The insurance industry is built on the back of data. For years, insurance companies have judiciously collected information on people including where they live, statistics about claims. The leaders from the insurance industry say the more information you have, the better you are at pricing insurance products.
This tells how and why big data is important in today’s world. Insurers can leverage Big Data to increase sales. Moreover, they can use the data to differentiate themselves from their competitors, but with the right data in the context of your clients’ experience of your brand. However, it isn’t the volume of available data that will help you improve your business and its sustainability; it’s the quality of consumer analytics that you are using to measure the right thing.
Challenges in using big data
Many industries struggle with a few key challenges that Big Data brings. Like, it can be tricky to gather client from a number of sources and tools such as client relationship management software, contact centers, social media channels, etc. Then the question arouses around the accuracy of the available data. Lack of expertise in the analytical skills within the enterprise to leverage big data is another major concern.
How insurers unlock the value of big data?
Analytics is the bone of big data. The use of Big Data without accurate and good analytics is mostly a time-consuming and futile exercise. It’s hard to use analytics to integrate: consumer satisfaction and how that satisfaction influences behavior. For instance, you buy a product online but has a bad experience with it. Behavioral data simply tells that a purchase has been made, it does not indicate any future behavior, however. Like, will you return to that website and may speak negatively about that brand.
Integrating consumer satisfaction with the experience and behavioral data together, you get consumer experience analytics that gives you a predictive view. It allows a brand to manage the business going forward, rather than simply looking backward.
Use of consumer experience analytics
Apart from this, analytics can be used to measure consumer intelligence, and then to diagnostics to find areas of improvement. This will ultimately create a benchmark for success. Every consumer interaction is an opportunity to work on improvements and go beyond their expectations coupled with loyalty. Rather, disappoint them and push them back to your competitors. Use of consumer experience analytics can narrow down the interactions that leave them dissatisfied.
Overall, consumer experience analytics grants your insight into — the most strategic investments to improve customer experience. When you make the right decision to improve your consumer’s experience, you gain a competitive advantage.
It can be said from the analysis that the use of big data has a huge potential to improve your insurance offerings to consumers. Use of big data helps you increase competitive advantage and make insurance companies more successful in the long run. Moreover, how thoroughly big data will be analyzed within a business — still remains a question. Insurers have to concentrate on the data to use it more effectively in the future.