With the vast amount of data at our fingertips, it’s tempting to measure everything. Because of this, many organizations suffer from a ‘more is better’ mentality. Organizations want to capture everything to make sure that they’re not missing anything. But, in doing so, they end up seeing noise and no signal!
When building an impactful customer data model, keep these 3 things top of mind:
Not all data is important
Not all data drives insights
Not all data that matters to you matters to your customers
The most important consideration when selecting metrics for your data model are their actionable properties; can your team actually do something about this data? If not, it may just be a vanity metric. If you fall into the trap of including everything and anything, you’re inadvertently overwhelming your CSMs with data that they can’t do anything about and that may end up distracting them from directionally relevant data that will actually help them reduce churn and drive more value for customers.
To make your data model as valuable as possible for your team, ask yourself the following questions before selecting key metrics to include:
What does this data point tell me about my customers?
Is it actionable? Can my team impact this metric?
Do we need more than one data point working in concert to drive an actionable insight?
What are some challenges you’ve encountered building an actionable customer data model?