Experiencing Byte Paralysis? You Aren't Alone. How To Navigate Data Ambiguity.

"No one is getting fired if they listen to the data guy, but... we are missing so many opportunities." - this exasperated declaration, born from a client's frustration, encapsulates a critical tension in today's data-centric operating environment, and we're here to talk about it.

There is no argument from us that data reigns supreme. It is critical to company's success. As Andrew Ng, a leading AI researcher, states, "Data is the new electricity".

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As companies scramble to catch-up and capture every byte of data they believe they might need, many are finding themselves at a classic crossroads: innovate and move forward 'imperfectly' now or wait for an indeterminate amount of time until the 'perfect' data processes are in place.

When we explored further with our client their exhasperated comment came originated from the tension that getting things done (they used a word starting with 's' instead of 'things' but we like to keep our insights rated PG), and being tasked with moving fast and being agile, they keep finding themselves bogged down by data teams.

They went on to say that the data-teams seems extremely focused on collecting every possible piece of data without a clear reason or purpose, and without being able to quantify why they were collecting it, or how the information might be used in the future. Our client also expressed frustration at being given an unprovable, but unwise-to-argue-against answer of 'we might need it in the future'.

When asked for our view, we gave our client four questions to think about and one piece of advice. The questions we gave our client are born from our experience guiding marketing and sales teams to navigate safely through this period of ambiguity:

• SMART Goals for data? Has the business set SMART goals for data collection? If so, has it been widely shared and is it widely understood? What does success looks like for data collection? What are the stage-gates for data collection?
• Clear data integration strategy? Is there a clear strategy for integrating new technologies and processes amid data uncertainty? Can or has the business clearly articulated how to onboard new technology, partners and processes while working through this period of data ambiguity?
• Clear data engagement terms? Does marketing understand Have marketing and data teams established clear engagement terms for integrating data from various activities? As part of the marketing briefing and tendering processes has the marketing team defined with the data team a terms of engagement they are comfortable with? Is it clear to internal and external stakeholders what data is an isn't being collected and prioritised? Do external vendors know how to 'plug in' the data created from digital marketing activity in format(s) the business can accept?
• Data Governance Framework as it relates to value and utilisation? Does the organisation have a governance framework for data collection, including defined 'expiration' dates for data relevance? What does your organisations data-collection governance framework look like? Is there a clear data hierarchy? Has the business determined data 'expiration' dates?

It is completely understandable that many business leaders fear the potential of losing even a single possible piece of data that can or could be collected. What happens, for example, if a seemingly irrelevant or unused stream of data that isn't collected could become the next gold mine for the company?

Our one piece of advice to the client was simply: data is incredibly important, railing against it is a road to nowhere, best to work with the teams and ask great questions to show you're on board and enable the business to move forward.

What do we mean by data expiration dates?

What we see in a lot of companies is a belief that hording and storing years of customer data will at some point in the future be valuable. There is no denying that it might be, but it is also worth considering what the value of data collected by customers three, four or five years ago will be in making marketing, product and sales decisions three, four or five years from now.

As examples of what we mean, let's consider two scenarios:

• How representative are the actions of customers during COVID to that of customer behaviour today?
  • How relevant is that behaviour likely to be in a further two or three years from now?
    • If it isn't being used today, and is unlikely to be used in a few years from now is it worth prioritising the collection of?
• Casting your mind forward to 2027 or even 2029, really think through how useful customer data from 2025 and earlier (pre-mass adoption of generative AI and AI agents) will be for forecasting, planning and executing marketing programs, campaigns and expected customer engagement?
  

If the data collected today is almost certainly likely to be significantly depreciated in value and utility, it is worth discussing with teams tasked with data collection how to value and prioritise the data. Does it need the Rolls Royce treatment when a Mazda might do?

Governance and evaluation processes, such as the Eisenhower Matrix, Prioritisation Matrix or Decision Matrixor can be useful for providing a hierarchy of value and importance in combination with practical and pragmatic decision making around time-decay for collected data, to understand where data generated by marketing teams and their agency partners fits.   

Don't Collect Every Shell On The Beach

Data powers our decisions and drives our strategies and there's also no denying companies are creating data that may have the potential to be valuable faster than ever. 

Walmart, for instance, handles over 1 million customer transactions every hour, feeding databases exceeding 2.5 petabytes - the equivalent of 167 times the information contained in all the books in the US Library of Congress.

The IDC also estimates that global data creation and replication will experience a 23% compound annual growth rate (CAGR) from 2020 to 2025. This explosion of data has led many businesses to invest heavily in data infrastructure and analytics.

"Without data, you're just another person with an opinion..." however "relying too much on data can lead to a lack of innovation."
- Neil Patel

Avinash Kaushik, digital marketing evangelist, emphasises the importance of data-driven decision-making, stating, "Data beats emotions." He advocates for using data to understand customer behaviour and optimise marketing campaigns.

Similarly, Neil Patel, a renowned digital marketing expert, highlights the power of data in identifying growth opportunities and improving ROI. "Without data, you're just another person with an opinion," however he also cautions businesses against believing data holds all the answers saying "Relying too much on data can lead to a lack of innovation."

Just as we don't collect every shell we see when walking on the beach, businesses that become so fixated on collecting, cleaning, and analysing every piece of data before being able to make a move in any direction risk losing sight of their strategic objectives. 

What is the cost of delaying critical decisions for 6, 9, or even 12 months due to data paralysis? The opportunity cost can be significant - competitors may seize market share, and customers may lose interest.

The Data Deluge: A Double-Edged Sword

The fear of overlooking critical data points is valid and it is why we encourage businesses to not just think about collecting data, but what they will do with the data once they have it - a year or two years from now.

Will, for example, data collected from an online marketing campaign from three years ago for a specific short-run product really inform future campaign timing decisions? If the answer is yes, then by all means hold onto that data. But if the output of the campaign is likely to simply become IP that is used internally as more of a story 'remember when we did that campaign that worked really well?' - then perhaps holding onto the bytes and bits isn't terribly necessary.

Rory Sutherland, a leading advertising executive, argues: "The human mind does not run on logic any more than a horse runs on petrol." Understanding human behaviour requires more than just data; it necessitates empathy, creativity, and an appreciation of the irrational aspects of decision-making.

Innovative marketing campaigns often arise from creative insights rather than data analysis alone. For example, Apple's "Think Different" campaign, Nike's 2012 Olympic campaign and Always' "#LikeaGirl" campaign, succeeded not because of an overwhelming amount of data, rather the right balance of data, a profound understanding of brand identity and consumer aspirations. Such campaigns demonstrate that while data can inform strategies, the spark of creativity drives true innovation.

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Getting The Balance Right

It is fair to say businesses are scrambling to catch-up to what they believe is everyone else's progress. And indeed some Australian organisations, such as Commonwealth Bank and Qantas through their Qantas Frequent Flyer rewards platform, are doing an incredible job. Both organisations have invested significant amounts of time, money and people resources to create what are arguably Australia's foremost data-collection-to-actionable-insights machines.

While both hands should be firmly on the data steering wheel, the eyes must be fixed on the bigger strategic road ahead.

Seth Godin, marketing guru and author, reminds us that "Marketing is no longer about the stuff you make, but about the stories you tell." Data can tell us what has happened, but it cannot tell us what will happen.

Creative marketing, driven by human insight and intuition, can transcend data limitations. Rory Sutherland, vice chairman of Ogilvy UK, echoes this sentiment, arguing that "The opposite of a good idea can also be a good idea." He emphasises the importance of embracing unconventional thinking and challenging conventional wisdom.

Customers increasingly crave authentic and engaging experiences. They want brands that resonate with their values and inspire them. Data can help us understand customer preferences, but it cannot create emotional connections. Creativity and storytelling are a layer on top of action. Brands that prioritise creativity and customer experience in their marketing and products will stand out in a crowded marketplace. Don't believe us? Consider TikTok.

TikTok has become a short-form video behemouth gaining users and media attention with its incredible algorithm and ability for people to go 'viral', in just a few short years. TikTok has achieved this in a crowded digital video market, where dozens of video apps had failed before, up against YouTube, Facebook and Instagram, and delivered a winning formula for short-form video despite the failure of Quibi in 2023 and Vine ten years earlier, in 2013. 

The Final Word

We champion data. We love data. We especially love it when customers generate new data, create new successful outliers that provide new north stars for what's possible. We also champion the data teams who provide clear guidance on what data they need and how they want it. And we must also remember that data is a tool, not a master. It should empower better decision-making, not hold us back.

The key is to adopt a pragmatic approach to data, and to work with data teams to understand what, when and how data collection will play a role in decision making, and in the tendering, briefing and onboarding agency partners and . We must prioritise the data that is most relevant to our strategic objectives and focus on actionable insights. We must embrace experimentation and be willing to take calculated risks. We must foster a culture of innovation that values both data and creativity.

By striking this balance, we can navigate the data-driven landscape with confidence and conviction, ensuring that we never lose sight of the bigger strategic picture.

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