A Profitable Weather Strategy: Why YOU Should Care

There is no question that weather carries daily significance.

Tue Sep 03 13:16:00 EDT 2019

I often preach about the relentless influence weather has on both our personal and professional lives. More specifically, I preach about how it guides the decisions we make in each. From insignificant decisions, such as choosing not to golf on a stormy day, or opting for a hoodie instead of a t-shirt at the department store, to significant decisions such as seeking shelter before a tornado outbreak or accurately pricing risk across a book of business -- there is no question that weather carries daily significance.

Now that I’ve beaten that point to a pulp…so what? Why should anyone care? Weather has happened and will continue to happen for the rest of eternity, and life carries on regardless.

While these arguments are valid, I find them unimpressive and seriously lacking ambition. What if, as a society, we decided not to pursue modern medicine? What if millions of people died each year from the common cold because we decided developing penicillin was not a priority? Admittedly, it’s hard to compare the adversities of weather to modern medicine, but the implications across the business landscape are nothing short of catastrophic.

Here’s why.

For business leaders, understanding localized weather impact before, during, and immediately after weather occurs is extremely difficult to do. There are several dynamic pieces to manage, including time, geography, and magnitude of impact – not to mention cortisol levels.

Attempting to make sense of these various data points at scale, and in enough time to make a strategic decision, is nearly impossible. There is a very finite window of opportunity to make proactive and/or reactive decisions as a result of weather, and in most cases, as length of time required to reach a decision increases, ROI decreases.

This is why the delivery and organization of real-time weather data is the most critical component in deploying a successful enterprise weather strategy. Time is money. If the data is difficult to operationalize, then its value doesn’t actually matter.

But what if it were possible to specify customized parameters and locations for proactive alerting? What if it were possible to immediately identify the locations hit hardest by a recent storm and understand just how hard they were hit? What if all of this was readily consumable and complete with relevant context to suit your business needs?

In this three-part series, I’ll review three case studies in which organizations of all types deployed a weather strategy resulting in an undeniable ROI. Read The Savvy Claims Manager, The Cautious Underwriter and The Opportunistic Retailer to learn more.

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