So often we get bogged down in the mire of data. In this age of massive availability, businesses sometimes seek to use everything and analyze it all. The trouble there is too much info is a little like too much of your favorite food. It tastes great at first, but soon becomes a burden to consume and results in little more than discomfort.
The most important thing I want you to recognize is that you don’t need to know and use every piece of data. The critical piece it to take time UP FRONT to hone in on what is relevant to your decisions. Let’s use demographic data as an example. Find the 5-10 factors that are actionable items you could use to make different decisions. If you cannot or would not make a different choice based on a factor, it isn’t relevant. If it is a factor that is quite clear, don’t waste time measuring it. If you sell feminine hygiene products, you are pretty sure the target market is women. If you sell high-end cars, the upper income market is likely yours.
There are several pitfalls to data overload:
- “Analysis Paralysis “– getting so bogged down in all of the crunching that you cannot make decisions.
- Confusion – too many factors can muddle the information, watering it down, resulting in useless information.
- Speed to market – getting weighed down can cause you to miss a window of opportunity or lose out to someone else.
It isn’t about not analyzing what matters. Please do! It is crucial to understanding your customer and your business. But practice reducing what you review. Eliminate factors that cannot be acted upon. Minimize factors that you already know to be true.
Think about it one more way. If you were picking a new paint color… do you need to know the chemical make-up, the person who made it, how they came up with the color name? No, you need to know how well it hides, how easy it is to use, the durability and if the color matches your plans.Want to discuss? Send me a note at results@theinformationtamer.com
