Published on March 10, 2014
@KennethLim NOT ALL DATA IS CREATED EQUAL
If Big Data was useful, we would have called it Useful Data
Donald Rumsfeld: “ There are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns -- the ones we don't know we don't know. ” 7
Finding Data known knowns known unknowns unknown unknowns 8 Data Application Analysis & Testing Discovery
We analyze data…
not because we want to report it
not because we can
and certainly not because #YOLO
but because we want to improve the outcomes
We must learn how our goals are impacted by understanding the relationships within the data
Not all data is created equal
Goal Performance Process Behavior Circumstances Data Hierarchy 16
Circumstances: variables that can influence Behavior, e.g. Seasonality Performance: what you need to reach your goal, e.g. € 2M Profit Process: a key figure that impacts Performance, e.g. Profit Margin per Product Behavior: individual actions within the Process, e.g. Products Bought and Price Paid Goal Data Hierarchy 17 : what you ultimate want to achieve, e.g. 10% Financial Growth
Online Shop Example Known Knowns Known Unknowns Goal Profit Performance Revenue Costs Process Revenue per Customer Revenue per Order Revenue per Email Campaign Behavior Website Visits Products Bought Orders Made Amount Paid Discounts Applied Abandons Emails Opened Email Links Clicked Customer Online Times Circumstances Holidays Gifts Email Campaigns Birthdays Anniversaries 18
Circumstances Understanding Relationships within Data 19 Goal Performance Process Behavior Profit Revenue Emails Opened Email Links Clicked Email Campaign Amount Paid Revenue per Email Campaign Discounts Applied Abandons Customer Online Times
Email Campaign Process 20 1. Email Received 9. Email Order Revenue (in €) 4. Order Placed? 5. Abandoned? 7. Discount Applied? 8. Email Order Discount (in €) 6. Email Order Abandon (in €) 2. Email Opened 3. Email Link Clicked Yes Yes Yes No No
Measuring Revenue per Email Campaign 21 Total Email Order Revenue Total Number of Emails Sent Total Unique Email Opens Total Number of Emails Sent Total Email Order Revenue Total Email Order Revenue + Total Email Order Discounts + Total Email Order Abandons * Revenue per Email Campaign = Adjusted Revenue per Email Campaign =
But wait… there’s more!
Circumstances Improving Revenue per Email Campaign 23 Goal Performance Process Behavior Profit Revenue Emails Opened Email Links Clicked Email Campaign Amount Paid Revenue per Email Campaign Discounts Applied Abandons Customer Online Times
We can obtain data by asking
We can obtain data by taking
We can obtain data by testing
We should obtain data by asking, taking & testing
Improving Revenue per Email Campaign 28 Total Unique Email Opens Total Number of Emails Sent Total Email Order Revenue Total Email Order Revenue + Total Email Order Discounts + Total Email Order Abandons * Adjusted Revenue per Email Campaign =
An Evolving Approach to Data 1. Understand the impact of and the relationships within the data 2. Collect the data that is important 3. Analyze the outcomes 4. Optimize the approach 29
The story is never about the data itself
Final Thoughts • Always look to improve the outcome • Establish a firm understanding of the relationships within your data • Challenge the unknown • The story is never about the data itself 31
Kenneth Lim designxdata.com email@example.com @kennethlim
Not all data is created equal. Some of the most profitable decisions are made by combining data in novel ways, but creative combinations of data can also ...
Not All Data Is Created Equal Balancing Risk and Reward in a Data-Driven Economy
Automated Storage Tiering: 5 Reasons You Should Consider It Organizations of all sizes implement virtualization to gain efficiencies for both IT and the ...
Is versatility is the new #1 requirement for the storage system? Not all data is created equally. Performance, density and reliability are just the ...
Did you know? A camera without a lens is like a car without important car stuff. Learn more about lenses in Vimeo Video School.
Not All Data Parties Are Created Equal Not All Data Parties Are Created Equal In this overcrowded marketplace, reaching your prospects is more difficult ...
Not All Data is Created Equal Executive Summary: Enterprise storage costs are spiraling out of control. Demands for storage capacity have been ...
Today's B2B marketing teams are awash in customer information. This flood of data can produce optimal marketing results and significant ROI opportunities ...
The health care industry has become progressively more concerned with and focused on the potential of “big data,” with some going so far as to call it ...