By: Joe Polizzano, Principal
When it comes to the insurance industry, many underlying strategies help propel a company forward—claims, marketing, sales, customer experience, financial, etc. While each department uses data for its different needs, companies should consider an overarching data strategy—and pulling multiple data sources—to successfully analyze and glean information to make informed business decisions and improve the customer experience.
If it’s been a while since you’ve evaluated your data strategy’s health—or perhaps you need to create a data strategy from inception—I’ve outlined some top questions to ask as we look ahead to 2020.
1. Does my company have a data strategy?
If you’re stumped by this question, you’re not alone. In recent years, insurance organizations have elected to add a Chief Data Officer or, at the very least, a data management program, but the numbers are slim. Without a centralized function to organize, govern, analyze, and use data in a manner most effective for the business, it can be difficult to have an effective business strategy, let alone a data strategy. Having a data strategy is how insurers tie business value to data management activities. By driving a data governance program based on business value, an organization can ensure data quality within its business areas and become an enabler of new business opportunities.
2. Do I have the right data to inform my strategic business goals?
It’s important to take a unique view on data strategy and look at it through a lens that goes over business strategy. For instance, if the goal is to sell more insurance policies, leaders should look at data that informs them answers to questions like: how am I selling insurance today? Are there certain marketing tactics that increase this engagement? What sales tactics help meet this goal? By analyzing the data behind these questions, leaders can gather repeatable or create new tactics to help achieve their desired business outcome of selling more insurance.
3. How am I connecting data to business outcomes?
Data strategies are only successful when they establish a business linkage. Meaning, if the data strategy doesn’t always tie back to a business outcome, it’s easy to get misdirected. Review the kinds of data management activities you are able to provide to achieve the business strategy and think: “I am doing this because [insert desired business outcome].” To do this successfully, create a roadmap of projects along with the capabilities and tooling underneath to enable the business strategy to which it ties back and revisit it regularly to remain aligned.
While creating or tweaking an effective, all-encompassing data strategy can feel daunting, working backward—with business outcomes in mind—will help ensure a successful data-driven business strategy.
Need another set of eyes on your data strategy or need to craft one? Consult with a team of experts. Let’s get started.
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