Many of us can relate to the frustration of searching for hours for the information needed to validate a potential solution to a problem. This search can feel like playing the claw machine at the local arcade — trying to win that special stuffed animal only to walk away irritated and empty-handed. Gathering useful data should not be this big a challenge. However, many financial professionals and their institutions can become both overwhelmed by the amount of data and confused by the complexity of it, choosing to ignore the data rather than use it to their advantage. This is a missed opportunity and potentially a huge financial risk.
We’ve broken out five ways that you can use data to your advantage in your financial practice.
Tip #1: Track and record as much information as possible
Using data doesn’t have to be a complex algorithm of hundreds of data points. It could, for example, be how many recipients responded to an email.
Tip #2: Categorize and organize
It’s difficult to use any information that is messy and hard to understand. Look at your available data points and see how they might make sense if grouped together. This could be by client profile and needs, products they’ve purchased, or how often you work with them.
Tip #3: Review your data
Look at your available data for new business opportunities. Taking the time to review the information at hand can shine a light on an opportunity.
Tip #4: Lookout for new data points
Be on the lookout for new data points. This can be as simple as asking clients to complete an online survey or answer a few questions. The request doesn’t have to be a burden on your clients and can be enlightening for you.
Tip #5: Minimize cybersecurity risks
Keep your data secure. This could potentially be your client’s information, after all, and a tool you are using to grow your business.
If businesses spent more time precisely identifying the most relevant information needed to support their objectives and understanding how to use and apply it, the data would, ideally, provide actionable operational insights that drive better results. This would enable businesses to make better and more informed decisions, such as predicting future trends, optimizing current operational efforts, developing business strategies, or creating a new product or service. High-quality data is critical to organizations for analyzing and using to improve their operations.
If you are interested in discussing any of these topics in more detail, contact Iron Point today!
Article written by Nationwide Financial.