Business Intelligence expert Jim Bunn joins The Ringer’s Adam Carolla to explain the difference between the performance data we collect and the data we want to keep.
Bunn shares his own performance metrics and the biggest takeaways from his research, as well as some tips for your own data management.
Data collection is the hardest part.
BNN founder and CEO Ben Zaremba recently posted a blog post outlining how he created the platform.
In it, he laid out his philosophy for the company.
Bnn’s data is collected, analyzed, and stored in data centers all over the world, but they’re all separate from each other and therefore, very different.
« I think that a lot of times we’re using data that has a big value attached to it, but it doesn’t have a good relationship with our core values, » he writes.
« So the data that we collect doesn’t tell us much about the value that our customers actually think they have, so we want it to be as transparent as possible. »
BNN’s mission is to make data that is useful to customers transparent.
« The real beauty of the platform is that it’s not just the analytics that’s important, but the customer experience, » he says.
« When people buy products and services, it’s the way they experience them.
You can’t make that happen without having a great customer experience.
The way you build that experience is to be transparent. »
Don’t underestimate the importance of visibility.
The most obvious way to understand the impact of data on customer value is to look at the big picture.
For example, a customer may buy a product, and then decide to leave a negative review after the purchase.
That could be a positive experience for the customer, but we’re not seeing it because we’re measuring the customer’s negative experience and comparing that with the positive experience.
This could be the reason why customers leave negative reviews.
Bannu suggests measuring customer satisfaction and customer retention as well, so that you can understand why customers are leaving reviews and what that means for the business.
« This is where the metrics that we are using are important, » he said.
« We can tell how good a customer experience is by looking at their ratings of their products, but there’s so much more to customer satisfaction than that. »
Use the right data.
If you’re not getting the same results that you want, then you’re probably missing something important.
For instance, you may be measuring the performance of a particular metric like engagement or revenue but not seeing the full impact of those metrics on the customer.
BnN’s data collection is driven by user engagement, but even if you’re only tracking engagement numbers, it can help you see how customer feedback affects the customer journey.
« If you’re trying to understand how the customer is engaging with the product, you’re missing out on a lot, » he explained.
« But if you understand how engagement and revenue work together, you can take those two numbers and you can see if there’s any synergies between them. »
Bunn also recommends using metrics that have a high degree of correlation to your business, such as ROI.
This allows you to better understand what customers are looking for, what products they’re purchasing, and what they’re spending their money on.
« For us, the most valuable metrics are the ROI metrics, because we want them to be telling us something about how much the business is succeeding, but also, how much it’s failing, » he continued.
« You can use those metrics to see whether there’s some growth opportunity there, but you can also use them to understand if the customer has any future problems or needs.
So we’re constantly looking at these metrics to try and find out what’s happening, so our customers are also benefiting. »
You need to be willing to experiment.
Bunny points out that, while the business analytics industry has been around for years, there are still some unknowns about how to use it effectively.
« It’s important to know how you’re going to use the data, » he points out.
« Some companies are doing things that are very different from what’s traditionally been done in the industry, and they’re experimenting with the data and finding what works and what doesn’t.
The key is that you don’t have to be an expert to find that. »
Don, don’t trust the numbers.
If the business metrics you’re using aren’t going to work out for you, you need to make sure you’re doing everything possible to ensure you’re getting the most out of the data.
« There are some metrics that you might think are great, but if you try to use them too much, they can come back negative, » he stressed.
« That’s why you want to be sure that you’re really taking the time to understand them and how they work, because you want them really to work well. »
There are lots of metrics out there, and that