Data is rubbish without insights

To add strategic value to what you want to achieve. You need something called “insights.”

Have you ever questioned what an insight truly is?

Many people misuse the definition of insight. An insight is not a fact, an obvious piece of information, or a convenient piece of data someone provides to you. Insights are not assumptions either.

So, let’s clarify what data or facts that are NOT an insight:

1. The sky is blue.

2. People tend to feed their pets twice a day.

3. Warby Parker sells glasses (both sunglasses and optical). All these are not insights.

   Not knowing how to gain insights could be the reason behind a broken or unsuccessful strategy.

What is an insight?

An insight is a deep understanding of a particular problem, situation, or behaviour.

It goes beyond obvious information, representing valuable data uncovered or revealed through analyzing underlying facts, pain points, or truths. Insights are essential for decision-making, growth, and innovation in business.

When I reveal insights in business projects, they help me bridge the gap between data and action. By uncovering the "why" behind trends, problems, or behaviours.

To give you an idea of what an insight is, consider the following example:

Customers buy less during weekdays. This an observation or a fact.

Now, how important is this data? it is important. but what can you do with it? It is a good start but you need more to make the right direction or decision.

So, you uncover the following insight: Customers are too busy on weekdays to shop—they are working during the day and too tired by the end of it. Offering a delivery service would be convenient for them and could lead to increased sales.

See how the insight helped in finding a solution? It bridged the gap between data and action.

To uncover insights, you need to derive them from your findings. Look deeply into the situation, analyze it thoroughly, and make meaningful connections.

So, how do you derive insights from your findings?

1. Collect Data: Gather qualitative and quantitative information about customers, operations, market trends or whatever you’re dealing with.

2. Group data: Categorize common and similar information in categories.

3. Visualize data: Make graphs or charts to help you see wider.

4. Identify Patterns: Analyze the data to spot recurring themes, behaviors, or anomalies.

5. Ask 'Why?': Dig deeper to understand the reasons behind the patterns or trends.

6. Connect the Dots: To discover or reveal insights, relate it to the broader business goals or challenges.

In the beginning, ambiguity is high. However, by understanding, capturing, analyzing, and asking the right questions, you eventually reach a phase of clarity. It is only then that you uncover the golden nuggets.

You might ask “why can’t impacted audience or customers just reveal the insight themselves ?“

People share the problem but not the cause or the factors behind it. No one will volunteer to do the digging for you, nor will it occurs to them that they need to uncover reasons behind the cause. You have to put in the work if you want to find a proper and innovative solution.

The reason pain points are always a surface level data. They represent the top-of-mind issues that people share.

Why insights are important?

Insights provide a clear understanding of challenges and opportunities. Enabling more informed and strategic choices.

By understanding customer needs and behaviours. Businesses can tailor products, services, and communications to meet expectations.

Insights reveal unique opportunities or inefficiencies. Helping businesses innovate and stand out in the market.

Data provides the raw information, while insights help make sense of that data by identifying patterns, causes, or opportunities. In other words, data is the foundation, and insights are the valuable interpretations that drive decisions and actions.

Question beyond what people share. Derive insights like extracting butter from milk. Valuable information isn't easily spotted or handed to you—it takes one to reveal the "secret."

No one has ever found raw gold just lying on the surface of the earth, waiting for someone to pick it up.

Do you question the insights handed over to you?

Thanks for reading, we will talk in the next letter.

Ahmed

By the way, here is:

1. A fun way to connect with people that leads to opportunities Toilet Mind

2. A new way to innovate and solve business challenges Neo Strateje