History is rife with stories that sing the virtues of trusting one’s gut. Famous entrepernuers from Steve Jobs and Richard Branson to Anna Wintour and Oprah Winfrey have all mentioned the role intuition has played in their decision-making processes. But while there’s little question that instinct can encourage magnificent discovery, the value of data-driven decision making should never be overlooked.
According to Daniel Kahneman, who was awarded the Nobel Prize in economic sciences for his work on “human judgment and decision-making,” people basically make either quick, intuitive decisions or slow, rational ones, choosing one approach over the other depending on the circumstances and resources available to them at any given time. In his research, Kahneman validates the success of fast thinking in certain situations, but posits that intentional critical analysis yields far better results. (i.e., more effective decisions) overall.
It’s not unlike our confidence in solid market research here at Communications for Research. Just as Kahneman, we believe that better decisions come from reliable information. Good data provides a foundation for success and acts as insurance, supporting insight not only during the course of normal business, but especially when disruptions are imminent or competition or manufacturing issues or even a global health crisis such as COVID-19 threaten productivity and ROI. Having information on hand that quantifies and qualifies facts and figures, as well as thoughts and beliefs, can help a company more quickly recognize and address obstacles, thus allowing it to survive and even thrive when others can’t and often don’t.
Here’s why data-driven decision making is more important than ever:
A lot of business strategies come down to money. The choice to implement data-driven decision making is really no different. Trial and error is often expensive since — as implied — it frequently demands that you devise and try multiple plans of attack in order to arrive at a good decision. Data, on the other hand, improves operational efficiency, thereby saving you time and, of course, money. The result: data-driven decisions reduce costs.
With today’s technologies offering relatively cheap access to enormous amounts of information, companies have a cache of credible data at their fingertips. To rely on gut feelings or instinct when real-time facts and figures are there for the taking puts a company at a distinct disadvantage. With most other businesses enjoying the fruits of Big Data analytics, to not harvest even low-hanging data yields is to risk the competition overtaking you in the near(er!) future.
The Customer Experience
Research continues to confirm the importance of the customer experience. By the end of this year, many believe it will replace both product and price as a brand’s key differentiator. To keep in touch with people, companies can’t guess what consumers want, they have to ask them and use the information to respond. For this reason alone, data-driven decision making is critical if a company wants to outperform and outlast the competition.
Want to Learn More?
Data-driven decision making stems from good market research. If you’d like more information about how you can harness meaningful insight that benefits your customers, employees and your ROI, please contact us. We have over 20 years experience crafting research projects that yield actionable and profitable results.