Top 3 Techniques Used to Uncover Actionable Patterns and Trends
How to Recognize Significant Insights from Summarized Data
Enough with unboxing your Amazon orders, let’s unbox your data now!
So you’ve got your summarized data sitting in front of you, and now you’re wondering, “What’s the good stuff here?”
Don’t worry — I’m here to help you become a “pro” at spotting those action-packed insights that can make a real difference.
Why Finding Insights Matters?
Before we jump into the “how,” let’s talk about why this is so important.
Because great insights are those valuable discoveries that can help you or your organization make better decisions.
Whether you’re analyzing sales patterns, social media engagement, or scientific research, finding meaningful insights is always a good thing.
The Art of Insight Mining: The Procedure
Technique 1: The “What Catches Your Eye” Approach
First things first — let’s start with basics and talk about what to look for when you’re scanning your summarized data:
Look for these unusual patterns in your data:
Big jumps or drops in numbers
Unexpected relationships between different things
Regular patterns that suddenly change
Things that just look… weird!
My personal advice to you — if something makes you go “Huh, that’s interesting,” it’s probably worth investigating further!
And 4 Common Patterns for you to watch for:
Trends — going up or down over time
Cycles — patterns that repeat
Clusters — groups of similar things
Outliers — things that stand way out from the rest
Technique 2: The “Compare and Contrast” Method
One of the best ways to find insights is to compare different things. There are mainly two effective approaches to compare things.
Time Comparisons
Group Comparisons
Here’s what you need to look for:
Time Comparisons
This year vs. last year
Before and after a specific event
Seasonal changes
Day of week differences
For example, if you notice your online store gets 50% more traffic on Thursdays, I say, that’s an insight worth exploring!
Group Comparisons
Different customer segments
Geographic locations
Age groups
Product categories
Maybe you’ll discover that customers in coastal areas buy more summer products in winter — now that’s interesting, right?
Technique 3: The “So What?” Test
This is super important! For each potential insight, ask yourself:
Why does this matter?
Who would care about this?
What actions could we take based on this?
What might this mean for the future?
If you can’t answer these questions, you might have an interesting observation but not necessarily a valuable insight.
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How You Should Analyze Your Data To Get Better Insights
Step 1: Get the Big Picture
Before getting into details, you should:
Look at overall averages
Check the highest and lowest values
Notice the general shape of your data
Identify any obvious patterns
If you have done all the steps mentioned above, I am sure you will get the bigger picture like looking into a map without zooming into some specific desired location.
Step 2: Dig Deeper with the “Five Whys”
When you spot something interesting, channel your inner curious kid and ask “Why?” five times:
Example: Let’s say, sales are down in July (India 2024)
1. (Why?) Because fewer people visited the store
2. (Why?) Because it was unusually hot
3. (Why?) Because there was a heatwave
4. (Why?) Because climate patterns are changing
5. (Why?) Because of broader environmental changes
See how each “why” gets you closer to a root cause. — That’s where the real insights live!
Step 3: Look for Connections
Lastly, try to connect different pieces of information:
Does A usually happen when B happens?
When X goes up, does Y go down?
Do certain things always occur together?
Example: Sales are down in July (India 2024)
Connection with Weather:
1. Does a rise in monsoon rains in July correlate with decreased outdoor shopping?
2. In previous years, have July sales dipped during periods of heavy rainfall?
Connection with Consumer Behavior:
1. Do sales usually decrease during the mid-year vacation season when families travel?
2. Are there patterns where consumers prioritize spending on travel and leisure over shopping?
Connection with Marketing Efforts:
1. Did the marketing campaigns in June (pre-July) fail to create enough buzz for July sales?
2. Have there been fewer promotional offers or discounts compared to previous years?
Connection with Economic Factors:
1. Is there a trend where inflation rates or economic instability in June lead to decreased consumer spending in July?
2. How do changes in disposable income typically impact sales in mid-year?
Just the same as you do while solving a puzzle — sometimes you need to connect different pieces to see the whole picture!
Some Common Pitfalls to Avoid
1. The “Correlation = Causation” Trap
One thing you should always remember is, that just because two things happen together doesn’t mean one causes the other.
For instance, Ice cream sales and swimming pool visits both go up in summer, but ice cream isn’t causing people to swim!
2. Confirmation Bias
Another: Don’t just look for things that confirm what you already believe.
You must always be open to surprising findings!
3. Ignoring Context
The last thing, you must always consider the bigger picture.
Example being: A 50% increase sounds amazing, but if you’re going from 2 to 3, maybe it’s not so dramatic after all.
How to Make it a Habit
I must say, developing your insight-spotting skills takes practice. Try these habits:
First, set aside regular time for analysis
Remember always to keep a running list of questions
Also, challenge your assumptions
Lastly, share your findings with others
And most importantly, learn from your mistakes
Wrapping Up
Finding insights is both an art and a science. It takes:
Curiosity to ask questions
Patience to dig deeper
Creativity to make connections
Wisdom to know what matters
Don’t get discouraged if you don’t find earth-shattering insights every time. Sometimes small discoveries can lead to big improvements over time!
Quick Tips to Take Away:
Always ask “Why?” and “So what?”
Look for patterns and exceptions
Consider context
Think about actionability
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