Are You Using Data to Fuel Your Company?
Data monetization is far from a new concept, however, you may be surprised to know that not every company is properly using their data to create the tactical strategies that can make any business run smoother. It’s important to look first at why data monetization is vital to any business, regardless of size.
“Easy” Revenue for Mega-Companies
It’s easy to see why big names like Facebook and Google see a large portion of their revenue coming from effectively using and collection of data. They’ve turned data into money, clear and simple. It’s easy enough to see how it works for companies that have become household names. These are sites and services we use on a daily basis with little thought. Their services are wanted, highly utilized—and in the case of the two above examples—continue to be free. Making revenue from their data is straightforward. Massive amounts of data are accumulated and given to advertisers for an agreed-upon fee.
Of course, this is a common way to make data work for your company. It’s a straightforward way to make revenue off of information easily given, and in return for the user, give advertisers the chance to create a more tailored experience to what they see. What can monetization do for you?
- Greater customer retention.
- Enhance marketing through personalization.
- Data sharing that optimizes the chain of supply with partners.
What Data Should You Value?
Not all data is created equal. But which data has value and which does not. It’s also essential to note how you’re trying to monetize from its value. Some companies to use their data internally, where others may choose to sell any valuable data. Regardless of what you choose to do, searching out worthwhile data can help you grow revenue or cut down on general costs.
Profiling Target Customers
Before you begin making revenue or potentially reducing costs by analyzing data, it’s a smart move to profile your target customers. What are their needs and wants? It’s vital to create profiles and analysis through real customer behavior, regardless of where they are located in proximity to your business. These insights can help a company understand what is key for client retention, works to attract a wider audience, and inspire appropriate sales methods.
Using Data to Reduce Costs
Although creating new revenue is an ideal situation for monetizing data, it can also be the perfect solution to reduce the overall operating costs of a company. By using data to boost highly efficient practices, a company can essentially reduce unnecessary costs.
The Ideal Data Platform
There are several ways to collect company data from various sources. Having that data analyzed can truly push a company to its next level. Whether you plan to use a self-built platform or lease a platform, there are pros and cons to each path. Unsure what’s right for your business and team? Contact Align BI today. We can help you turn your unused assets into actual revenue.