There is a sharp divide between data-driven businesses and those still guided by instinct or budget constraints. How does good data drive confident decision-making? What’s the ROI on investments in data confidence? A new survey from Digitlab reveals how data improves business confidence, and confidence drives growth.
Business Data has never been as available – perhaps even as unavoidable – as it is today, with every expense tracked, every transaction sliced and diced, and every client described down to the finest nuances of their purchasing history and personal preferences. In many ways, it’s a golden age. But there’s a growing gap between the businesses that use this data to hone their strategies and improve their performance, and those that only think they do.
State of Play
In its third annual State of Digital Survey, Digitlab explores the differences between stats-driven businesses and the rest. And one of the key differentials is confidence: when a business has confidence on its data, it uses this data more effectively, improves its results, and outperforms its competitor.
Digitlab is a data-driven marketing firm that works with software partners to help its clients build their brands and grow in the digital economy; the survey captures the evolving relationship between technology, marketing, and business growth. This year’s insights reveal a market that is increasingly mature, pragmatic, and focused. Rather than chasing every trend, businesses are learning to balance innovation with discipline – building marketing systems that are data-informed, AI-enabled, and human-centred.
Defining the Differences
A major finding from the survey is that there is a sharp divide between data-driven marketers and those still guided by instinct or budget constraints – and this difference may be simply stated as confidence. For example, 72% of data-driven organisations express confidence in their own previous experience and success – compared to just 55% of non–data-driven companies. They also prioritise customer data (57%) far more than their less mature peers (31%). Data replaces hesitation with direction: when businesses have access to clear, validated insights, they can make instinctive yet evidence-backed decisions — confident that each move supports growth.
Data-driven organisations make investment and strategy decisions with greater clarity and conviction. They use customer feedback, campaign data, and performance insights to validate direction and measure success. This data fluency allows them to move beyond budget limitations – aligning marketing investment with business objectives rather than reacting to competitor behaviour or short-term financial pressures.
By contrast, non-data-driven businesses often rely on fragmented decision-making frameworks -multiple opinions, external advice, and internal politics – that dilute focus and slow progress. Without the confidence that comes from substantial evidence, marketing strategy becomes defensive, reactive, and over-reliant on cost control.
The danger is clear: when budgets – rather than data – drive decisions, businesses begin to lose confidence. Strategy becomes dictated by affordability rather than opportunity, and over time, these businesses are more likely to experience declining marketing budgets as performance stagnates.
In essence, data builds conviction. It enables marketers to act decisively, trust their instincts, and maintain focus on business goals rather than competitor movements or short-term trends.
Confidence is a Business Tool
When businesses have confidence in their decision-making processes, they are able to innovate quickly and achieve first-mover advantage in a market. They are also able to pivot more quicky when the data reveals that a strategy or tactical approach is not working. Confidence in decisions means that sufficient resources will be allocated to their execution – increasing the likelihood of success. It also means decision-making is more objective: data-driven confidence reduces the likelihood of such errors as confirmation bias.
Not all data is created equal, however. “Poor-quality data can result in poor decisions, so it’s critical that businesses cleanse, validate, and maintain their data regularly,” notes Digitlab founder Mike Saunders. “They also need to ensure that it’s easily accessible. And most critically, they need to invest in technology and processes to integrate their data sets into a single cohesive source that gives them a clear and realistic view of their operations.”
What’s the ROI?
When it comes to data confidence, the better question may rather be: what’s the cost of not investing: lost time, wasted investments, an unbalanced or irrelevant product offering, and poor customer retention.
There is no fixed formula for return on investment in data confidence, as it depends on many variables – including the investment in the resources required, and the nature of the business itself. However, ROI on data confidence is a function of several very predictable and in some instances measurable key drivers: the savings in reduced operating costs, the efficiencies gained through enhanced decision making, the opportunities it provides for increased revenues, and the savings achieved in both risk and compliance mitigation. And as AI is adopted and integrated into decision-making, quality input data also improves the ROI on these new technologies.
Striding with Confidence
Businesses that invested early in data confidence have generally outperformed their competitors. But it’s never too late, and as AI matures and data becomes increasingly available, these investments are more affordable. “An investment in data confidence is perhaps the most effective way to grow your business,” says Mike Saunders. “And the correct time to invest is now.”
Editors Notes:
Mike Saunders is the CEO of Digitlab, a consultancy helping companies grow by connecting data, strategy, and digital tools. A TEDx speaker and one of the Top Global Digital Marketing Experts, Mike’s approach bridges the gap between business goals and digital execution. His team has helped scale strategies for companies in tech, retail, and finance – always with a focus on human connection and measurable results.