The Interrelationship of Data, Analytics, and Insights
Like goals, strategy, and tactics, where people confuse the terms and use them interchangeably, many do not understand fully the exact definitions and interdependency of data, analytics, and insights. This not only causes confusion, but also a lot of redundancy. What we need is an easy way to explain each term that others can relate to and remember.
Helping Others Understand the Terms and Their Connection
Data and analytics build off each other to deliver deep understanding and insights, into customers’ attitudes, behaviors and preferences. Insights uncover actions we can take engage customers and drive revenue.
What Is Data?
Data is the information we collect from customer interactions with our brand — demographic, behavior, attitudes, and activity. And, today, we have more data available to us than ever before — in the last two years more data has been generated than in our entire history!
Despite this overwhelming multitude of data, it’s extremely difficult to make any sense of pure data points as data points in and of themselves do not paint a picture any of us can understand.
What are Analytics?
Analytics help us discover the patterns and trends within our data.
There is treasure buried in those data points that we cannot unlock without analytics. The analytic tools dig through data to reveal the connections across data points, thus making sense of the data. Analytics provides the bird’s eye view and begins to paint a picture of our customers behavior in relation to our business.
What are Insights?
Insight is the value obtained from the understanding gained from the analytics. Insights are the power. The “ah-ha” moments. They provide us with the deep understanding required to identify the opportunities, create strategies, and campaigns to engage our customers, increase loyalty, and drive revenue.
The Power of Insights-Driven Marketing
The real value of collecting all customer data (preferably in a centralized repository) and having analytics technology and tools lies in their ability to help us uncover the rich insights. We can have all the data points we can imagine, but without the ability to ingest, digest, and organize it data to be able to pull out actionable insights, it’s all worthless.
The relationship becomes very clear for people if expressed simply —the customer provides the data, the technology provides the analytics, and people glean the insights.
To find out more about how to harness data and use analytics to uncover actionable insights, download our eBook, The Value of Context, Cross-Channel and Real-Time Capabilities: Advancing Marketing’s Productivity.
About VeraCentra: Marketers everywhere want to use data to implement more modern customer engagement strategies. But there can be many obstacles standing in the way of success. That’s where we come in. VeraCentra provides easy-access Customer Data Hubs. We represent best of breed Cross Channel Engagement Platforms (so marketers get the right fit) and offer the Marketing and Data Services that guarantee speed to value and quick win ROI from technology investments. We deliver these solutions with an unmatched wholehearted approach bringing personalized support, care, and service to every client. That’s why many of our client relationships span more than a decade.