Many companies have huge amounts of data regarding their target market, yet they do not know how to utilise it efficiently to gain customers, said one insurance leader.
Speaking at Smart Data 2017 conference in Singapore, Yuhui Yao, vice-president and group head of customer analytics and behavioural insights at FWD Singapore, said that firms must identify consumers’ “sweet spots” using smart data.
Smart data refers to information obtained through “reverse engineering”, or transforming big data into small data, reports Marketing Magazine.
Yao quoted Jack Ma, saying that while in the past, the focus was on information technology, (IT), the present is now “DT time”, referring to data technology. Companies must create data infrastructure such as a data lake and data warehouse to collect data from different sources, whether structured or unstructured data.
Having worked at several large insurance companies in China before joining FWD, Yao said that he looks at three main factors in finding the “sweet spot” in targeting customers. These are: insurance needs, money, and relationships.
Asking questions about customers’ life stages, such as marital status and recent birth of a child, can be used to determine their insurance needs. Meanwhile, insurance marketers can gauge a customers’ financial capacity using various questions, such as the make and model of their car.
The third factor, relationship, is very important, said Yao.
“We have to look for data from so many different angles such as campaign response, how many products they bought from us, contact tenure, number of calls, latest contact time and even the talking time,” Yao said.
The above data helps the insurer gauge the relationship it has with the consumer. While many brands face challenges when it comes to customer loyalty, talking to customers and demonstrating care is very helpful, he said.
“How we can do data enrichment, be it internally or externally, to come up with that sweet spot?” asked Yao. “This sweet spot essentially points to the most effective customer acquisition for your brand. It all boils down to how you use that data, which is essentially your most valuable asset.”
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