Data-Driven Decision-Making: Implement it Now
Data-driven decision-making is something many entrepreneurs struggle with. Many of us aren’t adequately tracking and analyzing data. But If Shark Tank has taught us anything, it’s that you need to know your numbers. In this episode of Just the Tips, Dean and I discuss tracking the steps in your process, analyzing data, and taking action steps to solve problems. Don’t miss this solution-packed episode!
Outline of This Episode
- [2:15] Pugging holes in your sales process
- [5:45] Dean’s experience tracking data
- [11:30] Advertising to strangers is a different game
- [14:00] Where is the customer finding you in their life cycle?
- [16:20] James framework for data-driven decision making
- [24:40] Tracking data over time becomes more significant
- [28:05] Steps to take from here
- [34:35] Don’t make it overcomplicated
Why do you need to start tracking?
Dean has operated for the last ten years simply on word-of-mouth and referrals for his business. Recently, he started spending time learning the ins and outs of Facebook advertising. He began spending 5 figures a month in ad budget and it has been a profitable move. So for the last 3 months, he’s been tracking whatever he can in the sales process: impressions, clicks, items added to the card, book purchases, and more.
Tracking the data for this length of time allowed him to begin noticing trends.
The metric that stuck out to Dean the most in this process was that of the people that purchased his book, only 11% filled out the application to work with Dean. That 11% did so within 12 days or less of ordering his book. No one started the application process after day 12. Tracking the data allowed him to pinpoint where their system was lacking and where changes needed to be made.
You have to build a relationship to make sales
Dean learned that it takes time to build relationships with strangers. His team would reach out in the first 7-10 days after a purchase was made—but they were lacking in systems and processes for 10 days and beyond. Fostering relationships and building trust needs to be done over time.
You can’t expect to convert sales well when a customer knows nothing about your brand.
He decided to focus on the 89% of people who didn’t show interest in his program by continuing to market, advertise, and follow-up with them. You have to build a bridge. Dean and I talk about the different factors that affect the process, so keep listening.
My framework for data-driven decision-making
I love creating and building out frameworks. It helps me make sense of the world in a meaningful and analytical way. I developed a pyramid for making decisions that helps you take actionable steps to optimize your business.
- The base of the pyramid is data. Put a tracking mechanism in place to track data that can put it into graphs, show trends, etc.
- Take that information in the form of graphs or reports and arrange it in a way that you can interpret the data.
- Take the data and your interpretation and turn it into actionable steps.
The longer you track and the more things you track, the more will be revealed to you. You’ll begin to see where your process is thriving. Perhaps you’ll narrow down even more holes that you can go in and fix. But you’d never have known any of it if you hadn’t simply started tracking where your money is being spent.
Where do you go from here?
This episode is packed with information and we don’t want to overwhelm you with details. If you take away anything, we want it to be what is summarized below.
- Figure out the most important things you want to start tracking. Start with the one thing that drives the most sales or is a higher-ticket purchase and follow the sales process.
- Become familiar with the numbers. Analyze the data you’ve tracked. Are the trends that you’re seeing normal? Get a clear and complete picture of what needs to be done.
- Take actionable steps to rectify gaps or mistakes.
Don’t make this more complicated than it needs to be. The goal is to work smarter, not harder. Tracking your data can be one of the easiest things you can do. It will give you a clear indicator of steps you can take to propel your business forward.
Musicfor “Just The Tips” is titled, “Happy Happy Game Show” by Kevin MacLeod (http://incompetech.com) Licensed under Creative Commons: By Attribution 3.0 License
Audio Production and Show notes by
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