3 Steps to a Solid Data Strategy

By Sponsored by TMG

The hype about big data can distort our view of the arguably more important small data—powerful information capable of delivering real-time insights. To give consumers the best possible financial services experience with your CU, first focus on the insights from real-time, small data—the traces of consumer behavior left behind by actions taken every second of every day. Thinking about small data helps executives, managers and team leaders truly understand the challenges and aspirations of consumers. These insights give CUs the kind of in-the-moment intelligence that can help turn members’ most mundane financial tasks into highly memorable moments. Here are three steps you can take to develop a plan that makes the most of both small and big data:

1. Prioritize the right capabilities to power big and small data strategies. CUs should consider the key consumer pain points they need to address and how small data applied to those points can trigger action that will alleviate pain. The question is: What are the high-value, low-difficulty problems we are trying to solve? Give yourself time to learn, relearn and course-correct the smaller issues. Then, tackle problems with a higher level of difficulty and identify new solutions one step at a time.

2. Enable faster business decisions by utilizing data. Beyond providing the means for personalized service, small data can also help executives make business decisions more quickly, immediately impacting revenue. Restaurateur Lindsey Hiken demonstrates this in her business. If the cost of meat goes up by seven cents a pound, she may not detect a change in revenue until six months later. Hiken, however, insists on digitizing each vendor receipt, gathering that raw data into a database that flags price changes in real time. Once alerted, Hiken can make immediate changes, whether that’s to up her prices, switch out an ingredient or negotiate with a vendor.

3. Run big and small data plans simultaneously. TMG client Partners Federal Credit Union, Burbank, Calif., is on that path. Because Partners FCU serves employees of The Walt Disney Companies, who are accustomed to high-quality interactions and exceptional experiences, data-driven insights are critical. The CU’s leaders are assembling an internal team as a first step on its roadmap to big data analytics. Led by a chief data and analytics officer, this data team will be responsible for the data lifecycle inside the credit union, managing the people, processes and technology involved in the data activities. These activities will include acquisition, analytics, personalized marketing, governance, quality and technology.

Financial institutions working on their big data plans have to know where they are headed, the outcomes they want to achieve and how the data they collect will deliver the insights they need to produce high-value products, services and consumer experiences. So, what will you do with those data insights, both big and small? Shazia Manus is CEO of CUES Supplier member TMG, Des Moines, Iowa. You may also be interested in attending CUES School of IT Leadership, slated for Sept. 27-29 in Charleston, S.C.