How to build a complete set of “data index system”?

2022-05-25 0 By

As data officially becomes the fifth factor of production after land, labor, capital and technology, its role in today’s society is self-evident.For enterprises, in the process of daily operation, various links, processes and departments are generating a variety of data.Data has become an indispensable source of information and reference for enterprises in almost all business activities such as operation strategy, product planning and brand strategy.Almost all data analysis work will mention a word — “establish data index system”. Although this word is not unfamiliar to everyone, many people are still confused about what data index is and how to build it specifically.Boss: How much traffic did this campaign bring in?You: there are probably ten thousand people……Boss: How was the response?You: a lot of customers are not satisfied……Boss: How’s business these days?You: feel our store all have no customer……That’s what most people say casually when their boss asks them about it.There is nothing wrong with this statement in everyday life. After all, no one would have to ask 123.But in business management, this is a big no-no.Boss: How much traffic did this publicity activity bring you: During the three days of this activity, a total of 12,000 new registered users were brought, among which 6,000 new registered users were added on January 22, exceeding the target of 2,000 people.Boss: How was the response?You: A total of 130 items were returned by customers on January 22, and the return rate was 10.3% within 3 days during the activity.Boss: How’s business these days?You: A total of 560 users came to the store on January 24th, the rate of arrival was 20%, 34% lower than expected.And then with a visual analysis chart, is a perfect “data” report!Data is my random pinch, but the logic behind the data is these four words: “data indicators” 01 Data indicators overview Before understanding what data indicators are, we consider: why indicators exist?What problem is it supposed to solve?The development of human science is advancing with The Times. In order to make the experiments and results of natural science more unified and convenient for standardized measurement, some standardized professional indicators emerged at the historic moment.With the development of human society, social science also needs statistics more and more to measure things, and a series of statistical indicators have gradually come into being.With the development of new information technology, data indicators are gradually recognized by the public as a method to measure goals.From the perspective of social science, indicators are the category of statistics, used for descriptive statistics of data.Index is the concept of total quantitative characteristics and its numerical synthesis, so it is also called comprehensive index.In practical statistical work and statistical theory research, the concept of describing the overall quantitative characteristics is often directly called index.Traditional indicators include Gross Domestic Product (GDP), Gross National Product (GNP), Consumer Price Index (CPI), csi 300 Index and so on.1. What are data indicators?Data index is different from statistical index in the traditional sense. It is a summary result obtained through data analysis, and is the measurement value after business units are refined and quantified, so that business objectives can be described, measured and disassembled.Data indicators need to be further abstracted from business requirements. Data are collected through buried points, a set of calculation rules are designed, and user behavior changes and business changes can be finally explained through BI and data visualization.Commonly used data indicators are PV, UV and so on.The indicators described in this paper are methods of measuring objectives, which are composed of dimensions, summary methods and metrics, as shown in the figure below.Among them, the dimension refers to the Angle from which to measure, is the perspective and direction of looking at things, determines to measure indicators according to different angles.Summary method refers to the methods used to measure, is the statistical summary of data.While measurement is mainly to clarify what the specific goal of things is, is the measurement of a physical quantity, but also used to clarify the measurement unit of data.For example, the total playback duration refers to the total duration (in minutes) of audio playback during a period of time.According to the above disassembly, the dimension refers to the period of screening, the summary method is the sum of the calculated time length, and the measurement is the uniform unit – minutes.Here, we can understand that the index is composed of these aspects, equivalent to English word formation, prefix, suffix and so on together to form a word.2. What is the indicator system?The essence of systematization is to organize data indicators systematically, and specifically classify and stratify different attributes of indicators according to business models and standards.Of course, different business stages and different business types will have different classification standards for different stages.The data index system contains abundant statistics. From the macro point of view, it is a relatively comprehensive organic whole.From the microscopic point of view, each data indicator has its specific meaning and reflects the objective fact of a certain detail.Different data indicators have different definitions and logic. These various statistics together constitute the data indicator system and make it produce indelible value.In general, the data indicator system is a systematic summary of business indicators, which is used to clarify the caliber, dimension, index logic and other information of indicators, and to quickly obtain the relevant information of indicators.3, the value of building an indicator system What is the use of building an indicator system?Why to build index system for data analysis?What’s the use?Probably not for most people.In my opinion, the value of establishing an indicator system mainly includes three points :(1) establishing a standard for quantitative measurement of business. The indicator system can establish a standard for quantitative measurement of business, and the purpose of data analysis is to explain, measure and predict the development of business.: measure a stores operating condition, store a month net profit of 200000 yuan, see this indicator light feeling the store profits, the development should be good, but a look at the first two months of net income, found in the first two months of net income are more than 400000, added this one index, we found that the operations of the store there may be a problem.In the process of measuring business conditions, the measurement of single data index is likely to be one-sided, so we need to supplement other indicators to make our judgment more accurate.Therefore, only by building a systematic indicator system can business development be comprehensively measured and orderly business growth be promoted.(2) reduce duplication of work, improve the efficiency of analysis with the index system, data analyst can do some temporary less number of live, after the index system establishment should be able to cover most of the temporary data analysis requirements, if the index system set up, there are still a lot of interim analysis of demand, that prove the index system is problematic.(3) To help quickly locate the problem to establish a system indicator system, with process and result indicators, indicators before and after the correlation, you can backtrack and drilling, quickly find the reason for the fluctuations of key indicators, the boss let you analyze the reason, no longer need to be sad.However, the premise of these values is to establish a reasonable and effective indicator system, and the data quality is guaranteed, but the data quality cannot be guaranteed. No matter how well the indicator system is built, the results of analysis are not meaningful.4. How to judge whether the index system is effective or not?How to judge whether the index system I established is reasonable and effective?Someone summed up four standards: (1) Completeness: can fully explain the current situation of the business, no repetition, no omission.(2) System: can accurately reflect business problems, help problem positioning and target formulation.(3) Executable: the definition is clear and clear. After the establishment of this index system, it can guide the data development students to formulate a reasonable data underlying structure and save time for everyone.(4) Explicable: Process indicators and result indicators do a clear classification, easy to understand we have a consensus.Step 1: Why do I need “data Indicators”?In purpose-driven business, the first question you need to ask is: “Why am I building metrics at all?”In our daily work, we often blurt out, “Our products are selling well this year!”.But if it’s really serious, the other side will be blocked by you every minute.The above chart can fully explain the question “why to build a data indicator system”.A business involves many aspects, and only one indicator can’t adequately explain the problem.It often needs a logical set of data indicators to describe, which is “data indicator system”.Step 2: How do I build a data indicator system?As the saying goes, “The army and horses are not moving, and the food and grass go first”, before building the data index system, we should first understand the “five elements” of the data index system.I.e., the core index (also called index of main indicators or class) secondary index (service in the process of the core indicators) index (to complete the process of the core index and dismantling) regional index (one of the secondary index classification dimension) criterion (each index of the auxiliary decision-making) specific process is as follows: 1, determine what the core index is the core indicator?For example, “How do you judge how well a product sells?”The most direct indicator is the amount of money sold.Among them, the sales amount is the core indicator, also known as the “master indicator” or “primary indicator”.Note: The main indicators are not unique, and may be needed for comprehensive evaluation in practical applications.For example, if the product sells well, the amount of money is not enough, but also the gross profit, sales quantity, inventory and so on.Thus, there are at least three main indicators: amount of money sold, number of units sold, and gross profit on sales.The relationship between the two indicators is usually shown in the form of a formula, such as: Amount of sales = number of users * payment rate * unit price of customers that is to say, if the amount of sales is not up to the standard, we need to analyze the following reasons: Is the number of users less?Are customers less willing to buy?Is it too cheap?At this time, it is necessary to disassemble the main target, and the specific disassemble method is shown in the following figure (the picture is from the down-to-earth Teacher Chen’s “What are data indicators? 5+5+5”). 3. Pay attention to the process indicators.Sales is the result of sales leads, pre-sales follow-up, demand confirmation, product experience, price negotiation and contract signing.Therefore, in order to manage the sales amount more accurately, it is necessary to manage these process indicators. Again, taking toB business as an example, combined with the sales funnel in the figure above, the final total sales can be divided into four indicators, taking this template as an example: Customer management CRM lead quantity: the starting point of sales, directly linked to the effect of publicity and promotion.Winning orders: the number of signed orders, which is the last step in the sales funnel. Time to complete orders: From leading into the pool to signing orders, which reflects the efficiency of following up leads.4. This dimension is mainly used to divide the main indicators. If you are familiar with the sales business, you will know that the sales team of the product is divided into war zones, such as south China war zone, east China War zone and so on.To find out how the total amount of money sold was constructed and how much was accomplished by each theater and team, you can add dimension to the category.5, clear judgment criteria Even with the above four points, we still can’t say: A product sells well.Because good is an adjective, as opposed to bad.Hence the need for a point of comparison.For example, compared to the previous quarter’s sales, year-on-year growth;For example, compared with similar products in the market, how are sales……And so on.Step three, after the setup, how should I use it?With the above five data index elements, it is very convenient to apply: 1) the main index is the most core, first look at the core index such as the main index is the sales amount, first see whether this month reached the standard?Is there any surplus if the target is met?How much is the deficit if it does not meet the standard?This will help us know what the problem is and how big it is.2) Look at the secondary indicators and process indicators, which link is not done well, it is too few clues, we need to increase promotion efforts;Or follow up the success rate is low, have to improve sales ability;There is something wrong with the quotation and we must increase the discount.How to deal with the problem is clear.3, finally look at the classification dimension which areas have not done well, is not always done well;What areas are doing well, are they barely finishing or are they going up.What is the relationship between theater completion and region?It’s easy to see which theater is doing well and which theater is not.The above.If you feel useful, remember to like + follow @Jiandaoyun