How Can Data Analytics Help Insurance Agents Grow Their Book?

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The amount of data available today is increasing at a rapid pace. This means new and exciting opportunities for insurance agencies like yours to leverage data; gather smart insights in real-time, make smarter decisions, and be more productive. With data analysis and application of the findings, your agency will have a better handle on growing its book.

What is Data Analytics?

Data analytics is the use of a company’s current data to obtain answers for important questions and draw conclusions based on the data that is gathered. This assortment of applications, technologies, and business processes are examined, analyzed, and studied to provide greater insight into the current business for faster, more informed decision making.

There are four types of Data Analytics. They are all independent; however, they all work together to help improve the performance of an agency. All levels take the existing data agencies have: client lists, policies in force, past performing campaigns and historical data. Then, crunch the numbers and find where the agency is prosperous and where it has deficiencies.

Data Analytics is an effective process that your agency can use to evaluate and improve workflows within your agency continuously. using analytics you can improve client experience, retain clients, and sell more policies.

How Can Your Insurance Agency benefit from Data Analytics?

Data determines which processes your independent insurance agency should improve, and data can assist in making decisions. Data Analytics can help your agency to:

Focus on Opportunity Clients

These are the clients that are either more likely to purchase additional policies or are under-insured. The analysis can reveal needs that a client may be unaware of, or perhaps they have not been given an opportunity to review or purchase a particular product or service. Targeting these clients saves agents time and increases their productivity.

Monitor Trends 

As an agency, you are well aware of insurance trends. You can see what policies are being purchased in what areas. This can be a heads up on what you can offer new and existing clients within a marketing campaign. News headlines and market trends can also be indicative of what policies a client may need and want to purchase.

Retain Clients

With each renewal notice, clients may consider looking for a better price. They may begin shopping with another agency when price increases, which will increase your churn rate. If you know in advance about premium increases and how much, you can preempt client reaction by reaching out to them before the notice is sent out. Managing your client relationships by early notice or providing a quote on a different policy can have an impact on client happiness, which can be measured through the Net Promoter Score.

Gather smart insights to make better decisions

Other key metrics like the cost associated with acquiring a customer and the customer lifetime value can guide agents to smart spending. Marketing can be expensive; understanding what turns a client’s head can aid agencies in focusing on the methods that are working and divert funds from what is not working. The important part is being agile enough to follow through on what is projected and improve your performance.

Discover cross-selling opportunities

Cross-selling is about offering a client a policy that they need, will soon need or might have with another agency. Data analysis will reflect these visible gaps in coverage. This will provide you a great opportunity to tailor solutions that give consumers the expert, personalized experience they expect today.

Through it all, it is always beneficial to know your clients. They are the key to your future success. Happy clients will be eager to refer you to friends, family, and colleagues. Referrals will always be the lifeline to an agency. Using Data Analytics will help you maintain client connection and consistently be on top of opportunities for growth through them. With deeper insight into customers and their behavioral patterns, it becomes a natural process to cross-sell, up-sell and serve clients in a more meaningful way.

The Final Word

Data Analytics can help you identify the positive things you are doing; and, shine a light on the negatives that hold you back. It guides you on the course of determining the proper actions to take to get your agency back on track. Through having useful data, your independent insurance agency can keep clients happy, understand how to gain new clients. And, continue to grow your book of business.

Agentero powers independent insurance agencies like yours with technology to digitally serve their clients and optimize their cross-selling efforts. Explore how we can help you to:

  • Deepen relationships with clients
  • Generate more revenue per client
  • Automate clients’ servicing

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