What is a Marketing Analytics Insight?

Executives lead companies by making decisions. The purpose of analytics is to provide insights to make these decisions more effective. However, a paper by Accenture found that about 40% of major decisions are not based on insights but instead on manager’s intuition. Generally speaking, gut feel decision makers did not value insights because the insights provided were not relevant to their decision. 

In order to provide relevant insights it is important to define what makes an insight. First, an insight in marketing must be related to consumer behavior. In marketing the consumer is king. The goal is to understand and incentivize consumer behavior to provide a win to the consumer and the firm. The next requirement is that the insight must contain new information. Without new information you are merely describing past information. 

Finally, and most importantly an insight must be actionable. The decision maker needs a lever to pull. A model that forecasts units sold described by the S&P 500 might be accurate, but it does not provide a lever for the marketer to pull to affect unit sales. These levers allow a decision maker to make good decisions that create a competitive advantage and lead to measurable ROI for the business.

Bridging the Gap Between Intuition and Data-Driven Decisions

To bridge the gap between intuition-based and data-driven decisions, organizations must not only produce insights that are consumer-related, new, and actionable but also present these insights in a manner that is comprehensible and persuasive to decision-makers accustomed to relying on their gut. This involves crafting narratives around data that resonate with executives’ experiences and align with the company’s strategic objectives. By contextualizing data in terms of real-world implications and opportunities for the business, analytics teams can make a compelling case for action that appeals to both the logical and intuitive aspects of decision-making.

Additionally, continuous education and communication are key to fostering a culture that values data-driven insights. Providing regular training sessions on the latest analytical tools and techniques, alongside forums for sharing success stories of data-backed decisions, can help demystify analytics for non-technical decision-makers and underscore the tangible benefits of leveraging insights in strategic planning.

Leveraging Technology to Enhance Insight Relevance

Advancements in technology, such as artificial intelligence (AI) and machine learning, offer new avenues for generating insights that are both highly relevant and actionable. These technologies can process vast amounts of data at unprecedented speeds, identifying patterns and correlations that might elude human analysts. For example, predictive analytics can anticipate changes in consumer behavior, market dynamics, or operational efficiencies, providing executives with foresight and the ability to act proactively rather than reactively.

Implementing such technologies, however, requires careful consideration of the organization’s data infrastructure, governance policies, and the skill sets of its analytics teams. Investing in these areas is essential for businesses aiming to enhance their decision-making processes with advanced analytics capabilities.

Conclusion

The journey from intuition-led to insight-driven decision-making is both challenging and rewarding. By ensuring that insights are relevant, insightful, and actionable, and by embracing the latest technologies, organizations can significantly enhance their strategic agility and competitive edge. Remember, the ultimate goal is not to replace intuition but to augment it with data-driven insights, creating a holistic approach to decision-making that leverages the best of both worlds.

Three important things for an insight to have

Here is a handy list to keep in mind when you are determining what is a marketing analytics insight:

• Consumer Related
• New Information
• Actionable Insights