Why Outsource your Data Mining

Why Outsource your Data Mining

Data Mining is something that most people in the Direct Marketing Industry have dealt with and
played with for the past 10 years.  Creating profitable and effective Direct Marketing campaigns has
become a challenge, especially in the highly regulated and competitive Insurance Industry.   The
tougher these campaigns have become over the past few years , the more innovative and agile
we've had to become to get the right campaign mix delivering the necessary ROI to the various parties.

With so many underwriters becoming more focused on bringing various services in-house, some of
the key benefits of outsourcing any function has been lost in muddy waters.  Data Mining is certainly
one that has proven to challenge every business whether you are a call centre, an underwriter or a list owner.

So why outsource your data mining?  Firstly, your outsource partner probably  provides similar
services to other companies on different datasets.  The experience and knowledge  that comes from
working on various data projects across diverse industries, provides unique and invaluable insights
which would  benefit your project. Secondly, your outsource partner is independent and should be
able to provide an objective  data mining service  to meet the business requirements of all the
parties typically involved in the Direct Marketing of insurance products.  Traditionally the
requirements from the parties are not always aligned.  The call centres needs to sell as many sales as
possible;  the  list owners want to maximise the lead usage of their database and the underwriters
want paying policies on their books. So how do you manage expectations and  meet everyone’s needs.

Meet ODDS, Collective Dynamic’s Optimum Dynamic Data Scoring (ODDS) tool.  As an administrator  our key focus has always been to administer policies that will collect for the long term and as a call centre we understand that we need to achieve high response rates from the data, so we understand how precious data is and how important it is to sell the right product to the right person at the right time.

Collective Dynamics has always preferred a risk-based costing model which ensures that our
objectives are aligned with those of our clients, so we make it our goal to understand our clients'
unique challenges and develop real and creative solutions for these challenges. Therefore our model
not only scores each lead, indicating the probability of each client responding to our offer, but also
paying the first premium and more importantly, it indicates how long we can expect the client to pay premiums.

Equipped with this information and a decade of industry related experience and  knowledge , we
create campaigns combining data with scores that will deliver the desired call centre results;
maintain the underwriters required ROI and maximise the list owners' data.

So why outsource your data mining or scoring?  You  need a partner that understands the complexity
of the elements required to create a  successful Direct Marketing campaign, while taking the most
important rule of direct marketing into account - 70% of the success of any direct marketing 
campaign is dependent on the data.  

So why are we not spending 70% of our time and money on the data to make sure that we get it
right?  Find a partner who understands the basic principles of Direct Marketing and more
importantly, who has the experience and knowledge to effectively apply this to your data and your campaign.

Find out more about ODDS by following this link (http://maxmyodds.com/) and you will find your data scoring partner.