A Measurement plan clarifies what we mean by the buzzwords “analytics”, which we often use in business meetings. This strategy is your GPS to navigate through the confusing maze of market trends and data. It helps you avoid getting lost in the whirlwind.
This plan is not about proving that you have the most advanced algorithm or the best metrics. It’s all about clarity. Yes, clarity. This one word is as refreshing as a morning cold brew. Effective measurement plans focus on the data that will propel your business strategy, rather than capturing all data.
Let’s get back to basics. Setting up a plan for measuring often begins with a goal. Vague? Vague? Imagine that your company wants to increase its online sales by 20 percent in the next three months. The measurement plan will then outline the specifics, such as what consumer behaviors online lead to a purchase or which marketing touchpoints users most often interact with prior to clicking the “buy” button. You know what the end result will be, but first you have to separate the sky from the middle shrubbery.
Integration is a key factor in the future. In the past, businesses used to hoard data like squirrels do acorns. Sales and marketing teams didn’t communicate with each other. Modern measurement plans encourage the integration of these data silos. Imagine beans leaking out of a taco. Not the most attractive sight at dinner, is it? Integrated systems also prevent data from spilling out and being lost in translation.
It can be difficult to choose the right metrics, much like picking apples from an orchard. You do not want apples that are beautiful but have no taste. Similarly, you don’t want variables that show performance and motivate action. Metrics such as customer acquisition costs, customer lifetime values, and engagement rates are often chosen because they have a direct link to profitability and growth. These aren’t just numbers. They’re the whispers of the market telling you whether you’re heading in the right direction.
The next step is to analyze the data. This is where businesses often struggle with analysis paralysis. A common mistake is to have too much data but not enough insight. A sound measurement plan, however, emphasizes actionable insight. Consider this example: If your data analysis shows that eight of ten customers left a website redesign before completing a purchase, then something in the new design may have upset them. This is a gold mine, far better than knowing the demographics of ten different visitors.
This is the step where you actually integrate these insights into your business strategy. This is the step that gives life to your numbers. If, for example, your analysis reveals that the majority of traffic to your website in the evening is from people aged between 25 and 35 who are likely procrastinating, you might want to adjust your ad scheduling accordingly. Your insights can transform a stagnant pool of data into an ever-flowing stream of strategy.
A measurement plan should not be a one-time thing. It is a constant. Businesses change, the market changes, and what was successful last year may not be relevant today. It is therefore more important to revisit your measurement plan on a regular basis than not. Imagine replacing your old spices regularly in your kitchen. You wouldn’t like your food to taste like Thanksgiving last year, would you?!