis of SAS Talks to Marketing Smarts [Podcast]
- The Marketing Metrics That Matter to the Bottom Line