Data is bewildering and difficult. Dealing with good data is vital for making great decisions – but it’s only useful once you’ve turned that data into insight. With four in ten businesses already struggling with the volume and complexity of their data, realising its true potential means taking advantage of the best tools and advice.
A business which knows its customers is one with the power to build positive relationships and deliver the kind of personalised service today’s customers expect – yet in this complex era of big data only 35% of organisations are able to draw any value from their data sets. Intelligent use of analytics can help you turn information into insight.
Knowing what you need to know makes the process of bringing in new customers smooth and hassle-free. Using a service like one of Experian’s Affordability Checks gives you access to insights derived from numerous wide-ranging data sets, potentially cutting the number of customers requiring a manual review by up to 30% and increasing acceptance rates by 10%.
Strong analytics turn a customer database into a rich pool of understanding – but why keep those insights to yourself? Supplying financial analytics directly to consumers can aid them in making better decisions for themselves and help you form a strong relationship built on sound advice. Tools like those available through Experian Consumer Advantage can also supply the data required to strengthen your own processes.
Running analytics on historical data can offer insights into a customer’s financial situation beyond their current status. Tracking historical behaviour helps enhance fraud detection and spot previous irregularities, reducing load on underwriters and helping you make more responsible decisions about new accounts.
Gaining a clear picture of your potential customers gives your organisation the chance to refine your message to match. Calling on a classification system like Experian’s Mosaic enables you to better understand consumer characteristics, using variables derived from a wide range of data sets and research studies to identify market segments as well as help personalise your communications.
If you really want to do more with analytics on consumer data, a tool like Experian’s Ascend Analytics on Demand can help draw insights out and improve your decision-making process. You’ll be able to access consumer bureau data and compare it with your own, then build the benchmarks and analyses you require to do better business without a massive internal IT infrastructure.
Analytics tools are not only good for generating insights about your organisation’s current state of play. Tap into the right data sets and predictive models and you can uncover opportunities and risks which may occur in the future. With the right analytics you’ll be able to make the perfect plan for your business, whichever way the financial market happens to swing.
Calculating expected credit loss (ECL) in line with IFRS 9 regulations is an exhausting, resource-intensive and potentially very costly task. With the help of economic forecasts from a tool like Experian’s IFRS 9 Credit Loss Insight solution you can reduce the strain on your organisation while demonstrating sophisticated ECL calculation to regulators – and the insights you gain may also help you plan for future economic shifts.
Savvy lending, based around an optimised credit limit strategy, creates accounts with high utilisation and lower delinquency – and finding good customers gives your business powerful marketing and account management opportunities. A team like Experian’s Ascend Intelligence Services can help you deploy and monitor credit scoring models. These incorporate machine learning techniques to glean fresh insights from wider data sets.
Deploying a new risk or marketing model is risky in itself, because a faulty model may lead your business in the wrong direction. Full stress testing and post-deployment monitoring is something a tool like Ascend Intelligence Services Pulse can provide, helping to validate the strength and resilience of your predictions as well as offering around-the-clock monitoring of your models’ health.
Ongoing developments in the financial market mean you’re often under time pressure to create stronger or more relevant analytics. Using a tool such as Ascend Intelligence Services Challenger you can quickly develop, test and deploy alternative models, recalibrate your existing analytics, and exploit logistic regression and machine learning techniques to find new avenues automatically.
Performing precise analytics brings B2B interactions into focus. With the right data and powerful tools, you can offer your organisation all the insights you need. That includes everything from potential prospects and marketing opportunities to deep dives to uncover exactly who you’re dealing with – and just what kind of footing your relationship is likely to stand on going forward.
If you want to discover the most accurate and up-to-date market insights, you need access to the widest variety of data, and the know-how to be able to work with it. A market intelligence platform like Experian MarketIQ can help, combining global mergers & acquisitions records, Companies House data and a host of business, financial and risk databases into a single online analytics portal.
B2B prospects do not typically generate themselves. Querying a comprehensive company database through a service like Experian BusinessView is a good way to identify potential targets. It can also refine your message to meet their expectations, and even find bespoke advice and analytics to uncover the details within the data that matter to you.
Making sense of data isn’t all about finding opportunity – proper analytics can also discover the risk hidden within. Applying a metric such as Experian’s Commercial Risk Scores gives you insight into the financial wellbeing of your customers. This enables you to predict failures, arrears and defaults as well as highlight the most at-risk elements of your existing portfolio.
Employing a tool like Commercial Risk Scores is not only a case of using analytics to find poorly-performing customers – you can also do the opposite. By sifting your data to discover the most financially robust customers, you can tailor your products, marketing campaigns and internal resources to push your business towards those who will offer you the highest potential return.
Below are some of the common questions around data analytics and our answers.
Data analytics is a way of processing and analysing vast quantities of data. Insights are the useful pieces of information generated by this process, which a business can use to make strategic decisions. The main difference between analytics and advanced analytics is the levels of information you’re able to analyse and gather from your data. Basic analytics looks at your own business’ data in a simple format. Advanced analytics uses a wide variety of tools, techniques and datasets to provide more in-depth insights and reporting. Advanced analytics is able to look at Big Data and make more complicated and accurate decisions than basic business analytics.
Data is the raw information a business or organisation holds, often for the purposes of answering questions or understanding a situation. Insight is the useful information gleaned from analysing it to find patterns, trends and associations. Analytics is the statistical examination of data to reveal patterns, trends and correlations that can be used to inform business decisions.
Data analytics is used across the private and public sector and in businesses large and small, for a wide variety of reasons. It can be used to help organisations make informed strategic decisions, using facts and not instinct or guesswork.
There are three broad types of data analytics:
Data analytics is important because it helps organisations make better business decisions, understand their customers and suppliers better, and plan for the future. Our research shows that 77% of organisations plan to significantly increase their investment in advanced analytics and big data technology.
Data analytics and insights help businesses understand their customers and their behaviour, so they can make informed decisions about how, when and what products and services to sell to them. Your business can identify opportunities, mitigate risk and fraud, deliver the right products to the right people, improve customer experience and provide a personalised service.