With so much data available to businesses, identifying areas that need improvement to spark change can be challenging. This information can be found in various forms, but without the ability to analyze and discover actionable data insights, success will remain out of reach. To pave the way to success, you’ll need to understand what actionable insights are, their benefits and the best ways to go about finding them.

What are actionable insights?

Actionable insights provide specific recommendations for concrete actions that businesses should take based on their analyzed data. An actionable data insight is more than plain observations or raw information gathered. It’s a clear, relevant and followable guide for identifying and achieving measurable improvements within a business model.

Top characteristics of actionable insights

  • Data-driven: an actionable insight is not pulled out of thin air, but a result of analyzed data, including market research, customer feedback and financial reports.
  • Specific: actionable business insights are never vague, as they tie data analysis to clear explanations.
  • Action-oriented: actionable data insights are tied to specific challenges and circumstances and provide a clear “what’s next” to help you make the best decision.
  • Relevant: actionable business insights apply to the specific problem at hand and can be implemented by the appropriate decision-makers.
  • Understandable: a helpful insight distills a complex issue into practical steps that those within the project can manage.

What are some examples of actionable data insights?

Familiarizing yourself with actionable data insights is one thing—understanding real-world applications is another. An actionable business insight could look different across different types of businesses.

For example, in marketing and media, analyzing customer behavior data to identify preferences and inform engagement-increasing campaigns is a clear and actionable data insight. In operations and manufacturing, identifying inefficiencies by monitoring supply chain data and discovering process optimizations that reduce costs provides valuable, actionable business insights.

Data insights vs. actionable insights

Actionable and data insights differ in their definitions and purposes. Data insights can be provided based on data analysis and often reveal what happened and why. Often, data insights are used to inform decisions within different departments, adding context to the raw data numbers.

Actionable business insights take the data insight to the next step. They are focused on improving the organization or a process within the organization.

What are the benefits of actionable insights?

Implementing actionable insights can help take your data to the next level and improve various aspects of your business. While data can often provide information, team members often get stuck in analyzing the data and forget the purpose behind the data. When the goal is to create this form of insight, we can find the what and the why to form a plan for next steps.

5 best benefits of actionable business insights

  1. Data-driven decision-making: when using these insights, data is taken to the next level and decisions are made based on the data (as opposed to finding data to support decisions).
  2. Customer focus: through user data, you can fix bottlenecks and improve processes to provide better customer service.
  3. Efficiency: the more you understand what works and what doesn’t, the more you can refine the actionable data insight process to save time and reallocate resources as needed.
  4. Growth: actionable data insights directly impact the bottom line through helpful actions as well as lead to the development of new products and revenue streams.
  5. Competitive advantage: when companies monitor their competitors’ success and progress, they often overlook their own customers' evolving needs. Take the time to understand your own users’ preferences to stay ahead of the game.

How to create actionable business insights

If you’re responsible for the project, incorporating this method into your day-to-day can sound daunting. Our business consultants can break down the process of creating actionable data insights into five simple steps:

Step 1: Objective

Define the objective. Are you focused on improving customer service wait times? Increasing sales for high-spending customers? Streamlining processes within departments?

Step 2: Data

Centralize available data regarding the focus at hand. Historical data can be helpful in visualizing and analyzing trends, so consider gathering a variety of data ranges as applicable to the objective.

Step 3: Analyze

Data should be analyzed using tools and processes that help visualize the data and identify trends and patterns within. This is a key step in every single actionable business insight process.

Step 4: Define actions

After you’ve identified the trends and patterns, you can create an action plan to improve. For the best actionable insights, remember the characteristics of data-driven, specific, actionable and valuable.

Step 5: Implement

Depending on your implementation strategy, from AGILE to SCRUM, review progress based on actionable insights to ensure their success. If any adjustments are needed, your consultant will be there to help.

Why use a consultant to assist with actionable business insights?

Business consultants provide actionable insights by reviewing data efficiently with tools and processes that most companies do not have access to. While creating the processes internally is possible, an industry approach provided by a business consultant can be more efficient.

What are the top values of hiring a business consultant to aid in actionable data insights?

  • Industry knowledge and experience: consultants possess a deep knowledge of how your industry works and can provide effective solutions for your current problems.
  • Collaboration: business consultants work directly with you, learning your business and helping you make decisions based on your goals.
  • Capabilities: from actionable insights to artificial intelligence, business consultants can help organizations grow with a variety of services.

Take action and watch your business flourish

Understanding actionable business insights is the key to your company’s growth—but you don’t have to do it alone. With a deeper understanding of what actionable insights are and how they help you find success, it’s time to take matters into your own hands and hire a consultant today. Soon enough, you’ll be able to watch your business transform.