All of our digital behavior is recorded. But for many companies, this data sits in pretty dashboards and or even worse, databases, never to be used. The good news is that instead of letting your data degrade, you can use it for your business’ growth strategy to make better decisions.
What is Data-Driven Decision-Making?
Instead of going with the decision you think is best, data-driven decision-making is a strategy that uses data to inform business decisions. In data-driven decision-making, you group together historical information to analyze trends and make decisions for the future based on what’s worked in the past – rather than make decisions based on gut feelings, opinion or even experience.
“Best-in-class” companies position data at the core of every decision they make.
For example, imagine you want to roll out a new line of services for your MSP. Instead of starting from scratch and hoping a new line of service works, take a look at your previous lines of service. What’s profitable? Replicate it. Don’t offer more of something that didn’t work.
Put simply, do more of what worked and less of what may or may not work – all based on the data you have collected to make better business decisions.
Research backs this up model, too.
Businesses leveraging their data experienced a profit increase of 8–10%, and a 10% reduction in overall cost.
If you’re still not convinced, consider this:
While 91% of companies say that data-driven decision-making is important to the growth of their business, only 57% of companies said that they base their business decisions on their data.