Business Data has never been as available – perhaps even as unavoidable – as it is today, with every expense tracked, every transaction sliced and diced, and every client described down to the finest nuances of their purchasing history and personal preferences.
Mike Saunders, CEO of Digitlab explains the findings of the third annual State of Digital Survey (Image supplied)
In many ways, it’s a golden age. But there’s a growing gap between the businesses that use this data to hone their strategies and improve their performance, and those that only think they do.
There is a sharp divide between data-driven businesses and those still guided by instinct or budget constraints.
How does good data drive confident decision-making?
What’s the ROI on investments in data confidence?
In its third annual State of Digital Survey, Digilab reveals how data improves business confidence, and confidence drives growthThe Survey explores the differences between stats-driven businesses and the rest.
And one of the key differentials is confidence: when a business has confidence in its data, it uses this data more effectively, improves its results, and outperforms its competitors.
Defining the differences
A major finding from the survey is that there is a sharp divide between data-driven marketers and those still guided by instinct or budget constraints – and this difference may be simply stated as confidence.
- Data-driven businesses
For example, 72% of data-driven organisations express confidence in their own previous experience and success - compared to just 55% of non–non-data-driven companies.
They also prioritise customer data (57%) far more than their less mature peers (31%).
Data replaces hesitation with direction: when businesses have access to clear, validated insights, they can make instinctive yet evidence-backed decisions — confident that each move supports growth.
Data-driven organisations make investment and strategy decisions with greater clarity and conviction.
They use customer feedback, campaign data, and performance insights to validate direction and measure success.
This data fluency allows them to move beyond budget limitations - aligning marketing investment with business objectives rather than reacting to competitor behaviour or short-term financial pressures.
- Non-data-driven businesses
By contrast, non-data-driven businesses often rely on fragmented decision-making frameworks -multiple opinions, external advice, and internal politics - that dilute focus and slow progress.
Without the confidence that comes from substantial evidence, marketing strategy becomes defensive, reactive, and over-reliant on cost control.
The danger is clear: when budgets – rather than data - drive decisions, businesses begin to lose confidence.
Strategy becomes dictated by affordability rather than opportunity, and over time, these businesses are more likely to experience declining marketing budgets as performance stagnates.
In essence, data builds conviction. It enables marketers to act decisively, trust their instincts, and maintain focus on business goals rather than competitor movements or short-term trends.
(image supplied)
Confidence is a business tool
When businesses have confidence in their decision-making processes, they are able to innovate quickly and achieve first-mover advantage in a market.
They are also able to pivot more quickly when the data reveals that a strategy or tactical approach is not working.
Confidence in decisions means that sufficient resources will be allocated to their execution – increasing the likelihood of success.
It also means decision-making is more objective: data-driven confidence reduces the likelihood of such errors as confirmation bias.
Not all data is created equal, however. Poor-quality data can result in poor decisions, so it’s critical that businesses cleanse, validate, and maintain their data regularly.
They also need to ensure that it’s easily accessible. And most critically, they need to invest in technology and processes to integrate their data sets into a single cohesive source that gives them a clear and realistic view of their operations.
What’s the ROI?
When it comes to data confidence, the better question may rather be: what’s the cost of not investing: lost time, wasted investments, an unbalanced or irrelevant product offering, and poor customer retention.
There is no fixed formula for return on investment in data confidence, as it depends on many variables – including the investment in the resources required, and the nature of the business itself.
However, ROI on data confidence is a function of several very predictable and in some instances, measurable key drivers:
- the savings in reduced operating costs
- the efficiencies gained through enhanced decision making
- the opportunities it provides for increased revenues
- the savings achieved in both risk and compliance mitigation
As AI is adopted and integrated into decision-making, quality input data also improves the ROI on these new technologies.
Striding with confidence
Businesses that invested early in data confidence have generally outperformed their competitors.
But it’s never too late, and as AI matures and data becomes increasingly available, these investments are more affordable.
An investment in data confidence is perhaps the most effective way to grow your business.
