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10 Questions to Ask When Choosing Data Analytics Software

Invest in the right data analytics technology to tap into the full potential of your agency's data.
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10 questions to ask when choosing data analytics software

The insurance industry is one of the world's most data-driven sectors and in our evolving digital world, information is like currency. This currency holds immense value for agencies, helping with decision-making, creating competitive advantages and driving growth. 

Only the agencies that are converting data into useful insights and utilizing these in their business decisions will grow. This is where data analytics software can be a pivotal tool for your agency. 

Data analytics software turns the massive amount of unprocessed data in your agency management system (AMS) and rating engine into valuable insights you can use to understand your agency's strengths and weaknesses. It analyzes your data to produce interactive dashboards that give you clear visibility into your agency's metrics and performance. 

To become that flourishing agency, you need to invest in the right data analytics technology to tap into the full potential of your agency's data. 

But how do you find the best data analytics software for your business? Here are 10 questions you need to ask: 

1) Can you collect data from both your AMS and your rating engine? Your AMS and rating engine house excellent sources of data, but if you aren't actively collecting that data, you're letting that untapped information sit there without purpose. That's why it's critical to have software that collects and generates insights in one place from both your rating engine and management system. 

2) Can the software help you measure agency health? The insights that data analytics software provides can give you visibility into your agency's health. The software should help you track key agency metrics such as new policies, canceled policies and total premiums so that you can easily see how your business is progressing and bring attention to specific areas. 

3) Can your analytics tool leverage models to bring you insights? It's not enough to just have the data. You need data analytics technology that can sort through the information and create visuals that can help tell the story of your data—in a way that everyone can understand. The right software will leverage comprehensible data models to present information you can use to improve your business. 

4) Does the software show how your business's metrics compare with other agencies? To get an accurate view of your business's performance, it's essential to see how you're stacking up next to similar agencies. A good data analytics software provides a detailed comparison of your agency metrics with others through benchmarking capabilities that give you critical insights into your performance, market standing and areas that need improvement. 

5) Does the software find prospects through your book of business and quote history? Data doesn't just tell you how your agency is doing—it can also help you succeed by identifying revenue-generating opportunities. The right software can get the most out of your agency data by identifying client patterns and trends to locate potential prospects through your quote history and book of business. 

6) Can you generate cross-selling opportunities from your data insights? You shouldn't have to waste time manually searching for cross-selling opportunities. Your data analytics software should quickly sift through your agency data and create detailed customer profiles to identify cross-selling possibilities, so you never miss a potential sale. 

7) Does your software offer insights into how to best approach sales? Data analytics software can give you valuable information about when to approach potential clients, recommend relevant products or services to offer them and help you close deals more easily. Investing in data analytics technology gives you more potential to make a sale than only using conventional methods of selling. 

8) Are data insights automatically added to your sales funnel? Both data and analytics play a crucial role in optimizing your sales funnel—your data analytics software should be able to identify opportunities and automatically add them to your sales pipeline. This technology streamlines workflow and ensures that your potential sales don't get forgotten or slip through the cracks. 

9) Are you able to easily track your goals? Every agency is looking for a way to achieve its goals more quickly and efficiently. You'll need to be able to track the rate of your progress. Data analytics software can provide visibility into your business that indicates you're reaching your desired results. And if a strategy isn't working, the technology can help you more easily and quickly pivot your direction. 

10) Can you personalize reports to focus on specific areas of performance? Reporting is crucial for your agency's success, but sometimes a standard report isn't enough. The right data analytics software can compare and filter specific areas of operations that aren't shown in a standard report and give you access to real-time data on employee performance trends. 

There are many data technology options to choose from and asking the right questions will help you find the best data analytics technology your agency needs to streamline operations, increase profitability and remain a viable competitor now and in the years ahead. 

Vijay Rengarajan is the director of product management at EZLynx

Friday, March 8, 2024
Agency Operations & Best Practices