Is your analytics solution hunting for a problem?
The world of analytics is rife with tools and platforms promising to solve all your business problems. The issue? Many are solutions hunting for a problem. However, Outcome Centric Guidance (OCG) flips this paradigm on its head, starting with your specific business challenges and then crafting a targeted solution.
Traditional Analytics Tools: Where’s the Problem?
Most analytics tools present themselves as the holy grail of business intelligence. They claim to collect a wealth of data, process it, and provide insightful information for decision-making. Yet, these tools often come across as solutions looking for a problem. They offer an abundance of data, but no clear path to meaningful, actionable insights.
Imagine running a SaaS company, and your analytics tool presents a dazzling array of charts and tables on user behavior. It shows how much time users spend on your platform, the pages they visit, the links they click. But does this data help you understand why users are not converting into paying customers, or why some customers are churning? Unfortunately, the answer is often a resounding ‘no’.
Enter OCG: Solving the Right Problem
OCG, or Outcome Centric Guidance, proposes a different approach. Rather than overwhelming businesses with disparate data points, OCG focuses on identifying and analyzing key business outcomes and the customer journey milestones that lead to these outcomes.
Take our earlier example of a SaaS company struggling with user conversion and customer churn. With OCG, the company can define business outcomes, such as ‘user conversion’ and ‘customer retention’. It then identifies the milestones in the customer journey leading to these outcomes. These could include ‘account creation’, ‘onboarding completion’, ‘first key feature use’, etc.
The company then uses the OCG to track these outcomes and milestones. This approach provides a focused, clear view of what’s working and what’s not in the customer journey, allowing the company to make data-driven decisions to improve user conversion and retention.
OCG in Action: An Example
Let’s walk through a real-life example to illustrate the power of OCG. Consider a global e-commerce platform struggling to increase the average order value (AOV) – a critical business outcome.
Traditional analytics tools would offer a wealth of data: site traffic, page views, time spent per page, bounce rates, and so on. But none of this data directly addresses the AOV problem.
With OCG, the e-commerce platform first clearly defines the desired business outcome – increasing the AOV. Next, it identifies the customer journey milestones leading to this outcome, such as ‘product page visit’, ‘add to cart’, ‘checkout initiation’, and ‘successful purchase’.
OCG allows the e-commerce platform to track these specific milestones and their correlation with the AOV. It provides precise, actionable insights into where the potential issues lie. For example, it might reveal that customers who view the ‘recommended products’ page are more likely to have a higher AOV.
As a result, the e-commerce platform can strategize, perhaps by improving the visibility of the ‘recommended products’ page or personalizing product recommendations.
The OCG Revolution: Analytics that Solve Problems
In conclusion, OCG represents a paradigm shift in digital business analytics. Instead of providing a one-size-fits-all solution and then searching for a problem it can solve, OCG takes a problem-first approach. It begins by identifying critical business outcomes and customer journey milestones, providing clear, actionable insights that directly address business challenges.
The result? Businesses can stop being data rich but insight poor. With OCG, they can focus on what matters: understanding their customers better, improving the customer
Learn more at xenonlab.ai
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