How to Put Together a Data-Driven Strategy That Drives Revenue

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Table Of Contents

Data can help your business in a million ways. You can leverage it to improve your current operations and make more informed decisions about essential aspects of your company, improve operations, build more collaborative teams, create better products or services, and much more. Utilizing data and analytics is critical, especially when you want your digital transformation initiatives to succeed. 

According to a report by Mckinsey Global Institute, organizations leveraging data-driven strategies are more likely to obtain new customers than the average business. The same report revealed your company experiences higher chances of customer retention and improved profitability. 

Data-driven strategies can improve overall customer experience, making them want to stay loyal to your business. Let’s look at the steps for a successful data-driven approach and how to leverage data for proper monetization. 

How to Build a Data Strategy for Your Business

Data-driven strategies are helpful for several reasons. Among them, the most important advantages include:

  • Establishing approaches to meet your business goals
  • Creating a tentative and actionable timeline to meet milestones
  • Identifying financial benefits and implications of data activities

The only way to be successful in your strategy is to utilize it the right way. Your company must follow certain steps to ensure you don’t miss out on anything. Let’s go over what those steps are so that you can build a strong data strategy for your organization.

Create a Proposal and Earn Buy-In

Every strategy should start with a proposal. The relevant stakeholders should approve the proposal, including executives and other decision-makers before it is fully implemented in your company.

Proposal creation software is also valuable in assisting with the creation process.. After creating a proposal, earning buy-in from top organizational leaders can also strengthen your company. But this means your data strategy must highlight its benefits to your organization.

One thing your company can do is create an economic report. It contains information about your competitors and their data utilization. The report helps gain trust and build your reputation. Moreover, you can also use numerical values to back these claims up.

Buy-ins from department leads and technology partners also matter. Remember that the more people involved in your strategy, the more successful your strategy is.

However, you must also remember that earning buy-in does not happen overnight. It takes time and patience, and chances are that you’ll need to revisit your proposal and make improvements accordingly.

Build a Data Management Team and Assign Data Governance Roles

After sealing an agreement with organizational leaders and tech partners, you can establish your data management team. Remember that a well-established data management team must consist of department heads, senior-level managers, and team members knowledgeable about organizational and technological capabilities.

Your data management team should include the following team members:

Key Team Member Role or Skills
Database Administrator
  • Administrative ownership
  • Data maintenance and organization in the database
  • Knowledgeable about data access and debugging
Data Administrator
  • Data categorization, definition, and organization
  • Create and maintain logical and conceptual data models
  • Comply with the best practice of data management and governance
Data Modeler
  • Document and design data models by working with business users
  • Ensure consistency of data models
Data Architect
  • Architectural blueprint maintenance
  • Updated with the latest innovative tech solutions
  • Implement systems with IT personnel
ETL Developer
  • Data extraction and processing
  • Ensure data quality meets requirements by regularly cleaning and sorting them out.
  • Document ETL processes and data integration

Before looking for providers outside your company, it’s always best to look for the skills you need from your in-house employees.

After assembling your team, start assigning enterprise data governance roles. Determine who is responsible for specific processes, ensuring roles are well-defined to prevent confusion. Moreover, this guarantees your data management team can accomplish all necessary tasks.

Your data management team is critical to the strategy’s success because the members are responsible for the following:

  1. Allocating resources
  2. Managing issues on data strategies and organizational activities
  3. Improving policies

Identify the Types of Data You Want to Collect and Where It Will Come From

The next step after the assembly of your data management team is knowing precisely what  types of data you need and its retrieval. This should align with your business goals to ensure you’re obtaining the information you need.

For instance, businesses leveraging online marketing strategies to gain new customers should collect first-party demographic info from their websites. They can enrich their retrieved data with second or third-party data as long as it’s reliably sourced.

Generally, this step has three essential aspects:

  1. Describe the exact data type you must collect
  2. The purpose of your data
  3. How and where can you collect the data

To find and categorize data, it’s essential to invest in data discovery and data catalog tools. These tools help find internal data that is distributed across various systems and applications and assign tags and metadata to that data so that it can be easily found in the future.

To ensure that everyone in your organization can access data on demand, it’s also essential to implement a data marketplace solution. Revelate utilizes automations to streamline the data fulfillment process so you don’t have to involve your IT team. Instead, an employee can request a dataset directly from the marketplace, and automations take over to ensure that the appropriate checks and balances are performed for data governance and security before the dataset is extracted, prepared, and released to the employee.

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Revelate provides a suite of capabilities for data sharing and data commercialization for our customers to fully realize the value of their data. Harness the power of your data today!

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Set Goals for Data Collection and Distribution

Goals are valuable, especially when you want to keep track of your strategy’s performance. You must have well-established goals and objectives to facilitate more efficient data collection and distribution.

Setting goals can also help ensure high-quality data collection. Your goals can establish organization and consistency in your data-driven strategy, allowing better utilization.

Data distribution goals can also help you identify the value behind the data obtained. You can represent data values and name elements to preserve their collection and distribution.

Create a Data Strategy Roadmap

 data-strategy-roadmap

After setting goals, a data strategy roadmap should also be in place. It must outline your future plans for data organization and how you can successfully integrate it with your current business goals.

Every set goal must correspond to actionable plans that must be precise and include information about the following:

  • Who owns your business goals?
  • Which tech solution (or solutions) can help achieve the goal?
  • The cost behind reaching your objective
  • The timeframe to achieve your goal
  • What to expect after completing your business objective

Your roadmap must also include flexible plans that can easily be modified because of unexpected changes or emergencies.

Plan for Data Storage and Organization

Data storage and organization are also critical elements for a successful data-driven strategy. These aspects can dictate the quality and integrity of your data.

Data storage refers to all systems and applications that house dataBut the types of storage are often different across various organizations, consisting of multi-cloud and hybrid cloud technologies. If you want to plan successful data storage methods, you must always consider:

  1. Proper approach of organizations to data storage
  2. What data storage implies on data usage

This step also involves understanding the importance of proper data storage and organization. Remember that they can affect data identification, access, and use. Plus, they can also influence the level of difficulty when it comes to accessing and sharing data across various departments.

Earn Approval and Start Implementing Your Data Strategy

The final step is earning approval from your senior leadership before implementing your data strategy. It should be part of an overall business plan that includes all activities related to your data. You must adequately outline business goals to ensure data is aligned with them.

You must also guarantee your data strategy considers your available resources, including budgetary requirements and organizational structures. After gaining your leadership’s approval, it’s time to implement your data strategy.

You must also remember that your data strategy must still be regularly monitored even after implementation. This ensures it meets your client’s expectations, and you gain the chance to improve constantly.

How Enterprises Execute a Data-Driven Strategy

Business enterprises mainly depend on successful data-driven strategies. These approaches help them think better and make well-informed decisions for their team and clients. But a framework should also be followed to ensure the strategy’s success.

Let’s review the framework enterprises use to execute a successful data-driven strategy supporting operational improvement.

Align an IT Strategy and Budget

A proper data-driven strategy must include IT resources and budgets. In addition, without proper IT structures, your company can experience hindrances in new types of storage, data sourcing, and analysis.

Moreover, malfunctioning IT architectures can prevent siloed data’s proper integration. To avoid these mishaps, it’s imperative to have a working IT strategy that aligns with your available budget from the start.

Establish A Centralized Data Science and Analytics Team

Having a centralized data science and analytics team is also essential. This involves ensuring your group consists of the most critical roles: data engineers, data scientists, and data analysts.

The Role The Purpose
Data Engineers Building, designing, and maintaining datasets for proper data project creation
Data Scientists Create large-scale analysis by leveraging programming, advanced mathematics, and tools
Data Analysts Create direct analysis and performance reporting to track a strategy’s performance

Learn and Share Insights and Feedback

Aside from helpful metrics and indicators, other ways that you can tell the data strategy is successful is after hearing insights and feedback from your team members and stakeholders. As a business leader, you must be open to suggestions, opinions, and recommendations for the benefit of your company.

How to Leverage Data to Develop a Strategy for Monetization

A data-driven strategy also helps achieve successful monetization. In the digital world, it’s common among businesses to leverage data they have to gain revenue and profitability through effective monetization. But how and where do you start?

Transition to a Data-Driven Culture

Transitioning to becoming a data-driven company takes a long process with several key elements. One of the most important is having sufficient data. Aside from data collection, you must also ensure that the obtained information is valid and processed through reliable, high-quality collection tools.

You must also understand that a data-driven company involves significant changes to culture. It’s imperative that all team members are trained in the why and how behind data and its importance.

The transition also means your company’s management must consist of decision-makers capable of interpreting and analyzing available data. All available tools and human resources must be put in the proper places, especially during the transition period.

Develop More Reliable Revenue Streams

Developing reliable revenue streams is a major advantage of data-driven strategies for monetization. You can experience increased revenue from the following circumstances:

  • A new product: analytics, data selling, insights
  • Upselling existing customers: paying premium plans for insights or analytics about a product usage
  • Discover new business opportunities: data mining for discovering more customer segments

Better Targeted Marketing Efforts

A data-driven strategy should also serve as the foundation of your company’s marketing efforts, especially when you want to provide personalized experiences to your customers. Regardless of the industry, marketing efforts are critical to a company’s success.

Data-driven strategies can make marketing efforts more targeted by reaching the right people. You need to find clients who will check out your brand and purchase a product or a service.

Moreover, these strategies can increase the chances of acquiring repeat customers who can stay loyal to your brand. And this can be good for your online image and reputation.

A data-driven strategy should focus on creating highly-targeted campaigns, ensuring personalized and unique customer messages. You can collect data and use it to know the following about your customer:

  • Online activity
  • Lifestyle
  • Interests

And when you obtain these relevant pieces of information, it’s easier to establish a targeted marketing strategy that resonates with your client’s wants. This can make your business look more attractive, driving curiosity to peak their interests.

Data-driven marketing can also provide valuable insights about prospective customers you can then use to increase your chances of turning into loyal clients. Moreover, targeted marketing campaigns enable your company to look for weak areas in your strategy to generate ways to improve for your clients.

Identify Risks and Mitigate Impact

Leveraging company data can also help identify possible risks. You can then utilize this information to prepare for dealing with these potential risks proactively, whether it be through updated policies or procedures or by leveraging technology.

Develop Digital Ambitions to Leverage Data to Develop a Strategy Systematically

data-driven-strategy-that-drives-Revenue

Leveraging data can open up various opportunities, such as enabling your company to utilize data analytics and examine the past. The information obtained can be used to predict how your strategies will perform in the future.

Moreover, data science allows companies to prepare when certain situations and mishaps happen.

Your next question might be, ” Why do data-driven organizations perform so much better?” The answer is quite simple. Relying on data rather than gut feelings allows business leaders and stakeholders to make objective decisions based on real evidence, leading to better outcomes for the company.

Additionally, data-driven strategies can help stakeholders act faster and with better focus. These tactics allow business leaders to identify a product or a service’s ins and outs to become more precise in knowing what their customers need and want.

You must also take note of critical elements that can make or break your data-driven strategy. These elements include the following:

  1. Data Vision Statement: what is your goal with your data in establishing new business strategies?
  2. Business Cases: what is your preferred initial step?
  3. Guiding Principles: determine your data source and ways to maintain its quality
  4. Long and Short-Term Goals: are your goals within a strict time frame?
  5. Roles and Organizations: help in creating a roadmap for your data strategy

Introducing DDI (Data-Driven Innovation) for Digital Business Success

Data-driven innovation combines data and analytics for the development of new processes, products, markets, and organizational methods. These two aspects are critical in the execution and discovery of innovative solutions to achieve business models, services, and products with confirmed business values.

Data-driven innovation, or DDI, allows organizations to leverage SMART digital tools and strategies to capture the following key performance indicators:

  • Demographics
  • Real-time market
  • Engagement data
  • Industry

Designing the Intellectual Property That Will Form Its Core Business Model

Leveraging intellectual property is critical in establishing a reliable core business model. It’s important because retaining intellectual property can help keep your business ahead of your competitors. It can also provide essential revenues as it boosts your company’s performance.

Intellectual property can also introduce you to a new dimension of business goals, analytics, and operational models. It’s an essential part of your company’s branding and marketing that can help drive success and boost data traffic.

However, you must also remember that intellectual property protection is essential if you wish to maintain a competitive advantage. This can be accomplished through trademarks, copyright, trade secrets, and patent.

Developing New Information Products and Commercializing Internal Capabilities

Data-driven intelligence also allows your company to develop and leverage new information about certain products to commercialize its internal capabilities. And if you want to develop a new product from a concept, you must follow a step-by-step procedure:

  1. Ideation
  2. Research
  3. Planning
  4. Prototyping
  5. Sourcing
  6. Costing

This also allows you to discover product valuation, helping you discover the importance of your customers’ products or services. Plus, you can reap the following benefits when utilizing the New Product Development Process:

  • Ensures faster market time
  • Better determine the idea’s technical feasibility
  • Helps address what your customers need and attend to their concerns
  • Increases your chances of achieving success
  • Reduces potential of technical debt
  • Provides better feature creep management
  • Negates your opportunity cost

Creating Highly Personalized Services or Enhanced Personal Experiences for Customers

Data-driven innovation also establishes targeted services and personal experiences for your customers. This is one of the best features you can enjoy when utilizing DDI solutions. Always remember that your customers must always be your top priority. You must always utilize the best ways to address their wants and needs to make them want to return to your brand.

When you rely on customer data, you can better understand how to improve, making your products or services better. Doing this creates more opportunities to reach a wider audience and introduce your business goals.

Develop Essential Data-Driven Strategy Competencies

The competencies you need for a successful data-driven strategy are vital traits you and your team must possess for a better work environment. Generally, there are four valuable traits your company must develop to become competent and competitive in your industry. 

Data Literacy

The ability to manage, read, debate, and understand data is referred to as data literacy. It’s a primary focus for your company to ensure that employees learn and understand the importance of data to transform your company into having a positive data-driven culture. Moreover, data literacy has proven to positively impact your employees because they can do their jobs more effectively and feel more confident working with data.

Data-literate employees can also assist your customers better, especially with their data-based support inquiries.

Data Democratization

Data democratization refers to the ability of employees to gain access to and seek necessary information whenever and wherever they need to. They must be able to accomplish this using inefficient formal processes, which is critical for an effective data-driven strategy.

This is why you must ensure your company data is always available to your employees. Aside from establishing consistency and access, it also develops trust among your team members. As a business leader, you must always remember to provide the correct data to your employees as quickly as possible.

With Revelate’s data marketplace solution, you can provide self-service data access for employees while ensuring that security and data governance is maintained. The marketplace interface is easy to navigate, and customizable dataset display options help employees find what they need quickly. Once a dataset is requested, the system performs the appropriate checks and balances via automatic processes.

Unlock Your Data's Potential with Revelate

Revelate provides a suite of capabilities for data sharing and data commercialization for our customers to fully realize the value of their data. Harness the power of your data today!

Get Started

Convenient Collaboration

Your work environment must also allow your team members to take the initiative whenever they desire to. This convenient collaboration creates a better team where everyone can freely interact and pitch suggestions.

A workplace that enables employees to express their opinions freely creates an environment that better leverages strategic ideas to help the company become more competent in making effective decisions that positively impact the business.

Developing a Data Strategy to Measure The Value of Your Data

The right data strategy allows your company to measure data values. It must establish your company’s competitive advantage to improve overall decision-making and boost performance. An efficient data strategy can also help improve your revenue streams. 

If you want to have a measurable financial impact on driving value to your data, there are two benefits that you’ll want to focus on:

  • Improve operational efficiency: The last thing you want is silos in your organization. And to break this apart, you must have trusted shared data that can provide real-time visibility across your departments and vendors within your supply chain. A data driven strategy can measure how valuable your data is to the efficiency of your organization’s operations.
  • Boost productivity through automation: Automation, and data automation specifically, reduces the number of tedious work processes, providing more time to accomplish other relevant tasks. This also helps with employee productivity. A data-driven strategy can go hand-in-hand with automations to boost productivity, helping you derive value from your data.

Having these two factors in mind can be the key to helping you develop a successful data strategy based on your data’s value.

Conclusion

The power of data continues to rise today. It becomes even more valuable for businesses, allowing big companies to establish data-driven strategies to drive more customers. Always remember that an effective data-driven strategy can allow more efficient utilization of your resources while maximizing their values. 

Data-driven strategies leverage valuable data to make more informed decisions for your company’s success. They serve as your framework for identifying ways to make more targeted marketing to reach your audiences.

Your tech solutions, executive partners, and team members can greatly impact the success of your data-driven strategies. And if you want to get the most out of your data collection, contact Revelate, an all-in-one data marketplace solution for on-demand, self-service data access. Schedule a demo today to learn more.

Unlock Your Data's Potential with Revelate

Revelate provides a suite of capabilities for data sharing and data commercialization for our customers to fully realize the value of their data. Harness the power of your data today!

Get Started