Actionable insights are more than just data points or trends; they are meaningful observations that drive decision-making and strategic planning for marketers.
But producing actionable insights is often easier said than done. Forrester reports that 74% of firms surveyed say they want to be data-driven in their decision-making, but only 29% are successful at connecting analysis to action.
Transforming raw data into clear, concise, and impactful recommendations can help your brand create targeted marketing campaigns, enhance customer engagement, and ultimately drive growth and sales.
Defining Actionable Insights
When you’re developing actionable insights, think of the process as a pyramid with your end goal at the top. From bottom to top, this pyramid involves:
Data: The pyramid’s base is data — the raw and unprocessed facts that are usually in the form of numbers and text. It exists primarily in computer-friendly formats and mostly lives in databases and spreadsheets.
Information: The next level is information, which is prepared data that has been processed, aggregated, and organized into a more human-friendly format to provide more context. Information is often delivered in the form of data visualizations, reports, and dashboards.
Insights: Next is insights, which are created by analyzing information and drawing conclusions. Both data and information set the stage for the discovery of insights that can then influence decisions and drive change. Insights tell you not what, but why. They help explain what is really going on.
Actionable insights: They sit at the apex of the data pyramid. More than just data, they are meaningful observations from data analysis that prompt specific, measurable, and relevant actions. An insight that drives action is typically more valuable than one that simply answers a question. Actionable insights have several key attributes that help them stand out:
Alignment – They are closely tied to business goals and strategic initiatives.
Context – They offer ample background to appreciate why they are important or unique and thus should be acted upon.
Relevance – They are delivered to the right person at the right time in the right setting.
Specificity – They provide specific, clear, and complete details to adequately explain why something occurred, which can inform action or further probing.
Tips for Generating and Communicating Actionable Insights
Identifying the four key attributes listed above will help you differentiate between simple information and actionable insights. Here are some additional steps that will help you generate and communicate actionable insights that can deliver the most for your brand.
Tip 1: Make sure you are using quality data.
Like the common saying “garbage in, garbage out,” the quality of your insights is directly linked to the quality of the data that is collected. Be sure to triple-check the accuracy of your data before generating insights.
Tip 2: Combine data sources.
Using diverse and reliable data sources helps enrich your insights. For example, if an e-commerce site analyzes user behavior, combining those website analytics with customer feedback surveys provides a more comprehensive view.
Tip 3: Segment your data.
This provides a nuanced view, revealing patterns that might be obscured in aggregated data. For example, analyzing customer demographics or firmographics alongside purchase behavior can uncover specific product preferences among different segments. Ensure data privacy by anonymizing personally identifiable information (PII) and limiting access to sensitive information.
Tip 4: Use statistical tools and methods.
Employing statistical tools and methodologies will help you identify trends and patterns, allowing you to distinguish between short-term fluctuations and long-term trends to make informed decisions. Be sure to remember key statistical analysis concepts, such as correlation vs. causation or statistical significance.
Tip 5: Customize with clarity and focus.
Customize your insights for the various stakeholders to have more impact. Show — don’t just tell — by using visual aids. Focus on the most impactful findings to avoid overwhelming your audience. What are the most important things to know that can be acted upon now?
Tip 6: Explain the impact.
Tie your actionable insights back to your business goals. Put a value on the opportunity, whether that’s through a projected increase in revenue, more site visits, or lead growth. Help the audience understand what they can gain by acting.
Making Your Insights More Valuable
Data is only useful if you put it to work for you — and gathering information is only the first step. Insights tell you not what, but why. They help explain what is really going on. Mastering the art of crafting actionable insights can help you turn information into a powerful tool for success. Ready to get started? Contact us today for help putting your data to work in creating valuable insights.
By Two Rivers Marketing
By Minda Kuckuck