2 Ways the Little Insurance Business Can Benefit from Big Data
December 5, 2016
From small startups to large corporations, big data matters. With managed cloud services, insights and meanings can be uncovered to open new pathways to success for businesses.
Big data took its sweet time proving it had value to offer anyone. For years, only the largest enterprises were able to get an ROI on big data and analytics, and even then it took a year or two of work and many millions of dollars in investments. Big data experts are as rare as the woolly mammoth, which means their services are costly and are well out of reach for most small businesses, including the insurance business.
But big data has come a long way, and fortunately, now even small businesses can leverage big data for their benefit. With affordable cloud environments, storing big data isn’t that costly at all. There are also many analytical platforms and tools available, as well as “ready made” data analytics that you can get “off the shelf”.
What could your small insurance business possibly do with big data? Here are just a few of the ways you can capitalize on it.
1. Use Data to Understand Your Customers
What do consumers and businesses in your market want from their insurance products? Every area is different. Some areas are rich with entrepreneurs, while others are overflowing with growing families, and still more are rich with luxury vehicles and homes full of jewelry and fine art. Yes, much of this you already know about your customers, but some of it might surprise you.
Knowing your customers isn’t just about offering the right insurance products, it’s also about knowing what advertising messages you can best reach them with. Don’t assume that your demographic groups are homogeneous, either. Not all Baby Boomers are wealthy; not all young folks are Hipsters; and not everyone in the Rust Belt is a former manufacturing worker. Knowing your demographics through big data allows you to identify and reach niche markets that might otherwise be unknown to you.
Big data is just one of the many services you can now get from cloud service providers. You can learn about the other cloud products and services available to your small insurance business when you download our cloud report.
2. Use Data to Improve Your Hiring Processes
Often, employers make erroneous assumptions about their employees and hiring procedures. For example, you might be trying to hire all the top graduates from the local colleges and universities, not realizing that great grades don’t necessarily translate into excellent workers. A ‘C’ student who worked their way through school while raising a baby is likely to have a superior work ethic, more motivation to succeed, and fewer excuses about not coming to work or not working hard when they get there.
Nuggets like these can be pure gold when it comes time to fill empty seats around the office, or to add new seats when business booms. Big data can help you understand your current workforce (do they prefer more vacation days or fatter paychecks), and find new workers who are ideally suited to your company culture.
What other cloud products and services does your growing insurance biz need?
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