Have you ever wondered how to leverage your internal data* for external use? Thanks to the data monetization, the effort and infrastructure you have painstakingly built over the years can turn into a new revenue stream for your organization: in some way, you sell your data to your existing clients or prospects.
*Internal data: data retrieved from inside your company to make decisions for successful operations
Whatever the sector you work in, whatever the kind of data you manage, data monetization could rapidly turn into gold. Social media, smartphones, products or services accessible by the user are precious information with high potential. Especially when it has been combined with external sources, like geodata, weather and data from objects (Internet of Things), data drives you towards more accurate insights for your business.
Internet actors have long been collecting data for internal use (to better understand its customers is to better target them, provide personalized and customer-centred content) and have gathered more information than they really need or use… what about turning it into a new revenue stream?
User Data Monetization: Customer Data Monetization means that the user gets the service (for free) and the company sells the data to a partner
1. Pathway to Data Monetization:
How to crack the Big Data golden egg? In Big Data Monetization process, nothing is left to chance. The more questions your data can answer, the more valuable your data is. You can either provide raw data, clean data set or intelligence. Let’s go further with the following illustration.
From Instarea, https://instarea.com/data-monetization-new-fuel-growth-many-industries/
When it comes to the external use & monetization step, it does exist many ways to embrace big data monetization in your business model:
A consumable, enriched and clean data set
An analytical application (think dashboard or predictive model)
Development of added value services.
Companies like Nielsen, Acxiom, TransUnion or Bloomberg run their business on licensing their data in raw format or as part of an application infrastructure. Over the last years, this disruptive introduction of Big Data Monetization in their business model has strengthened their market leadership position.
Here are some examples on how your wealth of data and insights in characteristics and behavior of the mass population can be turned into gold:
2. Data Monetization requirements:
Nevertheless some important things have to be taken into account before digging into data monetization. Here are the typical aspects to be cautious with:
Your position on the market: What is the market share of your organization? Did your competitors already introduced external data monetization?
Legal aspect: Do you have legal rights to re-use your client’s (B2B and consumer) data?
When collecting, processing and selling user data, it is important to respect ethical considerations, like data privacy and the sensitivity of data.
Digital maturity: Is your organization ready to operate the required IT, sales and service infrastructure?
If you have these covered, you should be in good shape to start a more formal, meaning budgeted evaluation of your go forward.
3. How to be disruptive thanks to data monetisation?
Across industries, the company's primary objective of data-and-analytics activities is to generate new revenue. They add new services to existing offerings. They can develop entirely new business models or even collaborate with other companies in related industries to create pools of shared data. These efforts are also proving to be a source of differentiation and success.
Here are some examples of data monetization success story we invite you to do some research about:
Facebook analyzes and sells user data to third parties in order to place personalized advertisements.
PatientsLikeMe gathers customer data on diseases, anonymize them and sell them to pharmaceutical and health companies
Telefonica, Verizon, Orange and other telecommunication firms sell data on the locations, movements, web browsing habits and other data categories to third parties.
Payback provides loyalty card for different retail businesses: customer can collect points and redeem them – Payback tracks customer behavior and sells the information back to retail businesses.
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Created in 2017, DRIVE is a digital performance company providing clients with a data-driven marketing strategy, powered by skilled talents, reliable data and scalable technology system. Certified on major analytics and conversion solutions such as Google Analytics, AT Internet and Adobe Analytics, we combine our expertise to meet your business expectations. With experience in both brand and agency matters and working within international environments for more than ten years, we can accompany you in facing your challenges.