Measurements Do Not Equip to Insights

Analytics efforts often fail at companies because teams do not use tracking data to identify insights. Simply gathering metrics without acting on them is like getting entertainment instead of real news. Measurements, which are observations or data points, do not equate to insights because they lack context. Insights provide value when they answer the question of why someone is acting a certain way, allowing for informed action. For example, knowing that power users do four times more bookings is a measurement, but understanding that power users are more likely to use a free shipping discount on a high GMV basket, while non-power users won't convert any better, is an insight that informs marketing strategy and spend. To obtain insights, properties need to be instrumented into events, allowing for segmentation and hypothesis testing. Only through this process can teams gain a causal representation of their findings.

Transcript

Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.