These are obviously times of great uncertainty and change. Smart business people know that with change comes new opportunities. Somewhere, entrepreneurial spirits are already making bets and shifting strategies. There is another powerful axiom, however, which rarely gets enough airtime during times of change: In times of uncertainty, focus on what is certain. One certainty in business is that resources can always be better relocated to achieve better returns.
Unless you are one of the lucky businesses booming in these times, there will be budget cuts. This is the perfect time to reevaluate resource allocations using an agile, data-driven picture of your business. Considering that there are few industries untouched by COVID-19, agile decisions will need to be made based on sparse but recent data.
Here are three questions data-driven marketers and those in customer-focused functions need to ask in order to evaluate their resource allocation.
1. Do I know who my best customers are and are they okay? Your best customers should be based on current sales and lifetime value. Yes, your best customers today are important. However, most businesses survive on the 20% to 30% of customers who are consistently loyal and profitable over many years. Once you have identified the most important customers, you should evaluate if their buying behaviors are changing and why? How can you reallocate resources to better serve this segment?
2. Do I know the channels where most of my business comes from and is it under threat? The first step to answer this question should involve a data-driven accounting of your marketing and sales channels. However, some of your most influential channels may be the most difficult to track. Therefore, it is important that you establish or refresh your multi-touch attribution models so that you can better allocate sales to channels. Right now, it might be very tempting to simply rely on direct attribution or easily measurable channels. After all, this approach feels more certain, but it is rarely the right answer.
3. Do I have the data I need to make quick decisions? If your data was messy and hard to work with before COVID-19, then it will be even less helpful now. This might be the right time to think about the minimal data needed to make agile decisions. The word minimal is critical here as the more data you collect, the more complex the solutions become, and agility diminishes. Do you know what measures are most important? Do you need to spend resources on agile data-driven capabilities?