Analytics Expert Evan LaPointe Warns Against Sole Reliance on "Average" Metrics in Business

Evan LaPointe, a prominent figure in business analytics and founder of CORE Sciences, recently issued a stark warning against the pervasive use of "average" data points in business decision-making. In a recent social media post, LaPointe asserted that metrics such as "average conversion rates" or "average cart sizes" are "garbage data points," equating their use to "putting a nice dish into a blender and turning it into a smoothie." His critique highlights a critical flaw in how many businesses interpret performance data, urging a shift towards more nuanced analytical approaches.

LaPointe, known for co-founding Satellite (acquired by Adobe) and his extensive background in digital marketing attribution and product strategy, emphasizes that averages often obscure the valuable insights contained within diverse datasets. Relying solely on a single mean value can mask significant variations, outliers, and distinct customer segments that are crucial for informed strategic planning. This oversimplification can lead to misinterpretations and suboptimal business outcomes.

Experts in data analytics frequently echo LaPointe's sentiment, pointing out that averages can be highly misleading when data distributions are skewed or contain significant outliers. For instance, a few exceptionally high or low values can drastically alter an average, making it unrepresentative of the majority. This can conceal critical performance issues or opportunities within specific customer groups or operational processes.

Instead of generic averages, analytics professionals advocate for a deeper dive into data distributions, utilizing metrics such as median, mode, and percentile analysis. Understanding the spread and variance of data allows businesses to identify distinct customer behaviors, pinpoint bottlenecks, and tailor strategies more effectively. This granular approach provides a more accurate picture of performance and enables more precise interventions.

LaPointe's call to abandon the word "average" in business discussions underscores a broader movement towards sophisticated data interpretation. By moving beyond simplistic summaries, companies can unlock richer insights, foster data-driven cultures, and make decisions that truly reflect the complex realities of their operations and customer bases. His firm, CORE Sciences, focuses on helping organizations adopt human-centered design and advanced analytics for improved decision-making and growth.