Digital Analytics Association chairman Jim Sterne highlights importance of asking 'good questions' in data analytics
Asking good questions is the key to understanding data and analytics according to Jim Sterne, chairman of the Digital Analytics Association.
Speaking at this year's SMX London conference at Stamford Bridge this morning, Sterne spelled out his vision as to how a person could become an 'insight wizard' within their company, offering his advice on the best methods to view and analyse data.
"You have to be a great analyst" stated Sterne early on to a room full of search marketers. "You have your hands on the numbers and you have visibility over an area that everyone else in the company is not looking at at the moment. Use that to provide insight into what's happening in the market place and discover where the company might be going."
Sterne highlighted the vast qualities of data being collected by companies through various touch-points, the difference between the data sets and also the number of tools now available to help analyse that data.
"You have to collect it, clean it, move it around, it is the mechanics for data...you're responsible for believing in it and trusting it and knowing how far you can trust it. Is it accurate? Is it current? At what level can I trust it? - You need to understand the data well enough to explain it to others." He would later recommend that those working with data should take acting lessons in a bid to better communicate and present their findings to the company, and said that they should also relay their opinions as well. "You have a crystal ball - tell me what you think and be specific!"
Sterne recommended that before analysing data, questions to be answered should be laid out. "You need to understand the problem you're trying to solve and it has to be well defined."
He later added: "Segmentation is your friend" while analysing behaviorial data. "It almost doesn't matter how you segment; time of day, source, IP address - everybody is not the same," before describing averaging out data as 'a tool of the devil". He continued "never look at an average of anything. Not going to help - segment."
Of the importance of asking good questions, Sterne explained that he learned early on in his career the importance of questioning companies in order to offer them advice.
"Asking good questions is the secret to this business...the last question that is a sure sign that I am out if my depth if I ask it; 'what's the hard part?' That's when people will open up and explain what's going on."
Sterne also described analytics as "fuzzy numbers" which allowed for the use of 'predictive analytics' and told the audience that they should aim to tell stories in a bid to help companies and people achieve their goals.
He also highlighted the importance of creativity saying that it was still "an absolute must" and that data analysis was about "being inventive".