The Times They Are A-Changin’By: Sagar - Feb 26, 2017
The power of Insights and Analytics in Retirement.
The tune that Dylan sang in 1964 prophesying change becomes more pertinent with each passing year. We know live in a time where a machine (Libratus) is capable of bluffing us and beating the best humans at Poker. Somewhere else, Target is predicting pregnancies based on the shopping habits of women.
These are examples of how companies are using Analytics to improve and innovate: Google is able to predict flu trends by simply aggregating search queries, UPS optimizes delivery routes for their field agents, P&G is using predictive analytics to come up with new products, Amazon gives customers recommendations based on various criteria. Why, even Obama ran a very targeted campaign (see project Narwhal) to become President.
There are broadly three kinds of insights one can uncover with Analytics:
The driving force behind analytics is data. The more data one has, the more precise and powerful insights one can possibly obtain. And that brings us back to our domain where Record keepers today are in an enviable position – they are ‘sitting on’ decades of data on plans, participants, sponsors, advisors, Investments, 1099s, 5500s and so much more. With Analytics, plan providers can get very powerful insights, which they otherwise would be oblivious to. Depending on priorities, one can choose to focus on one or more of the types of Analytics listed above.
What if, as a Retirement Plan Administrator/ Recordkeeper, one can get access to actionable insights such as these listed below:
Providers can use analytics to profile customers, send targeted messages, increase sales, forecast capacity and demand, improve operational efficiencies, retain more customers, and even use social media Analytics to run powerful campaigns. As you can see, the possibilities are endless. The ability to decipher patterns in data, understand correlations and solve for problems combined with the ability to predict outcomes makes this a tool that should be central to any Business.
Of course, with a large data repository comes great responsibility. An increase in our digital footprints raises privacy concerns, and companies will have to be careful not to cross that line. However, as clear from the examples above, one can derive highly actionable and valuable insights from the aggregate data without compromising on personal data
The Retirement industry has always been a little slow in the adoption of disruptive technologies and ideas, but it is time to change, for as Dylan said ‘Your old road is rapidly aging. Please get out of the new one if you can’t lend your hand. Cause the times they are a-changing’Disclaimer
Categories : Retirement Analytics
Tags : analytics Retirement on Analytics
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