Monetizing data is a must in today’s market. Data is an asset and has value — be it usage data, customer details or other data customers share as users of your service. But unlocking that value can be a challenge for companies of all sizes.
In today’s infographic from IDC and SAS, they identify three approaches to data monetization and apply the theoretical framework to two specific industries. These three approaches, however, are relevant to any business looking to derive value from their data. Effectively monetizing data means:
- New revenue streams
- Better products and services
- Operational efficiency
- Profit optimization
Key Approaches to Monetizing Data — Data Decisioning
One approach to monetizing data is to leverage insights to enhance processes. SAS calls this Data Decisioning. By combining customer data with comprehensive analytics and A/B testing, any business will have a more accurate perspective on what resonates with customers. From these insights, a company can optimize the customer experience on their website and within their product or service. Improving customer experience will increase customer loyalty and satisfaction which, in turn, increases revenue.
Key Approaches to Monetizing Data — Data Products
Establishing a service based around the data a company collects is another important strategy for monetization. For instance, in our earlier look at connected devices, we noted Nest successfully leverages customer data for a paid service. Their NestAware data storage plan allows customers to access Nest Cam video data from anywhere, and stores tiered amounts of data at different monthly or annual price points. Nest makes it easy for customers to access the service, including offering a free trial.
Key Approaches to Monetizing Data — Data Partnerships
SAS’s third approach to data monetization involves selling or sharing core analytical capabilities with partners. In the age of APIs, partnerships are easier than ever. Essential data can be easily communicated between platforms and organizations. And companies will pay for access or ownership of the data. For example, the infographic points out that banking data can be shared with retailers, or manufacturers may have important fault diagnosis or productivity optimization capabilities that partners in the supply chain would pay for.
Whether your company uses data to shore up internal processes, create innovative products or services to sell directly to consumers, or works within a B2B partnership, you can tap into the value of data to earn more revenue. In fact, enterprises that leverage analytics are two times more likely to outperform their peers. Statistics like that beg the question – can you afford not to monetize your data?
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