Best Ways to Monetize Your Data
If knowledge is power, then data is wealth.
There's simply no question about it - data is at the center of the modern digital enterprise (or at least it should be). One of the keys to success (in 2018 and beyond) will be the ability to generate additional revenue streams by using data effectively. But what does "effectively" mean in this context?
Below find some of the ways that successful enterprises today are turning their stores of data into cold, hard cash:
+ Eliminate the Waste
One of the benefits of data is that it can expose waste. Use data to identify patterns associated with unprofitable behaviors (demographic audiences with multiple visits from sponsored sources but no profitable interactions). Eliminating waste by exploring big data can also extend beyond advertising or marketing fraud and into many other enterprise departments including accounts payable/receiveable or collections.
+ Personalization & LTV
If enterprises can get their consumers to buy more and buy more often the impact can be immense. That can be difficult if data is not being used effectively. Creating profiles of ideal customers based on data and optimizing the interaction through personalization techniques has been shown to consistently increase the lifetime value (LTV) of consumers.
+ Customer Retention
If it costs more to acquire a client than to retain one, then enterprises need to focus their attention on customer retention. Rather than using a narrow set of data points to determine how best to serve customers next time, organizations are now using richer combinations of data, more intelligent tools, and data science to determine when customers will likely churn, why they are likely to churn, and what the company should do to preempt it.
The aforementioned are indirect (not direct) ways to monetize data - although there's no denying using big data in this way is productive. While it makes sense to keep data private and proprietary, there are other ways to directly profit from its availability.
Trading data with partners for some mutual benefit, for example, selling it to interested parties (which can include a host of upsell data points) or even giving it away to all for free in the hope that it drives awareness of a brand, are all effective methods to monetize data.
So, what is the best way to monetize data? There is, of course, no one "best" way - it depends on the needs of the enterprise (revenue or retention) and the volume and depth of the data available.
In your experience, what's the best way to monetize the data that's been acquired? Share your insights with a comment below now.