Businesses have quickly gone from “We don’t have enough data” to “We’re drowning in data!”
But the fundamental problems with data remain.
Data is scattered, siloed, and difficult to make sense of. No wonder revenue leaders throw up their hands and go with their gut when it comes to making decisions.
But that’s a terrible way to do business now, when margins are thin and prospects are on edge, says Adam Aarons.
Adam is the CEO of Drata, a compliance and automation platform. He’s a huge believer in the power of data to steer decision-making. We had the opportunity to sit with Adam and learn about how he uses data, and how he parses good data versus bad, using good data to drive his decisions.
Why data in decision-making is so important now
Many modern revenue leaders rely on “gut instincts” and experience to make decisions rather than data. Adam says that even though it’s difficult, it’s crucial for sales leaders to embrace data-driven decision-making as the foundation of their methodology.
In the current economic climate, where businesses must optimize every aspect of their operations, data-driven decisions are paramount. Revenue leaders can gain a competitive edge by basing choices on solid data and insights.
How to separate good data from bad data
However, there is good data and bad data, and it’s absolutely critical that leaders be mindful of which is which. Good data is accurate, relevant, and up-to-date, enabling leaders to make informed decisions. Bad data, whether incomplete or unreliable, can mislead, producing poor outcomes.
“You definitely get more access to data now, and you get more data intelligence versus running different Excel models and trying to figure it out on a whiteboard, which is awesome and is the entire premise of tools like Clari, to provide those powerful insights,” said Adam.
“But really bad data can lead to really bad choices. That’s why I’ve always been transparent, especially with my operations partners, to identify what is ‘good’ data and how we make the best decisions possible.”
Balancing data-driven decisions with experience and instinct
While experience has its merits, data offers scalability and effectiveness. Revenue leaders can uncover patterns, identify trends, and make predictions with greater accuracy by leveraging data. Data provides an objective perspective that helps leaders make informed decisions, prioritize opportunities, optimize resources, and boost overall sales performance.
In light of this, it stands to reason that there is an optimal balance between instinct and a commitment to data-driven decisions, wherein a wise revenue leader is one who doesn’t make major business decisions on pure emotion, but rather points that experience and those powerful gut instincts toward determining the quality of data.
How to build a culture of data in your business
Building a data-driven organization starts by defining clear processes, ensuring data accessibility for all stakeholders, and elevating objective analysis to the highest level of importance. By doing so, revenue leaders enable their teams to work together seamlessly, leveraging both experience and insights to drive success.
Transparency is also vital in the data-driven decision-making process. Leaders must ensure that decisions are based on a holistic view of the data, rather than subsets or biased interpretations. By providing access to the full spectrum of data, revenue leaders empower their teams to make better decisions and achieve collective success.
Ultimately, it’s about making more informed decisions
In an era defined by data, sales leaders must make a conscious effort to break free from the habit of relying solely on gut instincts. By understanding the importance of good data, harnessing its power, and fostering collaboration and transparency, revenue leaders can navigate the complexities of the business landscape with confidence.
So, take the time to analyze the data you have, make informed decisions, and watch your organization flourish in the age of data-driven success.
The Clari revenue platform makes it easy to monitor your end-to-end revenue process, allowing you to make data-backed decisions quickly and confidently.