Measurement plan help us to understand what we’re talking about when “analytics”, a buzzword in many business meetings, is being used. Think of it as your GPS to help you navigate through the confusing world of data, market trends and numbers.

The goal of this plan is to achieve clarity. Yes, clarity. The word clarity is refreshing, like a cold cup of coffee in the morning. A measurement plan that is effective will focus less on collecting every bit of data and more on the data which propels your business tactics.

Let’s stick to the basics. Setting up an effective measurement plan usually starts with a clear goal. Vague? Not really. Say your business is aiming to increase online revenue by 20% within the next 3 months. Your plan should then detail the specifics: what consumer behavior online leads to a sale, or which marketing touchpoints the majority of users interact with. The process is similar to piecing a picture together. You may know the final result, but it’s important to distinguish the sky from middle shrubbery.

Integration is crucial for moving forward. In the past, departments of businesses hoarded their data like squirrels did acorns. The market team wasn’t aware of what the sales team was doing and vice versa. Modern measurement strategies encourage integration of these silos. Imagine beans spilling over the top of a tortilla taco. Not a very pretty sight, is it not? Integrated systems keep your data safe from spilling or getting lost when it is translated between departments.

To choose the best metrics is like picking apples out of an orchard. You don’t want the apples that look beautiful, but are bland. In a similar way, you want to track variables that demonstrate performance and inspire action. Metrics like the cost of customer acquisition, customer lifetime, and engagement are chosen because these directly impact profitability and growth. These numbers are not just numbers. The market is telling you in a whisper if it’s the right way to sail.

Here, we see many businesses struggle with analytic paralysis. The common pitfall is having too many data points and not enough understanding. But a solid measurement plan will emphasize the importance of actionable information. Consider the following: If you learn from your data that eight out ten customers jumped ship just before they made a purchase on a newly redesigned website, this could mean something was wrong with the design. This insight is worth more than ten different pie charts displaying visitor demographics.

Integration of the business strategies is next. It is at this stage that your collected data comes to life. In other words, if you find that people aged between 25-35 are most likely to visit your evening website, they may be procrastinating. Perhaps adjusting your ad times for this time period will result in better engagement. The act of acting on insights transforms stagnant data into a flow of strategy.

Last but not least, a plan for measuring performance is not just one-off. Businesses change over time, market dynamics can shift and what worked for the past fiscal year might no longer be valid today. In this way, it is more necessary than a choice to review your measurement plan periodically. Replace old spices with new ones in your kitchen. After all, you wouldn’t wish for your food to taste the same as last year’s Thanksgiving.