No matter where you are with your business, it is driven by your decisions. You may already know this, but what exactly is it that gives you the urge to turn right, and not left – or to take a few steps back instead of going further at any cost? Is it just a gut feeling or are your decisions powered by more measurable pieces of information?
Well, in order to not fail with your digital product development, your decisions should always be based on the latter. Only measurable information can you steer your business in the right – and by “right” I mean profitable – direction. It will give you no room no room for making vague assumptions that can lead you astray.
Data-driven decision making - why does it matter?
In order to make sure your digital product development is on the path to success, you need to have a rock-solid basis for checking the current condition of your product. And taking a data-first approach is essential to staying well-informed, so that you can make accurate decisions.
Edwards Deming (an American professor and management consultant) was right. Every decision or approach has to be backed by data in order to...
...check what works and what doesn’t Do you know for sure what kinds of content or functionalities resonate best with your target group and drive the highest number of conversions? Don’t guess. A proper set of data will help you identify this, and you may be surprised by the results. Similarly, you’ll also be able to realise what doesn’t work at all, and avoid any costly maintenance and further development of unnecessary features.
...act faster and be more efficient Data allows you to reducecosts by optimising your processes and allowing you to act faster. How? Well, as Peter Drucker, the management expert, once wrote: “What gets measured, gets managed”. You don’t have to waste your precious time wondering what the best course of action may be. A set of data indicators can guide you through any decision-making and planning processes. As a result, overall management becomes easier, and goes more swiftly and more effectively.
...equip yourself with forecasting superpowers Through data analytics, you’re not only able to give your clients what they want, but sometimes even predict customer behaviour and needs. You can also be the first to discover burgeoning trends in your industry. This will give you an opportunity to start working on new features and functionalities for your product, or even develop new products or services, opening new streams of revenue. You will also stay ahead of your competition.
So, if you don’t have any analytical tool installed yet, it might be something worth considering. But… which tools are we talking about, exactly?
Numbers and data flows - one solution to rule them all
There are a number of different all-in-one website analytics tools, with Google Analytics at the helm. Hotjar and Piwik are also pretty popular and highly valued by users. And it wouldn’t be an overstatement to say that they are a contemporary equivalent of goldmines in digital product development.
Besides these tools, don’t forget to use the analytical features offered by any comprehensive solutions you’ve already implemented and have been using on a daily basis. For example, Shopify has a nicely designed analytical panel, and Facebook allows you to track user behaviour regarding the campaigns you’re running.
The analytical information you get from these tools often makes it possible to detect performance bottlenecks, find the features that do not matter (yet trigger development costs) and learn which fields are worth investing in.
But... even when you have installed the tools that are adequate to your needs, you may still struggle with analysing thedata they produce.
First and foremost, you have to cut throughthe massive informational noise out there, where pieces of data are flowing back and forth in real time. You need to identify which figures could be significant, separate them from the rest, and use them as a beacon for product development. As certain paths can be more important than others, setting up and optimising your funnels is the key to success.
Not all businesses are capable of doing this. Some organisations also struggle with analysing and benchmarking their data from multiple analytical systems. This is a complex and difficult task, and more often than not, there are no in-house professionals who specialise in this.
However, there are ways to deal with this situation.
Data is gold and analytics is platinum, but a helping hand is key
In some cases, not everything can be done internally from within a single company. Sometimes, it is wise to accept some assistance from an outside source. Having a strong partner who not only understands the data, but is able to optimise data collection and drive a product towards reasonable development can be a game-changer.
So, if you need a helping hand and just some basic – or complete – guidance through data analytics, we are always ready to help you make the most out of it! Contact us and check other UX design services. Let us help you steer your business in the right direction and get on the path to present and future success.