What's the difference between accuracy and precision?

Accuracy and precision are often used interchangeably in normal life. But as terms of measurement, they’re defined differently. Just because a measurement is accurate does not mean it’s precise, and vice versa. 

Both accuracy and precision are critical aspects of producing high-level work, but what are they? Let’s take a look at the difference and how—and when—you should use each one.

What is the difference between accuracy and precision?

Accuracy and precision are both forms of measurement that define how close you are to hitting a target or achieving a goal. The term accuracy evaluates how close you are to the true value of the measurement, while precision shows how close the measured values are to one another.

Accuracy vs. precision: the bullseye example

The bullseye example is the most common way to show the difference between accuracy and precision. Think of throwing darts at a bullseye. The goal is to be both accurate and precise. In other words, to hit the bullseye as frequently as possible. If you’re simply accurate, that means you’re throwing darts that are landing close to the bullseye, but you’re not hitting the bullseye every time. If you’re simply precise, that means your darts are landing close to one another, but not necessarily close to the bullseye. But when you’re accurate and precise, your darts will land in the bullseye every time—the best case scenario.

What is accuracy?

Accuracy measures how close the result is to the actual value you were trying to achieve. In other words, it’s how closely you hit what you’re aiming for. Whether that’s a strategic goal or a personal win, high accuracy is when you land directly on your target value. Low accuracy is when you’re way off the mark. You can determine accuracy after a single event, although repeatability will be critical to determining if this can be maintained as a long-term success.

Let’s look at an example. You’ve set a KPI to reduce your site’s bounce rate by 12% in this upcoming fiscal year. If your accurate measurement shows that you hit your accepted value—exactly 12% by the end of your fiscal year—you’ve achieved 100% accuracy in setting and hitting your target KPI.

What is precision?

Precision measures how close your results are to one another. While accuracy can be used in one instance, precision will be measured over time. This is because precision requires repeatability to determine the degree of closeness between each set of measurements. High precision is when your results are similar to each other, while low precision is when they’re all over the map. Measuring precision is helpful in two scenarios:

• When you’re trying to avoid making the same mistake

• When you’re achieving successful results and want to establish a process for reproducibility

Using the above example, let’s say all your pages' bounce rates were reduced by the same percentage. So every page on your site had a bounce rate move down by the same number, whether that’s 6% or 20%. This is highly precise, even though it’s not accurate.

How do you track and measure accuracy and precision?

To know if you are accurate or precise, you’ll need to track and measure your results. Accuracy and precision are measured differently:

• Accuracy measurement: How your result compares to the target value. The closer you are, the more accurate you are. To determine accuracy, you need to have clearly defined goals or success metrics you’re trying to reach.

• Precision measurement: How close measurements are to each other. To review for precision, you’ll need to develop a tracking system that shows how multiple results or data points compare to each other over time.

When it comes to a measurement system, you’ll want something that’s easy to manage and accurate. A project management software with universal reporting can help you track—and react to—results in real-time. For example, if you notice consistent results (precise) moving away from your target goal (inaccurate), you may have a systematic error that needs correction.

Examples of accuracy and precision

Just about everything you read about accuracy and precision will give you the bullseye example used above. But let’s look at some more practical examples of how you would use accuracy and precision in your day-to-day life.

Example 1: Building a shared database

Here’s the scenario: your team has felt scattered recently, so you decide to create a shared database where everyone has access to data and reporting in one, centralized space. You hope that if they’re connected to all information in real-time, it will boost collaboration long-term. 

Here are the four scenarios for how this would go, depending on how accurate and precise your database is:

1. Accurate: If you’re highly accurate but not as precise, you’ll build the database, but you might only see collaboration increase in one or two projects.

2. Precise: If you’re only precise, you might add many similar items to the database, but they might not be the ones your team needs to collaborate.

3. Neither: You try to build a database but you’re the only one who can access it, which doesn’t encourage collaboration.

4. Both accurate and precise: You build a shared database with a multitude of projects that are easy to collaborate on as a team. The system you use is repeatable, so you can continue to collaborate on new projects as they come up.

Example 2: Improve response rate

Your team sets a goal to respond to customer tickets within 48 hours. 

The scenarios could be:

1. Accurate: Some tickets are responded to within 48 hours, but some aren't.

2. Precise: All tickets are responded to in the same amount of time, but not 48 hours.

3. Accurate and precise: All tickets are responded to within 48 hours.

4. Neither: No improvement or ticket times get slower.

Example 3: Dressing for work

Let’s look at a simpler, day-to-day example. How do you get dressed for work?

To start, you check the weather report the night before so you can lay out clothes. It’s supposed to rain so you decide to wear waterproof boots and a raincoat, plus bring an umbrella. If it rains, boom—that’s your validation. Your outfit was accurate. If it doesn’t rain, the outfit is still precise—these items are all related to each other—but they’re not accurate. Instead, you’re sweating in your too-heavy clothes and lugging around an unnecessary umbrella.

Accuracy vs precision: Which is more important?

So which one do you need more of, accuracy or precision? Like many things in project management, the answer is, “it depends.” 

To execute strategic initiatives, you’ll want both. But if you have limited resources or time, you might not be able to guarantee that you’ll have accurate and precise results all the time. In this case, focus on accuracy of a measurement first. But keep in mind that precision is important for follow up. You’ll want to keep experimenting with varying techniques to refine your results, becoming more precise as you test.

When accuracy is more important

Consider a medical diagnosis. A doctor needs to accurately identify a patient's condition to provide the correct treatment. In this case, being precise but inaccurate could lead to consistently misdiagnosing patients, potentially with serious consequences. High accuracy is paramount when the actual value or right answer is critical. The degree of closeness to the true value can literally be a matter of life and death in medical scenarios.

Another example is GPS navigation. An accurately calibrated GPS will guide you to the correct destination, even if there's some variation in the exact route taken each time. Here, reaching the true value or accepted value (the correct location) matters more than precise directions.

When precision is more important

Precision becomes more critical in contexts where consistency and repeatability are key. In manufacturing, high precision often takes center stage. For instance, when producing smartphone components, each part must fit perfectly with the others. High precision ensures that every piece is nearly identical, allowing for smooth assembly and consistent product quality.

While accuracy is still important (the parts need to be the right size overall), consistency between parts—their precision—is often more critical for the final product's functionality. In this case, a set of measurements with low accuracy but high precision might be preferable to high accuracy with low precision.

Similarly, in competitive sports like darts, precision can be more valuable than accuracy in certain contexts. A darts player who consistently hits the same spot on the dartboard, even if it's not the bullseye, may be able to adjust their aim more effectively than one who hits the bullseye occasionally but is inconsistent overall.

Accuracy vs precision: How to measure and improve both

Understanding the difference between accuracy and precision enables informed decision-making and process optimization. Here's how companies can measure and enhance both precision and accuracy.

4 techniques for improving accuracy

To ensure your measurements and results are as close to the real value as possible, try these proven strategies.

1. Data cleaning and validation

Implement rigorous data cleaning processes to ensure measurement accuracy. Financial analysts might cross-reference multiple data sources to validate revenue figures, ensuring the closeness of a measured value to actual earnings.

2. Bias reduction

Employ methods to reduce bias in market research, improving consumer insight and accuracy. This might involve using diverse sampling techniques for a more accurate representation of the target market.

3. Calibration

Regularly calibrate sales forecasting models against historical data, treating past performance as constants to improve future predictions. This process aligns forecasts more closely with actual outcomes.

4. Error analysis

To find the origins of inaccuracies in financial models, do a complete systemic error analysis. This involves scrutinizing assumptions and inputs, much like answering science questions in research.

4 techniques for improving precision

Achieving consistent and reproducible results is key to precision. Here are some effective techniques to enhance precision in your work.

1. Standardized operating procedures

Develop standardized operating procedures to ensure consistency across business processes. This is particularly important in manufacturing, where repeatable processes are essential.

2. Continuous monitoring and adjustment

Implement systems for continuous monitoring and adjustment of business processes. This could involve using control charts to track variability in production quality over a time period.

3. Track key performance indicators (KPIs)

Track detailed KPIs to detect subtle performance shifts. Measure sales velocity, customer acquisition cost, and lifetime value to two decimal places. This precision reveals trend changes in customer behavior and market dynamics.

Similarly, refine employee productivity metrics to include quality and collaboration scores. These granular KPIs offer a more accurate view of organizational health, uncovering improvement areas that broader metrics miss.

4. Repeated sampling in quality control

Perform repeated sampling in quality control processes over short time periods to assess and improve consistency. This technique is often used in manufacturing to ensure products meet precise specifications.

Tools and technologies for measurement

Leverage advanced tools to achieve high levels of both accuracy and precision in measurements and decision-making processes. Here are some of the key tools and technologies companies use.

1. Business intelligence dashboards

Utilize BI dashboards for precise data visualization and trend analysis. These tools often feature quadrant analyses, where the top left might represent high-performing areas and the bottom left areas needing improvement.

2. Predictive analytics software

Employ predictive analytics for high-precision forecasting and risk assessment. These measurement instruments often use machine learning algorithms to process vast amounts of data and identify patterns.

3. Customer relationship management (CRM) systems

Use CRM systems for tracking customer interactions and segmenting the customer base. These systems help businesses maintain detailed records of every customer touchpoint.

4. Enterprise resource planning (ERP) systems

Implement ERP systems for tracking business resources and financial reporting. These comprehensive systems ensure that all parts of a business work with the same data.

Accuracy vs precision: Real-life business applications

Striking the right balance between accuracy and precision is important across numerous business scenarios. Understanding this interplay can significantly improve decision-making, quality control, and operational efficiency in your measurement process.

In market research and product development

The success of products and services relies on balancing accuracy and precision in market research and product development. Let's explore the methods to achieve this balance.

Consumer preference analysis

Balance survey design precision with accuracy in representing consumer preferences. Researchers must craft questions that capture consumer sentiment, often using Likert scales where the zeros (neutral responses) are as important as the extremes.

Product testing and iteration

Ensure high accuracy in identifying product issues while maintaining precision in improvement iterations. Product teams might use A/B testing to gauge user preferences and make adjustments to features.

Pricing strategy optimization

Use market data and pricing models to optimize product pricing. This might involve analyzing price elasticity with significant figures to determine the most profitable price points.

In operations and supply chain management

Operations and supply chain management require attention to both accuracy and precision. Here are some strategies to optimize both.

Inventory management

Use inventory management systems that provide stock levels and demand forecasting. This might involve RFID technology for real-time tracking combined with AI for prediction of future needs.

Logistics optimization

Implement logistics software that tracks shipments and optimizes delivery routes. This might involve GPS tracking for location data and algorithms that calculate efficient routes.

Lean manufacturing

Implement lean manufacturing principles that identify waste and measure process improvements. This often involves value stream mapping to visualize the production process and target areas for enhancement.

Precisely accurate, or accurately precise?

At the end of the day, you’ll need both accuracy and precision to complete your best work. You might develop the skills for precision over time and keep missing your target, until one day it falls into place. Suddenly, your precision is landing you on your target goal over and over again. That’s how you elevate your job, your company, and your work into a much higher level.

To reduce errors and boost productivity, it might be time to get some help. Project management tools track, report, and measure your results for you. We’ll help you streamline your work for more accurate and precise results.