How would you build the business case for a new analytics tool your team needs?
Model answer
Model answerAnalytics tools are an investment in decision quality. I'd quantify the cost of current bad decisions: how many experiments ran too long because we couldn't read results fast enough? How many product decisions were made without data? Then I'd estimate the value of faster, higher-confidence decisions — even one avoided misstep per quarter likely pays for the tool. I'd pair this with a comparison of build vs buy.
Framework · ROI
- RRevenue at risk
What decisions have been delayed or made blind due to data gaps? Estimate the cost - OOpportunity unlocked
What experiments or analyses become possible with this tool? Make it concrete - IImplementation cost
Setup time, training, integration effort — be realistic, not optimistic
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