Data this. Analytics that. You’re probably tired of hearing all these buzzwords. They’re just useless hype anyways, right?
Not so fast.
Taking advantage of data analytics can actually make all the difference between a failing insurance business and a thriving one. Here’s how data analytics can help you improve the performance of your business.
It can help you increase profitability
Insurance is traditionally a paper and ink business. But, today’s agent is outmatched by the consumer who has unlimited access to information on the Internet.
Meanwhile, what data is the agent using? Sadly, most of them aren’t using anything more sophisticated than the agency’s quoting software and email. Here’s where new digital platforms and data analytics come into play.
Analytics can tell you who owns what policy, how many policies they own, and where potential gaps in coverage are. And while insurance brokerages can keep track of policies in their current database system, they often can’t share that information with other offices, and sometimes it’s even difficult to share information with other colleagues in the same office.
Being able to see and share data allows agents to make smarter, more personalized recommendations to customers, cross sell products when appropriate, and stay on top of customer insurance needs.
For example, if a customer owns a homeowner’s insurance policy, and the policy lists the home as having a 2-car garage, the agent can guess that the homeowner may have two vehicles which need insuring.
Analytics can also point to customer profitability. A customer who has 2 or 3 policies with your brokerage is more valuable than a policyholder with just one. Knowing these kinds of details allows you to focus your attention where it makes the most sense. Maybe you can sell additional policies to the policyholder with just one policy. But, if several unsuccessful attempts have already been made, and a multi-policy customer just purchased a new car, then you’ll know it makes more sense to spend more time servicing the multi-policy customer.
It can help you increase productivity
On a scale of 1-10, how beneficial would it be for you to have data-driven insights about agent productivity?
You might not even be aware of how strongly these types of insights can positively impact the performance of your agents and your agency, as a whole. Imagine having a complete, 360-degree view of your entire business and knowing things like:
- How long it takes agents to fill out applications
- Where sticking points are (the points where mistakes are made and where paperwork seems to get stuck in the underwriting process)
- How much revenue the office is bringing in
- How each individual agent is performing compared to the office as a whole
If an agent is underperforming, it may indicate the need for more sales or process training. If an agent is outperforming others in the office, perhaps he/she needs more responsibility (or a promotion).
Data analytics can also be used to create a bit of friendly competition in the office. For example, sales totals, retention, and client engagement can be put on leaderboards and used to create monthly, quarterly, or annual sales contests. Can you even fathom the productivity increase that leveraging this type of data can help you achieve?
It can help you increase customer satisfaction and retention
One of greatest benefits of data analytics is increased customer satisfaction. Advanced data analytics can help agents predict when they should recommend new products to clients and when to just check in with them and hold off on selling.
Agents can skip the cold calling and pushy sales tactics and only talk to customers about insurance products that they might actually need. Customers feel like they are being offered tailored consultation services from an agent who actually understands and cares about them, as opposed to a sleazy salesman who just wants to push his own agenda.
In addition to this, data analytics helps speed up a variety of other processes, like policy issuing and communication after the sale. And, when policies are issued faster, claims are handled faster, agents and insurers understand their customers better, and communication is more transparent.
The result?
A happier customer who is more loyal and who may also act as a brand evangelist.
As you can see, data analytics is more than just another hyped up buzzword. And using it intelligently will not only make your job easier, it will have a real, tangible impact on the performance of your insurance business. While leveraging data can help you boost profitability, increase productivity and strengthen customer satisfaction, individually, these three components are all a part of the same foundation – the foundation that makes your business successful. Keeping them strong by reinforcing them with data will help you ensure that your business remains successful, for the long term.
