As a digital online marketer or data analyst, you may need to prepare reports for different purposes: traffic performance, marketing campaign evaluation, A/B testing and countless reasons.
There is an important concept in data analysis you always need to keep in mind:
Do your analysis brings business value higher than the cost involved?
As a data analyst, there are many opportunities we need to perform analysis or read other analysis other clients perform. Frequently many analysts will perform user demographic segmentation report, such as example below:
These graphs are frequently shown in many reports from agency or consultant. Usually the graphs are in a very colourful and attractive way, I was once fascinated by such professional look graphs and think this is how we should perform data analysis.
With a closer look, however, it can only let you “feel like the situation has been clear”. I have once sent these kinds reports to senior management or clients, the response was usually “okay…” or “Alright, I see”.
It is frustrating to get such response as it may take you plenty of time in preparing and formatting these data.
What have been missing from these data analysis?
If you don’t want to get a boring face from your boss or client, you need to provide more than the “okay” graph. Here are 3 simple questions your analysis should answer:
Question 1: Which factors can increase revenue?
Question 2: What can be done to change the factors?
Question 3: Is the revenue of changing the factors higher than cost?
If your analysis can answer these questions, actionable items will easily been formed with clear objectives. Else, it is meaningless to perform a data analysis.
Frequently seen graph examples
You must have seen some marketing analysis based on brand name awareness or how people see the brand.
These graphs show that most the users like your company. Can the above graph answer the 3 questions? Not even one single question as it does not include any revenue related analysis. The focus should be whether people who love your brand spend more money, as some businesses are very successful even nobody like the brand.
Therefore, either you are the one who perform analysis or you get the report from others. This may probably a waste of time and effort if the report cannot answer these 3 questions.