Using metrics to inform business strategies

 

Metrics are like a neon sign showing you the right direction. Metrics or numbers can reveal potential problems, help your team clarify goals, and add credibility to arguments when explaining strategy. Here are four ways you can use data to create effective business strategies:

 

 

Metrics can act as a guide for all sorts of business decisions. If you launch a new product and the market does not respond, take it as an opportunity to either abandon your work or redefine your vision.

 

If you are engaging your customers, they will tell you what they want, and you make changes based on that information. If your data reveals that your product is a hit, congratulations! You may not need to pivot now, but pay close attention to what is changing and what is stagnant. Look for patterns to predict future market developments and stay ahead of the competition.

 

 

Metrics also allow you to measure performance, both within your company and against your competitors. Numbers make goal-setting simple because they are objective. Determine the realistic changes you want to see, and work backward from your end goals to identify the milestones you need to achieve.

 

 

When you have concrete data in hand, you can translate it into fact-based discussion points. This gives you credibility when meeting board members or other stakeholders and helps facilitate decision-making. Amazon is famous for using metrics to make decisions that please customers and increase revenue.

 

The company has 500 measurable goals — nearly 80% of which relate to customer objectives. Meetings in which “the best number wins” can be grueling and involve challenges from colleagues. To turn numbers into strategies, just make sure you are focusing on metrics that matter.

 

 

After using data in major decisions, make sure you clearly communicate the changes to the people whose efforts are reflected in the numbers. Avoid overwhelming everyone with information by prioritizing a few important metrics.

 

This will ease communication and help you clarify your big goals. Metrics can be useless or your greatest assets when creating a business strategy. Big decisions are stressful, but if you do research and let the numbers tell the story, you can clear the fog and move with confidence.