Intuition and experience aren’t good enough in today’s highly competitive landscape of home services. If you’re still doing the same old things, you’re going to get left in the dust.

That’s why today we’re going to talk about data-driven decision making (DDDM), and what it means for you and your business.

What is Data-Driven Decision Making?

Data-driven decision making is making strategic decisions for your business based on data (facts and metrics). We often do things because they “feel right,” but does that mean they are actually the best decision for your business?

According to Tableau, “83% of CEOs want their organizations to be data-driven but only 25% of companies are leveraging their data to its full potential.” Do you fall into this category?

In short, DDDM is about implementing a systematic approach to gathering data based on strategic business goals, and then using that data to influence how you make decisions.

Does DDDM Give My Business an Advantage?

Any business owner has to ask the question right away: “Why should I care?” The answer? The businesses that ignore DDDM are going to be vastly less competitive than those that implement a data-informed approach. It’s not just conjecture, either. The current data we have around DDDM in small businesses speaks for itself.

Data-driven decision making is not a brand-new concept, either. In fact, as far back as 2012, two professors at the MIT Sloan School of Management were researching the impacts of DDDM in businesses. Their findings about DDDM benefits for businesses included 6% higher profitability and 4% higher productivity.

In 2015, BARC research published a survey detailing the benefits of big data for businesses that continues the support in favor of DDDM. The results included an 8% increase in profitability.

In 2014, the McKinsey Global Institute released findings on the use of customer analytics. They found that customer analytics boosted customer acquisition by 2200%, customer retention by 545%, and existing customer sales by 640%.

How Does Data-Driven Decision Making Apply to Contractors?

In the home services industry, we see a lot of common trends. Everyone is using the same CTAs, the same coupons, and often the same processes and systems. How do you stand out? How do you know if what you’re doing is actually working?

As they say, what gets measured, gets managed. With DDDM, you’re approaching decisions differently than just assuming what’s working. You’re collecting raw data, interpreting it, and using it as the foundation for decisions. No more guesswork – just plain facts to guide you.

Implementing DDDM Into Your Business in 3 Steps

Implementing data-driven decision making into your business doesn’t have to be difficult! Start by being intentional about the shift. Getting your team to buy in and cultivating a culture of data is the first step towards successful implementation.

1 — Identify Your Goals

Start with a simple list of goals for your business. From there, you can extrapolate KPIs to keep your company on track to meet those goals. Where do you want your business to be at the end of 2024? Higher sales? Better customer satisfaction? Lower overhead?

2 — Gather Your Data

Once you have your goals in place, gathering and tracking data becomes the next phase. Tools like ServiceTitan or Housecall Pro can be invaluable for success.

3 — Use the Data To Make Decisions

Analyze the data you’ve collected and start using it to make decisions. No more “I feel like” statements. You have real, raw data to understand how your business is performing. That’s how DDDM gives you a competitive edge over those who aren’t using data to this level.

RYNOTrax

The RYNOTrax dashboard provides valuable insights about your digital marketing campaigns, including:

  • Monthly statistics
  • Google Analytics reporting
  • Contact form/email classifications
  • Call classifications
  • Trend findings
  • Highlighted calls to reflect best practices
  • CSR improvement opportunities

Our Call Listening & Reporting team goes a step further. Unlike services that use simple metrics like call length, we focus on real leads, categorizing each lead by service and tracking its quality. How’s that for transparency?

Stay Ahead of the Competition

Data-driven decision making is how you’re going to crush the competition. As home services become increasingly competitive, leads are harder to secure, and external factors like the economy add challenges.

Doing the same old thing just won’t cut it anymore. Are you doing what you need to dominate your market? Does your digital marketing company share that vision?