Analytics & Testing

Godin: Intuition vs Analysis

Seth Godin asked a great question that is usually quite a point of contention for SaaS or technology companies and their product managers…. Do you go with Intuition or Analysis?

My personal view on this is that it’s a delicate combination of the two. When I think about analysis, I think about data. It could be data regarding competition, use, feedback, resources, and productivity. The problem is that analysis heavily depends on history, not innovation and the future.

While working in other media industries, I saw analysis as the key to all decisions. This was rarely innovative. Industry leaders scoured industry magazines and waited until someone else did something positive; then, they would try to adopt it. The result is a dying industry with scarce innovation.

Intuition, on the other hand, can be quite deceiving. Deciding without comprehensively analyzing data and discussing your idea with other experts or customers can be a considerable risk. A consumer’s perspective is much different than a provider’s. So – a provider’s success at making intuitive decisions weighs heavily on their ability to read the market. Consensus is a dangerous approach as well.

To quote Despair.com:

Despair: Teamwork

A few harmless flakes working together can unleash an avalanche of destruction?

Here’s another interesting point… isn’t intuition based on historical data? Sure… many leaders can’t point to the dataset, but their experience drives their intuition. For example, I’ve met many

brand marketers who have far better results with their intuition than with actual data.

I suppose it all comes down to your risk temperament. How much risk are you or your organization willing to take on with your intuition and/or your analysis? If you’re always playing it safe, someone will pass you by who is willing to take risks. If you’re always taking risks, catastrophic failure is imminent.

In developing products, the analysis can consider intuition if risk and value are accurately determined. High risk, with high value, is worthy of consideration. High risk, low value will lead to your demise. Managing risk is the key to proper decision-making. Managing risk should not be confused with not taking a risk, though!

Douglas Karr

Douglas Karr is CMO of OpenINSIGHTS and the founder of the Martech Zone. Douglas has helped dozens of successful MarTech startups, has assisted in the due diligence of over $5 bil in Martech acquisitions and investments, and continues to assist companies in implementing and automating their sales and marketing strategies. Douglas is an internationally recognized digital transformation and MarTech expert and speaker. Douglas is also a published author of a Dummie's guide and a business leadership book.

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