Six Principles of Psychology which Affect Analytics and Decision
making
The success of analytics within a business is not just about
numbers, technology and processes, it's about how we integrate between analysts
and marketers.
This was the thrust of a fascinating presentation by Suniel
Curtis, Head of Web Analytics and Insight at Hays, formerly of lastminute.com.
1.
Create a story, don't just use numbers
While numbers can be very convincing, this isn't always
enough to convince stakeholders to take action.
Instead, you need to
be able to use the numbers to tell a story and bring the data to life.
2.
Provide just enough data
Often, meetings don't produce enough decisions to take
action, but instead can often end with requests for more data.
People
will delay decisions if more data can be found, even if it's irrelevant.
Suniel referenced Princeton research paper, On Pursuit and
Misuse of Useless Information. Here's a very apposite quote from the paper:
Decision makers often pursue non instrumental
information--information that appears relevant but, if simply available, would
have no impact on choice. Once they pursue such information, people then use it
to make their decision.
Consequently, the pursuit of information that would have had
no impact on choice leads people to make choices they would not otherwise have
made.
The lesson here? Present
the minimum amount of data required to make a decision.
To illustrate this point, he used an example from Hays. The
company advises job applicants to update and maintain their social profiles to
improve their employability.
However, many tend to ignore this advice but one key stat
changed this: 90% of hiring
professionals view social profiles.
That's all the data that was required.
3. Use
the voice of the customer
Data can do a lot, but using customer feedback can be more
powerful in convincing stakeholders to take action.
Suniel used an example from a previous role at Hilton,
covered here in Marketing Week. He had identified an issue where customers were
encountering unintended error messages during the booking process, causing them
to abandon their purchases.
Suniel calculated that this
error could cost up to $3bn per year in lost bookings.
However, identifying the issue wasn't the end of it. People
higher in the business needed to be convinced, with some dismissing the
problem, saying that customers would just call instead.
By looking through customer feedback and providing examples
of angry customers who had abandoned their bookings, these stakeholders were
persuaded to act.
4.
Don't push a choice, push a test
Suniel used the example of the 'ugly baby problem'. In other
words, if analysts go to marketers or developers with problems, they are
insulting their 'babies'.
A developer or marketer may have ploughed months of time and
effort into a campaign or website, and doesn't want to hear that this effort
wasn't worth it.
The recommendation to give choices, not absolute
recommendations. This can make it easier
for people to accept the data, as they are brought into the process.
5.
Co-locate with stakeholders
Rather than having analysts grouped together on same bank of
desk, apart from everyone else, integrate them with the parts of business they
are servicing.
Then, the analysts are in with the decision makers and
joining their meetings. This enables people to form ideas together, based on
the data.
Business should be cautious here, as analysts do often like
to work together.
Therefore a balance needs to be struck, perhaps they could
spend one or two days a week working together, or congregate for regular
meetings.
6.
Change tack when you hit resistance
Here, Suniel quoted Hans Rosling, a Swedish doctor, academic
and speaker:
When I have an argument with someone, even with someone I am
not very close with, I can't sleep at night thinking about it. It's terrible.
But I still manage speak out frankly because I have also
been gifted with the ability to read people. I can sense when they start to get
irritated with me, and then, I shift.
The point here is that analysts need to understand that they
can create strong emotions among stakeholders when they present reports and
recommendations.
Sometimes a change of approach is needed. As in the Hilton
example mentioned earlier, if stats alone aren't working, bring in things like
customer feedback.
The
conclusion? Success with analytics is not all about numbers, technology, data
and processes. It's about how we integrate between analysts and marketers.
Post a Comment