How to Create a Metrics Framework for an Event-Driven Data and Analytics Stack

If there’s been one key shift that we’ve seen in the world of business over the past decade, it’s been the emergence of data as potentially the most important asset that any organization has to leverage.  With advancements in algorithms, data analytics, and statistical theory – the ability to make truly data-driven decisions has become one that separates the companies that survive from those that don’t.

With all that being said, creating an effective event-driven and analytics tech stack can be a challenging journey because there is so much nuance and depth that you need to get your head around in order to do it well.  Here at deepskydata, we have worked with clients across a wide variety of industries and have seen the good, the bad, and the ugly.

In this article, we’re going to discuss the importance of a metrics framework as a key foundation for your data analytics stack.

Table of Content:

Why is a Metrics Framework So Important?
How Do You Create Your Own Metrics Framework?
Let Us Help You Transform Your Analytics Capabilities

Why is a Metrics Framework So Important?

Far too many companies race into data analytics and just start installing tracking tools without giving enough thought to what they’re actually trying to achieve.  A metrics framework is designed to help you avoid just rushing into something that won’t actually provide value and instead gives you a clear and precise path towards a meaningful analytics stack that can take your company forward.

Our metrics framework lays out the core components of your business, the objectives you’re trying to achieve, and draws the necessary relations between these in order to arrive at a shortlist of key focus metrics.  When you use this as the foundation for your analytics activities, you’ll know that you’re deploying your resources efficiently and focusing on what truly matters.

Your metrics framework will affect every decision you make on your data stack moving forward so the more time you spend on it now, the better your data stack implementation will perform over the long term.

How Do You Create Your Own Metrics Framework?

Your starting point should always be your business objectives.  What are you trying to achieve with your organization?  What is your mission?  Getting really clear on these helps to narrow down the key outcomes you’re trying to achieve and gives you a north star to work towards.  Write these down as clearly and simply as you can.

Next, you’ll want to identify the key components and processes within your workflow that make your business tick.  What actions are at the heart of your day-to-day operations?  Again, write these down so that you have everything on paper in front of you.

Once you’ve identified the key business systems and processes, you can then do some brainstorming about some of the quantitative metrics that might provide insights on how your business is performing.  Take each business system one by one and list as many potential metrics as you can think of.  Don’t hesitate here, just get as much down as you can.

Once you’ve got your brainstormed list of potential metrics, sketch out a typical customer journey step by step from your initial touchpoint all the way to your after-sales service.  The goal here is to break down each step a customer takes along the way so that you have a clear understanding of the funnel you’re walking a prospect through.

At this point, you should have a simplified breakdown of your core business components and how a customer moves through their journey.  You now need to go back to your potential metrics and look for ones that not only speak to these key components but also align with your long-term business goals and objectives.  Spend some time on this to think clearly about what truly matters and select metrics that relay that focus.

We recommend that you start with just a few focus metrics that are timebound so that you aren’t overwhelmed by complexity.  You can always add and adjust these later on using the backlog of potential metrics that you’ve already created.  But to get started, it’s important to narrow down your focus metrics to just a couple.

To get more depth into these metrics, you can always define segments that provide a more granular view of what you’re tracking.  These segments can be split according to demographics, industry, or any other categorization that makes sense in your unique setup.

Let Us Help You Transform Your Analytics Capabilities

As you can see, spending some time creating a metrics framework will help you to make the most of your tracking activities and build something from the beginning that is going to deliver real tangible value.  Going through this process proactively will save you a lot of headaches down the road and it’s well worth doing.

If you’d like more assistance on your tracking journey, be sure to check out the popular packages we have available at deepskydata.  Alternatively, schedule a free consultation call, and let’s explore how we can help you with your unique situation.