Why Most Dashboards Fail: The Power of Signal Analytics to Drive Results

December 17, 2024
Why Most Dashboards Fail: The Power of Signal Analytics to Drive Results

If you've ever looked at a dashboard or produced one yourself, you might wonder: What’s the point of all this? For many businesses, da

If you've ever looked at a dashboard or produced one yourself, you might wonder: What’s the point of all this? For many businesses, dashboards become a graveyard of unused data. You see the numbers, but nothing changes.

After working with over 70 clients in marketing and sales data, we’ve uncovered the problem—and the solution. It comes down to signal analytics. This powerful concept turns stagnant data into actionable insights that drive real results.

But first, let’s go back to basics—and into a bit of math. Don’t worry, it’s not as scary as it sounds.

Why Data Without Context is Useless

To understand signal analytics, we need a quick metaphor: kinematics.

Kinematics, a concept from physics and engineering, tells us how motion works. As a former mechanical engineer, I’ve come to see its parallels in data:

  1. A Point Without Reference = No Insight
    If you have a single data point but no reference—like an axis or comparison—it’s meaningless. Imagine trying to navigate without knowing where you are on a map.
  2. A Point With Reference = Position
    Adding context, like comparing one data point to another, gives you position. For example, seeing customer age alongside their place in the buyer journey is more useful.
  3. Velocity = Direction and Movement
    This is where data starts to matter. Position alone tells you where things are, but velocity shows movement and direction. Think about crossing the street—you don’t care where a car is, but where it’s going and how fast.
  4. Acceleration = Change in Velocity
    Even more useful is acceleration: Is the car speeding up or slowing down? In business, this translates to understanding whether growth or decline is accelerating.

From Data to Signal Analytics: What’s Missing?

Most businesses operate at levels 1 or 2: they collect data (points) and maybe provide some context (position). But to truly move the needle, you need velocity and acceleration.

That’s where signal analytics comes in.

The Signal Analytics Formula

At its core, signal analytics is built on two simple equations:

  1. Data + Action = Result
    Every data point you collect should lead to an action, which produces a measurable result.
  2. Data + Result = Action
    By analyzing results against your data, you can refine your next actions. This feedback loop uncovers patterns, helping you identify signals—data points that truly matter.

Signals are the combination of data, action, and results that have the highest velocity and acceleration. In simpler terms: signals tell you what’s working and why.

Real-World Examples: What Signals Can Do for Your Business

Example 1: 50% Year-Over-Year Customer Growth

One of our clients saw a 50% increase in customers after implementing signal analytics. The change wasn’t magic—it was about understanding how people moved through their funnel and sending the right messages at the right time.

Example 2: Revenue Growth Without More Deals

Another client’s total deals didn’t spike dramatically, but revenue skyrocketed after deploying signal analytics. Why? They closed deals faster and retained customers better. By analyzing signals, they optimized their sales process to focus on what truly worked.

Why Signal Analytics Works

Traditional data analysis gives you pretty charts and graphs. Signal analytics gives you answers:

  • What actions drive the biggest results?
  • Which data points matter most?
  • How can you improve velocity and acceleration in your funnel?

Business isn’t static. It’s a living, moving thing. To succeed, you need to find the signals—those critical data points and actions that produce outsized results.

How to Get Started with Signal Analytics

  1. Stop collecting data for data’s sake. Focus on actionable metrics that tie to results.
  2. Look for movement and change. Analyze velocity (direction) and acceleration (rate of change) in your metrics.
  3. Close the loop. Continuously measure results, refine your actions, and repeat.

Find the Signal in the Noise

Data without action is useless. Dashboards that don’t drive decisions are just noise. The real magic happens when you combine data, action, and results to uncover signals.

Signal analytics is the key to unlocking growth, improving efficiency, and finally answering the question: What does this data really mean?

So, the next time you’re staring at a dashboard, ask yourself: Where’s the signal?

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