The power of analytics is undeniable in the modern business landscape. Businesses of all sizes can benefit from understanding the data they collect and the insights that analytics can reveal. For those just getting started with analytics, understanding the basics can be overwhelming. To take the guesswork out of understanding your analytics report, here's a beginner's guide on how to decipher your analytics report.
- Know What You're Looking For
Before you dive in, it’s important to understand your goals and objectives. What do you hope to learn from your analytics report? What metrics should you be focused on to meet your objectives? Are there any industry benchmarks you'd like to compare against? Knowing the context and expectations going in can help make the most of your analytics report.
- Check For Data Quality
The success of any analytics report depends on the accuracy and quality of the data it’s based on. Check your data for any discrepancies or errors that could end up skewing your results. This would be a good time to also confirm that you have enough data to generate insights.
- Identify Key Performance Indicators (KPIs)
By understanding the common KPIs in your industry, you can start extracting insights from the data in your report. KPIs are the key metrics that tell the story of how well your business is performing. Pay close attention to the KPIs that have the most impact on your business.
- Analyze Your Results
Now that you know what you’re looking for and you have validated your data, it’s time to dig into the results. Look for patterns in your data and trends of performance by evaluating each KPI. Understand the drivers of performance and any potential opportunities that may arise from the results. Make sure to analyze the data in the context of your competitors to better understand how you measure up.
- Communicate Your Results
Once you've analyzed your data, it’s time to share your findings. Presenting the data in an approachable, visual format can help to effectively communicate the results. You can also create summaries, stories, or presentations to provide a full picture of the insights. Keep your audience in mind, and make sure to communicate the results in a way that is easy to understand and actionable.
Although analytics reports can be complex and intimidating, this beginner’s guide can help you make sense of the data and get the most out of your analytics report. Once you have a handle on the basics, you'll be well on your way to using data to make better informed decisions.