We can share an example of data marketing to better understand this process. Consider an e-commerce platform company where the Month-over-Month (MoM) profit has declined. Although the overall number of purchasing customers has increased, the average profit per customer has decreased.
In this situation, the first step is to identify the problem. Defining the problem as specifically as possible is crucial because it helps uncover the root causes. Let’s break this down through an example.
"The Month-over-Month turnover has declined."
This is a fact, but it lacks specificity.
"The Month-over-Month turnover has declined by 10 percent."
Adding measurable details defines the problem more clearly.
"The Month-over-Month turnover has declined by 10 percent, which is the first decline this year."
This establishes context and highlights the urgency of the issue.
"The Month-over-Month turnover has declined by 10 percent, although the number of purchases has increased by 30 percent."
This points to a potential discrepancy requiring further investigation.
"The average purchase profit has declined by 48 percent, resulting in a 10 percent overall turnover decline."
This identifies the root cause of the problem.
