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1. Don't put the cart before the horse

Start with a strategy.

A surprising number of brokers race to consolidate agency management systems, build data warehouses and analytical capabilities without a strategy for leveraging consolidated and enhanced data, analytics, and related capabilities.

Often, the greater focus is on data mining and internal efficiencies, without adequately considering how these investments will be used by the front-line team to drive new and expanded sales and improved retention. 

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2. Recognize strategy starts at the top

Don't delegate this to your information technology team. 

While the IT team should be involved at all stages, strategy development must be driven by the C-suite with the participation of senior sales, account management leaders and their team members.

All should be engaged in every element of the strategy — from identifying data requirements to structuring the roll-out and sustaining its implementation.

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3. Beware of following the leader

For most brokers and agents, it's a flawed strategy.

Be smart in approaching your technology investments. Start by determining how you plan to use enhanced data visibility and tools across the spectrum of your operations, but with a focus on how technology will help drive sales and retention results — the life-blood of any broker or agency. 

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4. Recognize that your data has limitations

Regional or local brokers and agencies may be victim of data bias; data they collect are restricted to their own geography/locations, client base, and experience rather than market-wide.

Yet, clients often want broader-based analytics and benchmarking for a robust understanding of how their coverages, program structures and experience compare with peers in their industry, size band and geographic footprint.

Related: Here's what the insurance agency of the (near) future will look like

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5. Clean your data

The adage "garbage in, garbage out" applies especially to information technology.

Today, many brokers and agents build data warehouses and analytics on platforms of bad data.

Many firms have huge problems with the quality of data housed in their agency management systems. And cleaning this data on your own for use by the front-line team can involve exorbitant costs in staff time and expenses, as the process must be maintained continuously as new data are captured.

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6. Deliver data and analytics where they're most needed

Many brokers focus on building centralized data warehouses and analytical tools.

While that's a required first step, it won't deliver the desired results. It's imperative to get information and functionality into the hands of individuals who interact directly with clients and carriers on a timely basis, so they can access and use it when and where it's needed.

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7. Focus on the point of sale

Many brokers fail to invest adequately in point-of-sale technologies, such as tablets, to support producer/client executive efforts to demonstrate the power of their data intelligence, market insights, analytics and the like. 

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8. Don't neglect the need for training and ongoing support

If there's one area where the biggest breakdowns occur, it's a lack of training of sales and client teams on how to leverage technologies in face-to-face interactions with prospect and clients.

Effective rollouts require adequate upfront training backed by "ongoing" support to make sure front-line producers know how to use your data to differentiate the firm, drive sales and improve retention.