Averages hide the extremes

Averages hide the extremes

I can't remember where I first heard it, but "averages hide the extremes" can be a really useful guide when thinking about how you manage data. Here's a nice illustration from one of my clients:

As they looked at their event registration they saw an average of 100 registrations per month over the course of six months. But a closer look showed that the first month of registration and the last month of registration was where the bulk of those registrations came in. In fact, if they removed the first and last month, the average number of registrations per month was actually more like 50.

The same also happens frequently with membership joins and renewals, certification, and other types of sales.

What this means is averages can be misleading. Basing a decision (e.g., staffing, technology, business processes) on the average number of transactions may lead to some choices that won't serve you well. So be sure to dig deeper when discussing averages.

And on a related note: Using the extremes (rather than the averages) can also be misleading because "extremes" is just another word for exceptions.

Wes's Wednesday Wisdom Archives

Evolution, not revolution

May 3, 2023

Evolution, not revolution I don’t recall where I first heard it many decades ago, but […]

The power of the users’ group

April 26, 2023

The power of the users’ group Recently in an online users group forum for an […]

Who is your data evangelist?

April 19, 2023

Who is your data evangelist? I was recently talking with a client of mine about […]

Who is your data evangelist?

April 19, 2023

Who is your data evangelist? I was recently talking with a client of mine about […]

Ratio of Data to Errors

April 12, 2023

Ratio of Data to Errors One of the elements of a good data governance plan […]

Back to basics

April 5, 2023

Back to basics Over the past couple of years I’ve noticed that some AMS vendors […]

Your people matter

March 29, 2023

Your people matter I’ve written many times about how people, process, and technology have to […]

We remember moments…

March 22, 2023

We remember moments… “We do not remember days, we remember moments.” – Cesare Pavese Another […]

Acknowledging problems is part of managing expectations

March 15, 2023

Acknowledging problems is part of managing expectations Research was done some time ago that suggested […]

Need data? Consider third-party sources

March 8, 2023

Need data? Consider third-party sources I always tell my clients, only collect data that you’re […]

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top