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If you run a business, you probably understand the importance of data. Almost every company uses data to make decisions. Some companies focus heavily on the quantitative side, while others devote their energies to collecting and analyzing qualitative data. However, we can all agree that data can transform your business into a results-driven, successful brand.
Unfortunately, with all of the conversations about the meaning of data, many brands don't make sure they're getting the full picture. It is an all too common mistake to only focus on half the data. Usually this means focusing on either the quantitative or the qualitative side.
If you want growth, profit, and increased brand awareness, you need to look at both sides of data analysis. Data is a great resource for driving results, but your results will be limited unless you look at multiple angles.
Related: Why Your Startup Needs Data Science
1. Quantitative data is a powerful tool
Big data and quantitative data analysis are among the most discussed marketing tools of the modern business age. A number of extremely successful companies have built their business on the numbers, calculations, and algorithms of quantitative data analysis.
In fact, quantitative data analysis is so common that it's likely infrequent that you will interact with a brand that isn't using it. One of the companies that has used this type of data analytics for massive success is Netflix.
Netflix gathers vast amounts of information from hundreds of millions of subscribers. The company collects data about the time and date a user watches shows, the types of shows a user watches, and the time spent watching them. This data is used to generate specific recommendations for users as well as customized ads and previews for new content.
This quantitative data analysis led Netflix to a staggering 93 percent customer retention rate. The data-driven customer recommendation system accounts for over 80 percent of the content streamed. Valued at over $ 100 billion, Netflix is one of the highest rated brands in the world. Numbers like this are only made possible by quantitative data.
Quantitative data opens up great opportunities for your company. Tools like regression analysis, simulations, and hypothesis testing show you patterns that you might not otherwise have seen. You can use this information to identify areas in which your business can function better.
Mathematical modeling helps you make decisions more confidently because the numbers can indicate the likelihood of a range of possible outcomes. There is no reason to rely solely on your business intuition these days. Every successful brand should use quantitative data to compete in today's market.
2. Qualitative data goes beyond what quantitative data can do
While quantitative data analysis is trending right now, just focusing on it and forgetting about qualitative data is a huge mistake. Your customers are people and numbers can't tell you everything about people.
Sisense, Dana Liberty, of data analytics firm Sisense said, "With data coming from a growing number of sources, quantitative data can only make up 20 percent of the data available to most organizations. If you focus solely on quantitative data, you miss one Lots of valuable information, which can distort your insights and decisions. You need a solution that can access and analyze the other 80 percent. "
It is important not to ignore these other data sources just because they are not in the form of numbers. Qualitative data provide important insights into the attitudes of customers towards your products and your brand. This information is critical to understanding the most effective ways to reach people and be successful with your business.
Qualitative data analysis includes techniques such as narrative analysis, surveys, interviews, and user feedback. These tools allow you to understand how your brand is perceived not only by customers, but also by stakeholders and the general public who might be potential customers.
Related Topics: Why Data Analytics Can Increase Your Company's Revenue
3. Don't underestimate the possibilities of getting the most out of data
If you want results in your business, whether or not you get the most from the data is important. The combined power of quantitative and qualitative data has the power to produce results that few other things can.
The Lego brand understands the potential of combining quantitative and qualitative data. While Lego has been a successful brand since the beginning of the 20th century, the company became aware of untapped market opportunities in 2008 by researching global data showing that around 90 percent of Lego products were sold to boys.
After looking at these numbers, Lego conducted qualitative research into the interaction of girls with Lego products for four years. This research involved thousands of focus groups, observations, and interviews. After this qualitative study, Lego used the information to create new product lines and sales increased 25 percent.
If you want to see successes like Lego has achieved with their increase in sales, ask yourself if there is any need for further data analysis in your company. Is the focus too much on numbers or too much on non-numeric data? After you have asked these questions and implemented a number of tools and techniques for data analysis, you are ready to see the results you want.