Data Value Matrix

The Data Value Matrix is a 2x2 matrix that helps businesses identify the value of data and how it can be used to drive growth and profitability.

At a very high level, the Data Value Matrix is used in the context of business, marketing, finance.

Data Value Matrix quadrant descriptions, including examples
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What is the Data Value Matrix?

A visual explanation is shown in the image above. The Data Value Matrix can be described as a matrix with the following quadrants:

  1. High Value, Low Cost (HVLC): Data that has a high value to the business but is relatively low cost to acquire or maintain. Examples include customer feedback, market research, and customer segmentation data.
  2. High Value, High Cost (HVHC): Data that has a high value to the business but is relatively high cost to acquire or maintain. Examples include financial data, customer transaction data, and customer loyalty data.
  3. Low Value, Low Cost (LVLC): Data that has a low value to the business but is relatively low cost to acquire or maintain. Examples include web traffic data and social media data.
  4. Low Value, High Cost (LVHC): Data that has a low value to the business but is relatively high cost to acquire or maintain. Examples include market forecasting data and predictive analytics data.

What is the purpose of the Data Value Matrix?

The Data Value Matrix is a 2x2 matrix that helps businesses identify the value of data and how it can be used to drive growth and profitability. The matrix is divided into four quadrants, each representing a different type of data value. The quadrants are:

  • High Value, Low Cost (HVLC)
  • High Value, High Cost (HVHC)
  • Low Value, Low Cost (LVLC)
  • Low Value, High Cost (LVHC)

The HVLC quadrant represents data that has a high value to the business but is relatively low cost to acquire or maintain. Examples of data in this quadrant include customer feedback, market research, and customer segmentation data. The HVHC quadrant represents data that has a high value to the business but is relatively high cost to acquire or maintain. Examples of data in this quadrant include financial data, customer transaction data, and customer loyalty data. The LVLC quadrant represents data that has a low value to the business but is relatively low cost to acquire or maintain. Examples of data in this quadrant include web traffic data and social media data. Finally, the LVHC quadrant represents data that has a low value to the business but is relatively high cost to acquire or maintain. Examples of data in this quadrant include market forecasting data and predictive analytics data.

By using the Data Value Matrix, businesses can identify the types of data that are most valuable to them and prioritize their data acquisition and maintenance efforts accordingly.


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What templates are related to Data Value Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Data Value Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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