Data-driven decision making has emerged as a powerful strategy in today’s digital culture. But does it actually improve business performance? As just one example, a study by McKinsey reveals that data-driven organizations are 23 times more likely to acquire customers, 6 times as likely to retain customers, and 19 times more likely to be profitable.
To go beyond that, businesses that leverage big data see an 8 percent increase in profit and a 10 percent reduction in cost according to BARC research. These companies also reported better strategic decisions, improved control of operational processes, and a deeper understanding of their customers. Yet despite the clear advantages, only 24% of companies describe themselves as data driven.
Does this mean that you should not use never use intuition when making decisions. Not at all. But since your gut instincts are influenced by what you know and what you have experienced, using data and new information can only improve the chances that your decisions will succeed.
As the digital landscape continues to evolve, companies that effectively utilize data to inform their decisions will be better positioned to outperform their competition and achieve sustainable growth.
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