Data, Information & Insights - 3 steps to turn data into sales
Data - facts and statistics with no context
Data is facts and statistics with no context, collected or recorded preliminarily without being analyzed or processed. For example, the business collected data: "Nearly 5000 users log into the application every weekend". This data will have a specific meaning once it is analyzed and transformed into information.
Information - Data put in a specific context (whether valuable or not)
However, we need more than this factual information to make the right improvement decisions. To do this, we need to turn Information into Insight.
When data is put into context and linked to other data, it becomes information and helps us better understand a problem or situation, but we still need to figure out whether it is valuable. For example, from the data "Nearly 5000 users login to the app on average every weekend", when compared with the number of users who log in each day of the week and then plotted as a bar or line graph, we can have the information: The number of users logging in on weekends is significantly less than on weekdays.
Insight - The reason behind the valuable information
Continuing with the above example, we have the information "The number of users logged in on weekends is much less than on weekdays." After carefully reviewing indicators such as the number of visits to each page, frequency of visits, and time on site,... combined with user surveys, we can draw the following Insight: "Users rarely use the application on weekends because the application does not provide content or features suitable for entertainment and relaxation needs these days."
Insight synthesizes such information for decision-making, which requires deep analysis to find the reasons and causes behind the valuable information, thereby determining the appropriate improvement solution.
From Insights to Product Solution
The insights obtained above are the basis for us to offer solutions such as organizing a reward program, adding Gamification-type features,... to increase user traffic on weekends, thereby improving user experience.See more: Case-study Waitrr: Understanding user's pain point to create tangible impacts.
However, when choosing a solution besides User Experience, we should consider more aspects of Business Goal (this solution can help businesses solve business problems) and Optimal Technology (this solution is technologically optimal). It allows businesses to reduce risk: The solution solves user needs but does not generate sales or uses technology that is too complicated, costly, and time-consuming to operate or upgrade.
See more: Impactful Product - The North Star in Building Digital Product at GEEK Up
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