On a flight the other day, I was catching up on the stack of "Newsweek" magazines that's been weighing down my computer bag for the past few weeks. I ran across an article, "Era of the Super Cruncher," that points out the book, "Super Crunchers," is trying to capitalize on the wildly successful "Freakonomics." While I haven't read "Super Crunchers," I surely will. But it got me thinking about losing intuition.
The book's premise is there's more data available and its cost continues to decline. More decisions are being driven by data instead of relying on human intuition.
Looking at the Web, we see this constantly. Think of all the changes Omniture and WebTrends have made to their products with each new release. They offer more data, views, and the like, but the software tools' cost doesn't skyrocket. Surveys are becoming easier to run for less money. You get back-end system data based on your leads, transactions, and so forth and competitive insight. And you can now collect data that show the impact of social networks on your brand.
One of the best examples of increased availability of data might be the information produced by Google Analytics and Google Website Optimizer, which are free to use. Will they provide everything a top-tier analytics tool offers or a testing tool like Offermatica, Optimost, or Memetrics? No, but for many companies it isn't a bad place to start.
Citing "Super Crunchers," the "Newsweek" article points out two great examples of how intuition is losing ground to data:
With Web data, we often see initial pushback from designers or people leading the charge on brand. They don't want to be told how to do things; they rely heavily on their intuition and experience. Is that a bad thing? In some cases, yes. But in many cases, relying on data can go too far.
Today's analytics tools will identify a problem, but they don't offer a solution. Through solid analysis based on the overall goals of your business, customers, and prospects, you can identify opportunities and try a series of actions to see which works best for which audience.
You could say you're letting the data that performs the best select the winner for each segment. Though this is true, there's a tremendous amount of educated intuition -- intuition informed by solid data -- that goes into deciding what you'll specifically try and test.
As someone who's made a career of using data to make smarter decisions for our clients, I'm keenly aware of the advantages to this approach. Still, I've seen far too many individuals and companies allow data to paralyze decision making because they don't have all the data they'd like or have concerns about its quality.
There's a fine line between decisions based totally on data and those based totally on intuition. From my experience, you get the best of both worlds when you use data to better educate yourself on the challenges you face and encourage your people to take chances and try something new. The educated intuition will help you get a better outcome, always leaving the true measurement of success to your customers and prospects.
Last Week to Save on SES London Tickets!
SES London takes place February 10-13, 2014. Learn to engage customers and increase ROI by distributing your online marketing efforts across paid, owned & earned media. Join the leaders of today's digital marketing & advertising industry. Find out more ››
*Saver Rates expire this Friday, Dec 13.
As the Chief Performance Marketing Officer for POSSIBLE, Jason supports the agency's global Marketing Sciences and Media Services programs.
His primary role is to help POSSIBLE teams and clients use data to craft digital strategies that attract, convert, and retain customers - maximizing ongoing ROI across paid, earned, and owned channels. He believes that brands can better serve their customers by understanding audience behavior, and that messaging should be targeted to individual customers through the use of testing, behavioral targeting, and CRM initiatives.
Jason has written extensively about digital analytics, optimization and digital strategy, including an ongoing column at ClickZ.com. He is the co-author of "Actionable Web Analytics: Using Data to Make Smart Business Decisions," which is one of the leading texts in the field of digital analytics. His client roster includes Microsoft, Nike, Nokia, Dell, Ford, Sony, PayPal/eBay, P&G, Alcoa, Expedia, Mazda, Intel, and Motorola, and more. Jason is a frequent speaker at conferences and seminars around the world ranging from the Cannes Lions, Adobe Omniture Summits, eMetrics, SES, ad:tech, BazaarVoice, and many other WPP events.
Follow him on Twitter @JasonBurby.
December 12, 2013
1:00pm ET / 10:00am PT