Why is data important to your business? The more you know about your customers, the more you know about your agency. And the more you know about what works, the more successful you’ll be. ITC CEO Laird Rixford explains.
- Insurance Agents: Time to Get Serious About Cybersecurity
- The Importance of Data Organization
- Let’s Talk About Your Data
Data is important to your business. Why? Because you can’t improve what you don’t measure.
It doesn’t matter how large or small you are. You have data available to you that when you understand it can have an impact on your agency.
Data can tell you how you’re doing and where you currently are. That helps you better plan where you want to go and how you’re going to get there.
Consider how other industries are using data to better understand their customers. Think about how Amazon uses your order and search histories to recommend products you’re more likely to buy. Or, how Netflix does the same thing with what you watch.
The more you know about your customers. The more you know about your agency. The more you know about what works. The more successful you’ll be.
There are all kinds of data you can collect.
You can track data on your customers. Like emails, birthdates, locations, current carrier, lead source.
You can track data on your agency performance. Like revenue by line of business, carrier, or location. Then there’s closing ratios. Loss ratios. Retention. New business written.
You can also track by producer performance. Like quotes made or bound. Number of calls made or taken. Quality of data entered.
If you don’t know how to collect this data, there is good news. You have technology in your agency that can give you all this data and more. You just need to pull it out and review it.
Your agency management system data can tell you about the current state of your agency. You can also learn about your agency’s sales and service activities. You can pull a report to see how much new business you wrote last month and then compare it to the same time last year. You can see cancellations and expiring policies. Monitor your agency fees and reconcile your commissions. You can also set certain fields as required so your producers have to enter data into them.
The data in your comparative rater can give you insight into your sales process. Where are your leads coming from? How many quotes does your agency do in a day or month? How many of those quotes do you bind? How did the prospect contact you? Like the management system, you can make certain fields required.
Your insurance agency website data can tell you about how your marketing is working. How did visitors find your website? How much time did they spend on your website? What pages did they visit? How many visitors converted on a quote form?
Don’t forget about your phone system. Use your phone system to track number of outbound and inbound calls. How much time does each producer spend on the phone per day? How much time per call?
The critical part of all these systems… You need to train your employees to collect data.
Setting fields as required only does so much. If an employee chooses a value at random, that data still doesn’t help you.
Educate and train your employees to help. Share with them why you need this data and how it’s going to help them and the agency. Make sure they know what type of data you need, what questions to ask and where to put that data when they have it.
Then start tracking and hold them accountable if they’re not entering data or they’re entering bad data.
When you use your available data, you can uncover opportunities to round out accounts. You’ll identify customers of one line of business that you can then market and sell another line of business to.
It’s cheaper and easier to market to existing customers because they already know and trust you. If you want to increase revenue, start with the reports that will show you cross selling opportunities.
Data is a critical part of any plan to grow. You have so much data available to you in the systems you’re already using.
So, take a look at the reports in your comparative rater and agency management system. Check out your Google Analytics. Ask questions about the data and what is affecting those numbers. Then make small changes and watch to see if they change.
Data is a game changer for any agency.