Data, Analytics, and Insight: What’s The Difference?
Data, analytics, and insight is kinda our thing. However, it seems like a lot of people use those words almost interchangeably. Are they the same thing? What do they mean for your business?
Data = The Information
Analytics = The Connections
Insights = The Actions
Data is pure information. For example, data about your current customers (first party data) is information such as average age, gender, location, or occupation. Analytics are the patterns that connect those things.
That would mean that data is knowing that you sent over 20,000 emails in June 2021. Analytics are knowing that your average open rate is 22.8% and your click through rate is 0.09%. The analytics show you a clearer image of the data.
I heard a really great illustration about this recently. Thinking about data and analytics can be compared to looking at an impression painting (like this one: The Cliff of Aval Etretat by Claude Monet.) Up close, all you see are the brush strokes and colors. That’s like looking at raw data. You can see what it is made off. But if you back up a few feet and look at the painting, you can see what the image actually is. Similarly, looking at analytics gives a more complete view of your data.
What’s the advantage of Insight?
Insight is the action connected to the analytics. Taking the example of 20,000 emails, insight would taking the knowledge that you have a great open rate but a terrible CTR and doing something about it. Applying insight means changing your call to actions or link to generate a better click through rate.
What’s another way to apply insights?
Building a Buyer Persona
What is a buyer persona? In the simplest terms, a buyer persona is exemplification of all of your customers. The most common way to do this is to create a fictional person that has the most common demographics and interests of your customers. Basically, you take data, analyize it, and then use insight to act.
Ask yourself: What are your customers common denominators? (Data) What do they want? (Analytics) What are their pain points? (Analytics) Once you have this information, it can be combined into a person you can picture makes it easier to connect with the crowd. (Insights)
Jim Edwards from Funnel Scripts explains buyer personas as the main character in the story of your company’s customer journey. Although your company already has its own personality, (or brand) in order to success the narrative you’re telling haws to focus on what the customer wants and needs. You are there to help them get to where they want to go. Jim Edwards example buyer persona was for a weight loss company. Their buyer persona is a middle-aged unicorn named Fred who needs to lose weight if he wants to be successful at his quests. Fred is the main character in the story. The weight-loss company is there to help him.
What data do you need to create a buyer persona?
Like any good main character, your buyer persona needs to be well rounded. It needs to have a purpose, interests, goals, and struggles. It’s especially important to know what motivates them so you can help them.
Here’s some common buyer persona attributes.
- What are their basic demographics?
What gender to they identify as? How old are they? Where do they live? What is their relationship status? Are they educated?
- What do they do for work?
What’s their job title and description? But more than that, are they a decision maker? What do they influence at work?
- What are their interests?
Do they have hobbies or interests? What do they do in their free time? Are they part of a community?
- What do they want and why can’t they have?
This a big thing for figuring out what you can do to help them! What are their goals and dreams? What are their pain points? Like, what keeps them up at night?
- Why wouldn’t they buy from you?
What’s stopping them from buying from you? What objections may they have?
- What ways would they prefer to interact with you?
Do they use social media? Do like a particular social media? Is a phone call the best way to reach them?