Gathering clean, reliable data for a business is extremely important and is the first step to becoming a data-driven organization. Often times, as businesses begin collecting their data, they find themselves challenged with lingering questions and an obvious need for clearer metrics.
As businesses continue to build their analytics program by ensuring proper tagging, utilizing a good tag management system (TMS) governance, and configuring alerts, they will still end up challenged if they’re not looking at the right metrics or setting up the proper visualizations. Without identifying the appropriate metrics, all of the hard work put into gathering those numbers would have been better spent watching cat videos or cleaning the office coffee pot. It’s time to ensure you’ve got the best metrics and visualizations to help answer those important business questions. Working closely with our clients across a variety of industries, I am going to identify some of the top metrics for each of the following verticals:
Metric 1: Employees per $XX of Premium Written
Depending on the size of your business, that number may be $100 million, $10 million, or any number that would give you an idea of a healthy profit margin. The goal is to prevent overstaffing or implement higher premiums to support current levels. Below is an example segmented by line of business:
Auto: 137 FTEs/$100 million in Premium
Home: 122 FTEs/$100 million in Premium
Life: 156 FTEs/$100 million in Premium
Metric 2: Number of In-Force Policies per Agent
This is a good way to determine the productivity of your agents. A low value can indicate that sales, marketing, or customer service may not be up to par.
Metric 3: Average Policy Size
Getting a sense of how large your policies are is a good top-level indicator of how your sales and retention processes are functioning.
Metric 1: Average Cost per Claim
How much does each claim cost on average? How about by line of business? This data can help you pinpoint issues quickly and dig deeper into outliers.
Metric 2: Claims Settlement Cycle Time
One of the biggest customer complaints is how long the process takes from the start to the end of a claim. Tracking this will give you an idea of how efficient you are across departments.
Metric 3: Denied and Paid Claim Ratio
How many claims are you paying out on versus how many you are not? This ratio can establish an average so that you can see what lines of business are contributing to a skew. Determining this can give you the data to govern your future risk appetite.
Metric 1: Customer Satisfaction Scores
Customer service is a large component of success for travel companies; it is extremely beneficial to be in-the-know on how your customers are feeling about your site and services. Integrating scores from tools like OpinionLab, as well as any back-end data, can give analysts an idea of strong points and opportunities for improvement to increase customer satisfaction.
Metric 2: Revenue per Available Room (RevPAR)
This metric is a standard for the hotel industry and should not be overlooked. To determine evPAR, use the following formula:
The formula is as follows: RevPAR =
Total Revenue for the Period/ Number of available Rooms in the Same Period
• Period: 30 Days
• Number of Rooms: 1000
• Average Room Rate: $180/night
• Average Occupancy rate: 75%
• Total Room Revenue: $4,050,000 (1000 rooms X $180 X 75%)X 30 days
• RevPAR = ($4,050,000/30,000) = $135
Metric 1: Market Share by Line of Business
For larger financial institutions, and even smaller ones, it’s always good to have your finger on the pulse of the vertical. This data will have to be imported from outside sources but it is worth the investment for the insight gained.
Metric 2: Revenue Growth by Line of Business
How much is each line of business growing? The data will identify the lulls and peaks so you can determine where to make your investments.
Metric 3: Contact Us Types
Should you be putting your resources towards the call center, live chat, email correspondence, or even social media? Tracking how your clients communicate with you can help you focus your efforts on the most popular and efficient channels. A horizontal bar chart gives you a quick look at which channels are most popular:
Metric 4: Budget Variance
Analyzing your budget spend versus your planned budget is important in staying on track across all your investments. A line graph easily shows the trajectory of spend vs. planned–see below for a sample:
Clean data achieves the best insights.
Gathering clean and wholesome data is a daunting task in itself, it takes a lot of preparation and proper set-up. Having your team devote their time to pulling the data without ensuring you’re examining proper metrics and visualizations is throwing productivity and operational costs down the drain. Don’t fall victim to senseless data, set up the appropriate metrics to gather the best possible answers and clarity for your business.
Not in the insurance, travel or financial industry? Talk to us about the right metrics for your business, e-mail us at email@example.com
Questions? Leave a comment below!