Are you making decisions with only half the picture?
Many managers rely too heavily on quantitative data, neglecting the human context behind the numbers.
That’s because business schools typically teach quantitative analytical thinking, focusing on numerical data while neglecting non-quantitative information. This may be because qualitative information is considered to be less rigorous and is difficult to measure. Focusing only on the numbers means that decisions are made with only half the relevant information.
Businesses may not realise how often they make bets on human behaviour. When they try to predict which products are most likely to sell, which employees to hire or what price customers will be willing to pay, companies are relying on judgments about human behaviour.
Numerical data, the sort of data you get from internet browsers, social media metrics or email open rates, is the opposite of qualitative contextual data.
This numerical data is an abstract representation of the world and lacks context and colour. It is only able to explain what we do. In contrast, contextual data captures emotions, cultural context and lived experiences that help us understand not just what people do but why they do it.
Relying on numerical data and ignoring contextual data creates an incomplete understanding of human behaviour that can lead to missed opportunities and poorer decision making.
Get a more complete perspective by incorporating qualitative contextual data into your decision-making process:
Collect contextual data: Spend time in the environment and social contexts that shape your customers’ behaviour.
Ask deeper questions: Move beyond "What are the numbers saying?" to "What stories are the people living?"
Make your analysis more holistic: Combine quantitative data with qualitative understanding to create a more complete picture of your audience.