Engage With Your Data:
From suggested advertisements sprinkled throughout your social media to your streaming services’ movie recommendations, your data is being collected 24-7 by a myriad of sources because it is valuable. It can predict what purchases you make, how much time you’re likely to spend at a given location, and even which route you’re likely to take to work. With so much data floating around, it is vital to be able to recognize the difference between Vanity Data and Actionable Data.
Vanity Data or Vanity Metrics, as the name suggests, is data that looks impressive, but may not provide real insight into a business’ performance. An example of this could be a running total of customers. Having a list of 3,000 customers is great… but what does that metric provide toward informing future business decisions? The answer is very little.
All business owners, franchisors, and franchisees, should be relying on Actionable Data. This is data and metrics that are measurable, consistent, accurate, and valid. This would include KPI’s that are aligned with your business goals, core values, and performance standards.
Gathering Actionable Data requires a consistent and valid collection process that is free from bias, which can then be used to inform decision making. Utilizing and maintaining a system of performance metrics provides insight into the points of strength and weakness that each unit of your franchise is encountering.
The key words here are utilizing and maintaining. With all of the responsibilities continuously heaved upon the shoulders of ZEEs and ZORs, it can be tempting to delay setting aside time to engage with your established performance metrics/data. However, tracking Actionable Data provides insight into where your business has been, where it is now, and where it is going. None of that is possible without ongoing data analysis and engagement (i.e.- setting aside time to evaluate your performance, identifying opportunities for improvement, and taking action toward those goals).
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